ALP national executive suspends CFMEU after union hit with allegations of criminal links, corruption, bribery

Labor’s national executive has suspended the CFMEU following days of explosive allegations relating to criminal links, bribery and corruption.

The embattled Construction, Forestry and Maritime Employees Union (CFMEU) has been suspended by Labor’s national executive and barred from giving political donations, following days of explosive allegations of corruption, and the union’s links to organised crime.

The ALP’s national secretary Paul Erickson said the suspension would be enforced “until further notice” and apply to the union’s construction divisions in NSW, Victoria, South Australia and Tasmania.

“The No.1 job of any union and its officials is to look after its members. The reported behaviour is the complete opposite of this,” he said in a statement.

“The national executive has taken note of the general manager of the Fair Work Commission’s statement that, among other things, he is seeking advice about making an application to place the branches of the CFMEU into administration.

“The ALP national executive will consider extending the suspension of affiliation to other branches of the construction division should they be placed into administration.”

Five days after the allegations first emerged, the government on Wednesday announced independent administrators would investigate the construction and general division of the union in Victoria, Queensland and NSW.

The allegations will also be investigated by the Australian Federal Police.

Prime Minister, Anthony Albanese has again defended his government’s response to the CFMEU issue. Picture: NewsWire / John Gass

The Prime Minister on Thursday again defended the government’s response, as Opposition Leader Peter Dutton renewed his attack and calling for the deregistration of the union.

“Well donations have been banned and what we’ve done is to make sure that we’ve taken the strongest possible action,” Anthony Albanese said in Winton in western Queensland.

“Deregistration would result in the union still being able to operate but without being regulated properly.

“We want to make sure that we stamp out corruption, that we take action that’s effective.”

ACTU chief asked about ‘personal safety concerns’.

Speaking to ABC Radio National on Thursday, ACTU secretary Sally McManus was asked by host Patricia Karvelas: “You’re taking on a powerful force, are you concerned about your personal safety?”

Ms McManus said people had expressed concerns but said she would personally “stand up against this behaviour”.

“Well, a few people have raised that with me. I’ll tell you this – we will do what’s necessary. I will do what’s necessary,” she said.

“The union leadership will do what’s necessary, we will not flinch.”

ACTU secretary Sally McManus said people had raised concerns for her personal safety during her public condemnation of the CFMEU, but she said she would continue to hold the union to account. Picture: NewsWire / Martin Ollman

Ms McManus again denied the ACTU was aware of alleged corruption occurring at the union prior to claims being made in Nine media reports.

She said the union peak body had a history of holding the CFMEU to account, referring to her calls for CFMEU Victorian boss John Setka to stand down in 2019.

Ms McManus said Mr Setka, who resigned following claims the union had handed plum jobs to bikies and criminals and allowed them to infiltrate government-funded construction sites, most likely “hates her guts”.

“People have got to understand what happened five years ago, the ACTU set a standard for behaviour, and we said it wasn’t tenable for John Setka to be a state secretary, after he was found guilty of DV-related charges. We stood up to him,” she said.

“John Setka hates our guts, hates my guts, hates (ACTU president Michelle O’Neil’s) guts, the ACTU as well.”

Ms McManus said she believed the former CFMEU’s Victoria’s boss likely ‘hates her guts’. Picture: NewsWire / Nicki Connolly

She said since the incident, the CFMEU has been “totally isolated from us” since 2019, and described Mr Setka as someone who “did not uphold union principles” and “someone who pursued vengeance”.

“These last five years, his union has been totally isolated from us. He went about then getting rid of anyone else who stood up to him and said ‘This does not align with union principles,’ she said.

“I would not be welcome in the front door of the office, let alone on a building site, for the last five years.

“Because Setka’s union has been isolated from the ACTU, we had no idea of this alleged infiltration by criminal elements.”

Ministers back CFMEU suspension

Before the Labor national executive met on Thursday, both NDIS Minister Bill Shorten and Agriculture Minister Murray Watt flagged officials would push to ban donations from the union, with state premiers already ceasing contributions in Victoria, NSW, and Queensland.

“We’re not taking any CFMEU money anymore. The evidence has come out. It’s there. We’re putting a stop on it,” Mr Shorten told 7.30 on Wednesday.

“I fully expect the national executive to make sure that there is no more donations received from the CFMEU until their house is cleaned.”

The embattled construction union has been suspended from the CFMEU, with Labor’s national executive expected to ban donations. Picture: Glen Campbell/ NewsWire

Senator Watts said he’d also support the move.

“I would certainly expect the national executive of the Labor Party to be making moves in that direction this morning and that would have my full support,” he told ABC News Breakfast.

“The ALP has an interest many making sure that donations we receive aren’t tainted from infiltration from criminal gangs which seems to be occurring here so I would firmly support that action by the national executive if that’s what they do this morning.”

On Wednesday, Industrial Affairs Minister Tony Burke said the government and the Fair Work Commission would appoint an independent administrator to investigate the union, and committed to changing legislation if necessary.

However he stopped short of deregistering the union – something that’s been criticised by the Opposition.

The allegations will also be investigated by the Australian Federal Police.

Fair Work Ombudsman Anna Booth said investigations are continuing relating to possible Fair Work Act contraventions.

“If unlawful conduct is established we will take appropriate enforcement action,”

Ms Booth said in a statement.

“The FWO has secured total penalties of more than $3.3m in litigations that have concluded since they were transferred to the FWO in December 2022.

“The large majority of these penalties have been secured against the CFMEU or its officials.

“Improving compliance across the building and construction industry is a priority for the Fair Work Ombudsman, and we will continue to investigate reports of non-compliance and hold to account those who act outside the law.”

Originally published as ALP national executive suspends CFMEU after union hit with allegations of criminal links, corruption, bribery