CFMEU South Australia placed under administration after Victorian branch referred to watchdog

The South Australian arm of the powerful construction union, which is under the control of the Victorian branch, has also been put into administration.

The South Australian branch of one of Australia’s most powerful unions has been placed into administration.

It comes after the news the Victorian Construction, Forestry and Maritime Employees Union (CFMEU) was referred to the state’s corruption watchdog following allegations of bullying, intimidation and criminal links.

The South Australian branch, which is under Victorian control, went into administration on Monday.

Acting SA Premier Susan Close said the connection between the two state branches meant the issue could be widespread across the border, according to The Advertiser.

“What the Premier has decided is to write to the secretary of the Australian Labor Party and say that the construction division of the CFMEU needs to have its affiliation to our party suspended while these allegations are fully investigated,” Ms Close said.

“While there is no evidence of any nefarious activity here in South Australia, the Premier has already spoken to the Commissioner for Police to undertake investigations so that we can ensure that that’s not come over the border to South Australia.“

It comes as Mr Malinauskas - who remains on leave until July 24 - has asked SA Police to investigate whether there are any links between the rogue CFMEU construction union and bikie gangs in South Australia.

“It is my firm view that construction workers deserve to be represented by committed professionals, not people hanging out with bikie gangs,” the premier wrote on social media on Saturday.

“Bikie gangs don’t belong in the labour movement full stop. If there is any established connection, then get them out.”

Premier Jacinta Allan said she had referred the allegations made against the CFMEU to the state corruption watchdog. Picture: NewsWire/ Valeriu Campan

Shortly after the Victorian CFMEU branch was placed into voluntary administration by its national office on Monday morning, Victorian Premier Jacinta Allan said her government was also taking action.

Ms Allan said she had written to the Victorian Police and the Independent Broad-based Anti-corruption Commission (IBAC) to investigate the allegations.

She had also written to Labor’s national executive to suspend the CFMEU construction division from the state Labor Party, which would also stop political donations.

Ms Allan also flagged toughened statewide anti-bikie laws, to stop people known to the police and courts from associating with each other, plus federal intervention under the Fair Work Act, which could result in the termination of CFMEU enterprise bargaining agreements at all Victorian construction sites.

Victorian government workplace agencies who engaged with construction companies and unions will also be subjected to an immediate review, with greater powers given to the Victorian Infrastructure Delivery Authority (VIDA) so they can remove “individuals with criminal associations from worksites across the state”.

Ms Allan said the steps were necessary, to stamp out alleged criminal behaviour, bullying and intimidation.

The construction division of the powerful union has also been suspended from the Victorian Labor branch, prohibiting it from making political donations. Picture: NewsWire/ David Crosling

“Tens of thousands of people who go to work every day on construction sites to do a good job. They don’t deserve this sort of behaviour infiltrating their worksites,” she said.

“(This is) why in addition to the actions of the federal government, I am taking these strong actions today and will continue, where there is advice we need to do more.”

Ms Allan’s intervention comes after the announcement by the national CFMEU office to assume senior executive powers for the Victorian branch.

A leading legal figure will also oversee an independent investigation into allegations put against the Victorian branch.

CFMEU national secretary Zach Smith said the trade union had “zero tolerance for criminality”.

“The CFMEU has one purpose and one purpose only and that is to defend and advance the safety and conditions of workers,’ he said.

“The Victorian branch has been hugely successful in pursuing this purpose, but the national executive also recognises that a number of recent allegations are serious and demand an unprecedented response.”

The Victorian branch of the CFMEU has been placed into voluntary administration. Picture: NewsWire/ David Crosling

The union was plunged into disarray following a joint ongoing investigation by 60 Minutes and Nine Newspapers, with former Victorian secretary John Setka announcing his resignation on Friday.

The claims of misconduct also include allegations that bikies and members of organised crime outfits were hired as union delegates and allowed on government-funded construction sites.

To date, Mr Setka has denied the allegations and said the “ongoing false allegations” harmed the “work this great union does for its members”.

In light of the controversy, Prime Minister Anthony Albanese and Workplace Minister Tony Burke have threatened the CFMEU with deregistration, both stating “nothing is off the table”.

“We will take whatever action is appropriate but where there are breaches of the law, such as people offering bribes, those people need to be prosecuted by the law,” Mr Albanese told ABC Radio Melbourne on Monday.

“That’s not a political decision. That’s a legal one.”

Prime Minister Anthony Albanese says ‘nothing is off the table’ when it comes to the CFMEU’s future. Picture: Dan Peled/ NewsWire

While the allegations are being investigated by the state and federal police in a joint probe, the Australian Labor Party is also facing increasing pressure to pause donations it receives from the CFMEU.

The construction body makes up more than a third of Labor’s union-declared donations.

While asked repeatedly on Monday, Mr Albanese wouldn’t directly address whether donations would continue, reiterating that “everything’s possible”.

“The people who are working on construction sites around Australia are hardworking Australians. they shouldn’t be tainted with this sort of corrupt behaviour,” he said.

Criticising the government’s response to the CFMEU, Acting Opposition Leader Sussan Ley said the union body should be deregistered and demanded Labor “return and refuse” all political donations in the future.

She also said the Australian Building and Construction Commission (ABCC) should be reinstated after the independent body was abolished by the Albanese government in February 2023.

“To have that tough cop on the beat on building sites, keeping an eye on this thuggery, bullying and bad behaviour is absolutely essential,” Ms Ley said of the ABCC.

Australian Council of Trade Unions (ACTU) secretary Sally McManus argued against the CFMEU’s deregistration, saying it would “run counter” to delivering a “functioning and strong and corruption-free” worker body for the building industry.

However, she said criminal behaviour would not be tolerated and union members found to be involved in such activities should “face the full force of the law”.

“The ACTU calls on the national leadership of the CFMEU to stand down those subject to criminal allegations while investigations occur, including Melbourne police investigations,” she told reporters on Monday.

“We also call on the CFMEU to take all necessary steps to rid the union of any and all criminal elements.”

Originally published as CFMEU South Australia placed under administration after Victorian branch referred to watchdog