Inside the CFMEU’s luxury $27 million gym and wellness centre with ‘restorative spaces’ and ‘calming colours’
CFMEU members are demanding answers about why $27m was spent on a gym and wellness centre, which they claim was a vanity project for former secretary John Setka. SEE THE VIDEO
Exclusive: CFMEU members are demanding answers about why $27 million was spent on a gym and wellness centre, which they claim was a vanity project for former secretary John Setka. Images of the inside of the building show expensive weight equipment, stainless steel fit outs and top end stone kitchen features.
The building, which also includes its own rain garden and window panes that generate electricity, has yet to open.
The builder Kapitol Group was still working onsite this week to rectify defects.
The project, which added four levels to an existing building and will also be used for training purposes, was estimated to cost $12 million when it was announced in 2022.
It offered “restorative spaces”, “natural sounds” and “calming colours textures and forms”, according to its planning application at the time.
Watch the exclusive video above.
The final spend was $27 million, however leaked documents have revealed that a valuer claimed it was only worth $8 million.
A CFMEU member was furious at the spend, questioning whether the money could have been better spent.
“How can it cost that much? Did they put in gold-plated taps?” a member said.
“And who is going to use it? It’s likely that it will only be used by the organisers and office staff.”
Zach Smith, who was parachuted into the union’s top job after it was put into administration last year, revealed the $19 million drop in value in a leaked note.
“Over the last three years, the branch has received $27 million to build the Training and Wellness Facility,” he wrote.
“This purposely built facility has received an independent valuation of just $8 million.”
Former CFMEU secretary John Setka was in charge of the union when the project was approved, which was next door to the union’s headquarters.
He was effusive in his praise for the job and the builder Kapitol in a marketing video posted to mark a construction milestone in the project.
“Thanks to the team, youse (sic) have done an awesome job,” he said.
“Let me tell you, I know it’s a tight job and working next to a union office, what a nightmare that could be for a builder but you know what, to Kapitol’s credit and their team it’s been pretty good.”
The project also includes meeting rooms for women and indigenous members.
Mr Setka praised Kapitol’s employment of women during the construction.
“You see all the women working on site. Fantastic,” he said.
“I mean Kapital are probably one of the most diverse construction companies around, they’re pretty modern and hopefully they are setting the pace for some of the other builders.”
Kapitol spruiked the details of the development of the building, which also has a facade facing Leicester Street.
The ageing brickwork was repaired, brick by brick, and the building also included ClearVue solar windows, which were used to generate electricity.
The luxurious building was funded from grants from Incolink, the CFMEU’s redundancy fund.
The fund, which is paid for by contributions from employers of CFMEU workers, also previously shelled out $20 million for a refit of Master Builders Victoria offices.
Mr Setka, the administrator and Kapitol Group did not respond to questions.
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