CFMEU reignites demarcation disputes with rival unions

An explosive union fight that sparked chaos, even death threats, could be reignited by rogue construction boss John Setka — and some union bosses have warned Victorians would “pay the price”.

A union turf war sparked by rogue construction boss John Setka is set to explode as the CFMEU threatens to fight its enemies on the worksites of Victorian infrastructure projects.

Senior Labor figures and the building industry fear major projects — including the West Gate Tunnel and the Metro Tunnel — will be delayed as the CFMEU vows to poach members from rival unions, challenging them for industrial control.

In a major political headache for Premier Daniel Andrews, Mr Setka has promised to reignite demarcation disputes with unions which have called on the militant leader to quit.

John Setka. Picture: Daniel Pockett/AAP

The Australian Workers’ Union will be at the centre of the stoush after years of battles with the CFMEU which caused chaos on projects including the Regional Rail Link and the desalination plant.

An upgrade of the West Gate Bridge in 2009 resulted in death threats, car chases and violence as the CFMEU fought with its rivals, copping fines totalling $1.3 million.

“It’s like the Korean War — no peace treaty has ever been signed,” a former AWU secretary said.

The CFMEU’s Victorian branch declared this week it would “no longer recognise traditional long-held membership coverage and demarcation lines with unions that have attacked this branch”.

Other unions including United Voice and the Australian Services Union joined the Australian Council of Trade Unions to urge Mr Setka to quit after he said he would plead guilty to a serious criminal offence.

Electrical Trades Union secretary Troy Gray, a close ally of Mr Setka, said: “John within six months could sign up half the membership of the AWU in Victoria without raising a sweat.’

A senior Labor source said Mr Setka’s message to rival unions was clear: “Industrial peace is over and we’re coming for you.”

ACTU secretary Sally McManus. Picture: Daniel Pockett/AAP

Master Builders Victoria chief Rebecca Casson said union demarcation disputes “can have the immediate effect of increasing industrial stoppages and reducing productivity, slowing the delivery of major projects over which they wield tremendous influence, like the Melbourne Metro Tunnel”.

“The people of Victoria pay the price for project delays and the skyrocketing costs that result,” she said.

Opposition Leader Michael O’Brien said warned Labor’s “internal warfare” over Mr Setka would “result in more disputes, extra costs and long delays on major projects across Victoria”.

“While Daniel Andrews refuses to stand up to John Setka, this dispute will drag on,” he said.

A state government spokeswoman said it was a matter for the construction industry and industrial partners, and that the government was “getting on with Victoria’s big build”.

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Rail, Tram and Bus Union secretary Luba Grigorovitch widened the split in Labor’s industrial bloc of unions today by declaring she was standing by Mr Setka, and that he should “have a right to a fair trial”.

AWU national secretary Daniel Walton had called for Mr Setka to quit because he was “sucking oxygen” from the union movement. United Voice’s national executive also said Mr Setka “must resign” from the CFMEU.

@tminear