Union heavyweight CFMEU turns sight to Victoria’s water, asphalting sectors in bid for hostile takeover

The union heavyweight has shown no signs of slowing down in their bid for a hostile takeover of blue-collar council workers, with the state’s water and asphalting sectors its next targets.

Victoria’s water and asphalting sectors are the next targets of the CFMEU as it continues its mission to sign up members from rival unions.

The Herald Sun revealed on Tuesday that the militant construction union, led by John Setka, is seeking a hostile takeover of blue collar council workers, such as garbos and gardeners, who have been represented by the Australian Services Union.

The attempted takeover raised fears of rising pressure on rates, other services being slashed to cover cost spikes, or even bin collections and parks maintenance being disrupted by strikes.

The move has alarmed ratepayer groups, with the president of Council Watch, Dean Hurlston, warning Mr Setka on Tuesday to “stay the hell away from our councils”.

“Councils are already struggling to justify their poor service and extraordinary wages bills, if Setka has his way, we will pay more,” he said.

It has also led to a legal challenge from the ASU, which asserts that the CFMEU has “no place in local government”, including blue collar workers such as garbos and gardeners.

Militant union group CFMEU has shown no signs of slowing down in their bid for a hostile takeover of blue collar council workers. Picture: Liam Kidston

Mr Setka has dismissed the push back from the ASU and accused it of being more interested in getting people selected to safe ALP seats in parliament than representing members.

He confirmed the audacious new push to the Herald Sun, saying: “A lot of garbos, the blue collar workers, they are not getting serviced and they see their union as just happy clapping f--king future politicians who couldn’t give a f--k.”

The Herald Sun can reveal that other sectors are also in the sights of the militant union, which has recently embarked on an expansion mission that has the potential to boost its power and influence over key industry, government and the ALP.

Victorian infrastructure sector insiders say the CFMEU has already been successful in taking turf away from the Australian Workers Union on civil construction projects, such as the Big Build, and that this is contributing to escalating costs.

They said the takeover bid in the water sector was similar to the Big Build, where the CFMEU signs up AWU workers and does agreements with favoured companies, which become preferred suppliers on sites despite inflated tender bids.
The Head builder of the project, contracted by the public sector water company, would prefer to keep industrial peace than risk blowing budgets through delays and shutdowns.

There is no longer an effective cop on the beat, they said, because the Albanese Government scrapped the Australian Building and Construction Commission.

The CFMEU has also started to push into the booming asphalt industry, but sources said there was a rearguard action against this from some projects and industry participants.

CFMEU boss John Setka has dismissed the push back from the ASU. Picture: NCA NewsWire

One insider compared the latest moves to a television script where tyrants were knocking off their rivals to boost power.

“It’s a bit like Game of Thrones, when is it ever enough?” one said.

The Herald Sun recently revealed that inexperienced CFMEU labourers and traffic controllers, who hold stop signs on sites, were earning $206,000 a year due to generous workplace deals for shifts that include 56 hours across a six day week.
The union is currently negotiating a sector-wide workplace deal that would boost the pay of construction workers by a further 20 per cent over four years.

Secretary of the Victorian Ratepayers and Residents Association Tanya Tescher said council workers were already “very well paid” and warned that attempts to hike wages would put the squeeze on services offered due to a cap on rates increases.

“There’s only so far that rates can spread and if wages go up, obviously something else will go down.”

The move also threatens to escalate tensions within the ALP’s Socialist Left, with some warning of the consequences of an affiliated left wing union targeted another’s members.

It comes as Labor and union figures have raised concerns about recent actions of the CFMEU, which has aggressively seized control of taxpayer-funded Big Build and dictates which allied companies get work as suppliers.

They say since the abolition of the Australian Building and Construction Commission by the Albanese government, there is no body with suitable powers to limit the union’s actions.

CFMEU enforcer Mick Myles has been dispatched to lead the expansion mission. Picture: supplied

The Herald Sun revealed this month that suppliers putting in bids for work that were double the price of rivals were getting jobs because they have a workplace deal with the union, and that inexperienced labourers and traffic controllers were earning $206,000 a year on standard 56-hour weeks used for major projects.

Insiders say construction giants would prefer to keep industrial peace and pass through costs than stand up to the CFMEU.

The foray into council matters comes after a rival to the ASU, the Municipal and Utilities Workers Union, moved into the CFMEU head office and aligned itself with the construction heavyweight.

Insiders say the shift is also part of a war between Mr Setka and the former head of the ASU Lisa Darmanin, who was recently selected by Labor to fill a Victorian Senate spot left vacant after the death of Linda White.

Ms Darmanin was one of the members of the trade union movement who, in 2019, called for Mr Setka to resign following his conviction for harassing his former wife, triggering an internal Labor war.

The MUWU is now set to effectively wind up and hand over its powers to the CFMEU, with lawyers drafting letters for new CFMEU council members despite industrial relations experts questioning whether it has powers to do so under current rules.

CFMEU is in the midst of a potential hostile takeover from its rival unions to represent blue-collar council workers. Picture: supplied

A spokesman for MUWU, Darren Creswell, said the CFMEU would not be representing workers like library staff or white collar staff, and downplayed concerns raised about combative tactics.

“A lot of people get the wrong idea about the CFMEU, they haven’t had that much industrial action in the past 12 to 18 months,” he said.

He said the “aim is to have everything in place by the end of the year” by signing up members and then using legal letters to request coverage and allow the CFMEU to sit at the negotiation table on workplace agreements, along with the ASU and nurses union.

Mr Setka said the CFMEU did have the right to cover council workers and said the focus would be on increasing their wages and conditions.

Mr Setka said councils had been fixated on “gender neutral toilets” rather than staff, and was expecting a flood of workers to sign up to the CFMEU.

“While the rest of the trade union movement is disappearing up its own arses, we are actually growing,” he said.

“If everyone hates us so much, how come they want to join us?”

President of ratepayer group Council Watch Dean Hurlston said “Victorians will be horrified if John Setka has his way”.

“Councils are already struggling to justify their poor service and extraordinary wages bills, if Setka has his way, we will pay more,” he said.

“My message to Setka is: stay the hell away from our councils”.