‘Everything is on the table’: Workplace Relations Minister Tony Burke’s warning to CFMEU

The construction division of the CFMEU could be deregistered following damning allegations of links to outlaw motorcycle gangs.

Workplace Relations Minister Tony Burke is not ruling out deregistration of the construction division of the CFMEU following damning allegations it has links to outlaw motorcycle gangs.

His stark warning to the militant union came as the state government announced it had referred claims of criminal conduct at the CFMEU to police in the wake of union boss John Setka’s resignation.

Mr Burke on Sunday put the CFMEU on notice, saying if it did not clean up the Victorian division, he would.

He also revealed he had sought advice from his department secretary about the ­extent of his ministerial powers and whether they included the appointment of administrators to branches.

The criminal conduct claims have been referred to police in the wake of John Setka’s resignation. Picture: Nicki Connolly

On the allegations of criminal links, the union itself should act “immediately and effectively” to address the alarming claims.

“If they don’t, I will,” Mr Burke said.

“The fact that John Setka went is a start. It is in no way the end of what needs to be done.

“I want to make absolutely clear, everything is on the table.”

Asked whether he would consider deregistering the union if it was within his powers, Mr Burke said: “If it is what needs to be done”.

He said the criminal elements were “absolutely abhorrent” and it was “completely unacceptable” that people ­involved in outlaw motorcycle gangs could take the place of delegates on sites.

Treasurer Jim Chalmers said the allegations were completely unacceptable.

“My experience of trade unions is that they are overwhelmingly a force for good in our society and in our economy and trade union leaders are overwhelmingly good and decent people with their members first and foremost in their minds,” Mr Chalmers told ABC radio.

“But you can’t say either of those things about John Setka and the CFMEU.”

He said deregistration was being considered.

“We need to clean up the CFMEU,” Mr Chalmers said.

“That is abundantly clear from these abhorrent revelations.”

Tony Burke says the union itself should act ‘immediately and effectively’ to address the alarming claims. Picture: Martin Ollman

State Roads and Road Safety Minister Melissa Horne said Premier Jacinta Allan, who had not yet made a statement, shared “serious concerns” about the allegations of union misconduct.

“We have taken action to be able to refer some of the ­behaviours that we have seen to Victoria Police,” Ms Horne said.

“Workers deserve better, workers deserve delegates that are respectful, they are professional and they are operating within the law.”

Asked about the possibility of deregistering the CFMEU, Ms Horne said that was a matter for the party and to “see how this unfolds”.

She defended the government’s control of infrastructure projects, saying there were strong checks and balances in place with agencies going out to audit sites when appropriate.

Australian Industry Group chief executive Innes Willox called on the federal government to “establish a judicial ­inquiry or royal commission” into the union’s activities ­nationwide.

Mr Willox said billions of taxpayer dollars had been wasted over decades due to the CFMEU’s antics, and alleged links to organised crime “define a union that has no place in Australian workplaces”.

“The allegations require federal and state governments to immediately audit the role of the union on taxpayer-funded infrastructure projects and to remove union officials with criminal organisation links,” he said, adding Mr Burke should reinstate the Australian Building and Construction Commission.

Mr Burke defended Labor’s decision to axe the former construction watchdog saying “it didn’t fix anything”.

Asked about Labor accepting donations from the CFMEU, Mr Burke and Ms Horne said that was a matter for the party.