Federal Labor Party to stop taking donations from four CFMEU state branches

The federal Labor Party will stop taking donations from four state CFMEU branches, with one senior minister saying the ban is set to last “until their house is cleaned”.

The Labor Party’s national executive will indefinitely suspend the CFMEU construction division’s affiliation with four state branches, stopping all donations and fees.

The executive met on Thursday following damning allegations about the conduct of the militant union’s construction division and a number of its officials and delegates.

ALP national secretary Paul Erickson said the executive unanimously decided to suspend links to its Victorian, NSW, South Australian and Tasmanian branches until further notice.

Mr Erickson did not rule out extending the suspension to other branches of the construction division if they are also placed into administration after the Fair Work Commission revealed it was seeking advice to do so.

“The number one job of any union and its officials is to look after its members,” he said.

“The reported behaviour is the complete opposite of this.

“The Labor Party will not levy or accept any affiliation fees from these branches of the CFMEU for the period of the suspension, and no political donations from these branches will be accepted by the ALP or any of its state and territory branches.”

Bill Shorten says he expects CFMEU donations will stop ‘until their house is cleaned’. Picture: Martin Ollman

The suspended branches will lose all rights afforded to an affiliated union under Labor’s National Constitution and the rules of the ALP state branches.

Senior Albanese government ministers have backed the decision to stop donations from the embattled union.

“The ALP has an interest in making sure that donations we receive aren’t tainted from infiltration from criminal gangs, which seems to be occurring here,” Senator Murray Watt said.

Former union boss Bill Shorten said he expected that the executive would stop receiving donations from the CFMEU “until their house is cleaned”.

CFMEU’s headquarters in Melbourne. Picture: Nicki Connolly

Earlier this week, Victorian Premier Jacinta Allan and NSW Premier Chris Minns announced that they would stop donations from the CFMEU.

Queensland Premier Steven Miles has also suspended donations from the CFMEU, while allegations in other jurisdictions were being investigated.

But Workplace Relations Minister Tony Burke on Wednesday rejected calls for the ALP to repay the donations received from the militant union.

“The concept of handing money back is one of the most astonishing and absurd ideas I’ve seen,” Mr Burke said.

“Are the Liberal Party seriously suggesting that at this moment, the action of the Government should be that we hand money to the CFMEU?”