CFMEU accuses Burke of ‘betrayal’ over forced administration

Zach Smith claims Tony Burke breached an undertaking to give the union a chance to address allegations of criminality before forcing it into administration.

CFMEU national secretary Zach Smith has accused Tony Burke of breaching an undertaking to give the union a chance to address serious allegations. Picture: Aaron Francis/NewsWire

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CFMEU national secretary Zach Smith has accused federal cabinet minister Tony Burke of breaching a personal undertaking to give the union a chance to address alle­gations of criminality before ­forcing the construction division into administration.

Mr Smith on Thursday said he spoke to Mr Burke on July 13, the day after John Setka quit as the union’s Victorian secretary, and he believed the then workplace relations minister had committed to giving the union an opportunity to internally address the issues without the need for an external ­administration.

“I think his exact words were, you have got a chance to address these issues,” Mr Smith alleged Mr Burke said during their Saturday conversation.

“That undertaking wasn’t honoured. We weren’t given a chance.

“I think history will show that and we should have been given a chance. As a democratic organisation, we should have been given that chance.”

Days after the conversation, Mr Burke announced that CFMEU construction division branches in five states would be placed under the control of an external administrator.

Asked on Thursday for a response to Mr Smith’s claims, a spokesman for Mr Burke said the now Minister for Home Affairs had no comment.

Tony Burke. Picture: Martin Ollman/NewsWire

In an interview on the ABC’s Insiders on July 14, Mr Burke said he had sought advice from his department the previous day – the same day as his conversation with Mr Smith – about his powers to deal with the CFMEU in the face of the criminality revealed inside the union.

“As that advice comes in, I’m effectively going to be looking at three things: the advice on the extent of my powers, the allegations as they’re revealed, and finally the extent to which the union itself acts immediately and effectively. If they don’t, I will,” he said.

The CFMEU national executive placed the Victorian division into administration and promised an independent investigation following the explosive allegations of criminal behaviour, including corruption, bribery and links to underworld figures and bikie gangs.

Mr Smith at the time refused to criticise Mr Setka and resisted ACTU calls for the union to stand down officials subject to criminal investigation, including the union’s NSW secretary Darren Greenfield.

Mr Smith on Thursday said there were “members who are angry that the union took steps to address these issues and the ­government still imposed forced administration”.

“There are members … angry that this has happened in circumstances where John (Setka) stepped down and the union clearly started taking steps to respond to allegations in the media.

“I understand that anger, I ­really do,” he said. “It was my understanding we would be given that chance (to clean up the union). With John volunteering to go, that would give us an opportunity to internally address issues without forced administration.”

“History will show we weren’t given that chance. What is important to me now is my commitment to leading the union and Victorian branch through administration and rebuilding afterwards.”