CFMEU split closer after bitter factional foes reach truce

Settlement opens door to mining division breaking away from the CFMEU.

National secretary of the CFMEU’s construction and general division Dave Noonan. Picture: Roy Van Der Vegt

Warring factions inside the CFMEU have reached a settlement, opening the way for the mining and energy division to hold a ballot of members on whether to split from the union.

The proposed deal between the construction and general division and the rival mining and energy division has been presented by their lawyers to the Fair Work Commission.

Dave Noonan, national secretary of the construction and general division, confirmed discussions with the mining and energy division had been positive, and the matter had been relisted by the commission for March.

After losing an initial attempt to split from the union on technical grounds, the mining and ­energy division made a new application to the commission that relied on contentious changes introduced by the Coalition in 2021.

Under the changes, the commission can accept an appli­cation made more than five years after their merger, but the mining division has to document the construction division’s record of not complying with workplace or safety laws.

In evidence tendered to the commission in September, the mining and energy division said the construction and general division had engaged in 145 contraventions of the Fair Work Act. In contrast, it said mining and energy had been involved in one instance of contraventions and penalties.

In a reply submission, the Construction, Forestry, Maritime, Mining and Energy Union sought to stop the mining and energy division, citing its record of not complying with workplace or safety laws.

Under the proposed settlement, the construction and general division will withdraw its objections to the demerger if the rules changes proposed by both parties are accepted by the commission.

If the demerger is backed by members, the new Mining and Energy Union will have more than $120m in assets.

The manufacturing division is separately seeking to split from the CFMEU, and wants to be known as the Australian Production Industries and Finishing Trades Union. It proposes to have 9611 members and just under $5m in assets.

According to the mining and energy division, the construction and general division has $122m in net assets and total comprehensive income earned of $10.78m.

If members of both divisions vote to split, the rest of the union could be known as the Construction and Maritime Union, or the CMU.

In August, the union’s former national secretary, Michael O’Connor, attacked the union as a “horror story” and said the manufacturing division wanted to break away from the “completely dysfunctional” union.

Mr Noonan hit back at Mr O’Connor, accusing him of sabotage and warning that legal action could be taken to retrieve more than $300,000 allegedly owed to the CFMEU by the manufacturing division.

He questioned whether the manufacturing division was solvent and accused Mr O’Connor of engaging in hyperbole to damage the union name, saying it was “sour grapes” after he lost majority support as national secretary.

Mr O’Connor, who remains head of the manufacturing division, said he expected the division along with the Tony Maher-led mining and energy division to be gone from the union by next year after ballots of members were held.

“I just want to make sure people understand that we are more determined than ever to get out,” Mr O’Connor said.