CFMEU-linked fund pocketing cash: builders
South Australian builders are demanding to know how much money the Victorian CFMEU is pocketing as the union-linked workers’ entitlements fund muscles its way into their state.
South Australian builders are demanding answers about how much money the Victorian CFMEU is pocketing as the union-linked workers’ entitlements fund Incolink muscles its way into SA.
The SA Labor government is under growing pressure from the local construction industry to step in and defend the SA-based entitlements fund BIRST amid growing claims that SA building workers are being cajoled by the CFMEU into joining its preferred fund Incolink.
Incolink is the biggest workers’ entitlement and training fund in Australia but there are real concerns about how the fund disperses millions of dollars in grant money to both the Victorian CFMEU and Master Builders Victoria.
It was revealed this week that the Victorian CFMEU received $27m in grants from Incolink, which it used to build a workers’ wellbeing and training centre in Melbourne that has been valued at just $8m.
The revelation raised further questions about the opaque nature of the union’s use of money received from Incolink.
The SA Master Builders association and other state MBA branches have also been scathing about MBA Victoria’s financial reliance on Incolink and its closeness to the CFMEU, with both organisations sharing in millions of dollars of Incolink grants, and also providing board members to Incolink.
Building subcontractors in SA are afraid to speak by name but have told The Australian they believe the CFMEU is using Incolink as its new revenue stream amid declining union membership in SA.
The influence of the Victorian CFMEU became formalised in SA when the local branch was taken over by then secretary John Setka and other Victorian officials in August 2022.
One builder said the influence of the Victorian CFMEU in SA “is now more prevalent than it has ever been”.
“They are telling us word for word that if we don’t get onboard they will bring in Victorian subbies,” he said.
“It’s a case of sign up to Incolink or you don’t get any work.”
Another builder made the same claims, saying CFMEU officials had stopped workers from working at job sites to talk to them about signing on with Incolink.
“It’s become the union’s new revenue model,” he said.
“Their numbers are down in SA, but as long as they can get people signed up to Incolink the money comes back to the union anyway. They just aren’t making enough money so they need Incolink instead.”
Master Builders SA chief executive Will Frogley confirmed builders and subcontractors across the industry were “fed up” with Incolink being “pushed” onto them.
“Their insistence is relentless; they are saying that if you don’t sign up to Incolink we will destroy you,” he said. “The key question is where does all this South Australian money end up? The CFMEU has a pretty terrible record of not abiding by the law, so what makes anyone think it should be trusted with a $1bn workers entitlement fund?”
Incolink strongly defended itself against the accusations and said SA workers were shifting to Incolink because it was the best scheme of its kind in Australia.
“Incolink is the only fund in South Australia to offer dividends to workers, member services and $1500 training vouchers,” a spokesman said.
“Our trust structure protects the entitlements of South Australian construction workers by vesting individual entitlements for when SA workers need them most. Every dollar contributed in South Australia is invested in South Australia – and more. South Australian construction workers understand this and are voting with their feet.
“Since we expanded into SA in July 2022 our health programs have been delivered on 40 sites across the state supporting over 1200 workers.”
But Incolink is now coming under attack in the SA parliament with Liberal MLC Ben Hood saying it was clearly being used by the CFMEU as a cash cow.
“South Australians are entitled to straight answers,” Mr Hood said.
“How much money has already gone over the border through this arrangement? What oversight exists to stop redundancy or training funds being siphoned into union-run schemes? Why has the government been silent while an unregulated pipeline of money is being established under its watch?
“The facts are alarming. As reported in The Australian recently, since 2020 Incolink has received more than $78m in commissions from insurance brokers.
“Every insurance policy signed up for provides a clip to Incolink, which then flows back to the CFMEU under the guise of training.
“That is no coincidence: it is part of a deliberate strategy to embed this model into South Australia. Incolink are not in South Australia because they want to benefit the state or its workers – they want the cash.”
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