Union civil war threat to Anthony Albanese

Federal Labor has been warned blue-collar workers could desert the government in an election rebellion over its CFMEU legislation, as a key left-wing union voted to break away from the ACTU.

Electrical Trades Union Victorian secretary Troy Gray says he had never seen such anger at the Labor Party among blue-collar workers, predicting many would shift their vote at the election to the Greens. Picture: NewsWire / Luis Enrique Ascui

Federal Labor has been warned blue-collar workers could desert the government in an election rebellion over its CFMEU legislation, as a key left-wing union voted to break away from the ACTU in one of the biggest splits in the union movement for decades.

The 100,000-member Communications, Electrical and Plumbing Union voted to disaffiliate from the ACTU in protest at the peak union body not opposing government legislation forcing the CFMEU’s construction division into administration.

CEPU officials called for a summit of blue-collar unions to be held within three months to form a rival bloc to the ACTU, while warning that many blue-collar workers would shift their vote at the next election from Labor to the Greens, other minor parties and independents, given their fury at the way the government pushed through the CFMEU laws.

The Australian can reveal four left-wing unions separately decided on Thursday to commit $1m towards the financing of the High Court challenge by sacked CFMEU officials to try to overturn the government’s legislation.

The brawling came as a Victorian CFMEU organiser Joel Shackleton was arrested and charged on Thursday with allegedly making threats to kill and inflict serious injury.

Victoria Police said investigators will allege a 40-year-old Beveridge man made threats to inflict serious injury on two owners of a labour hire company.

It is understood he was recorded telling an indigenous labour owner that “I’ll f---ing take your soul and rip your f---ing head off”. He was bailed to appear at Melbourne Magistrates’ Court on 22 November 2024.

Electrical Trades Union Victorian secretary Troy Gray and plumbers union Victorian secretary Earl Setches said the divisions among unions over the CFMEU legislation represented the biggest split in the union movement they had seen in decades. Mr Gray told The Australian he had never seen such anger at the Labor Party among blue-collar workers, predicting many would shift their vote at the election to the Greens.

“There’s a real ‘f..k Labor, pay back Labor’ feeling among a lot of blue-collar workers that I have never seen before,” he said. “I have never seen the anti-Labor sentiment amongst blue-collar workers that I have seen in the last two weeks and I go back 35 years in the industry.

“That’s Labor’s biggest problem at the next election. They will never, ever, ever win the vote back of those blue-collar workers.”

ETU NSW secretary Allen Hicks agreed with Mr Gray’s comments about the level of anger among blue-collar workers towards the Albanese government. “There is deep frustration and anger at the ALP for doing what they have done,” he said. “People just can’t believe that it’s being done – one, by the ALP, but, two, not to even allow the judicial process to play out which was already in train. I think there are some very worrying times ahead for the Labor Party, as we know it, because people in the construction industry, blue-collar workers traditionally have voted Labor all of their lives, and their mothers and fathers have voted Labor all of their lives.

“And now we have got a situation where they have gone and done a deal with the devil which is the Liberal Party to put the union into administration. People just cannot believe this has been done by the ALP and to the extent and the level that they have done it.”

He said some construction workers would look at voting for the Greens given it opposed the legislation but workers would also look at supporting other minor parties and independents. “It’s going to be quite difficult for a number of politicians that are sitting within the ALP in marginal seats to retain their seats,” he said.

Mr Hicks said the disaffiliation would cost the ACTU about $800,000 annually, while union members who volunteered to campaign for the ALP were “very disillusioned with the ALP in a big way now and Anthony Albanese is the one that has got to take full responsibility for that”.

Mr Setches said the ACTU’s conduct over the CFMEU was “totally undemocratic and they’ve jumped the gun”.

“We’re against corruption, no question about that but to jump the gun and play judge and jury without a proper process is just insane,” he said. “There is enormous anger at the ACTU, enormous anger from the rank-and-file all the way through the unions. What the ACTU should have done is have a fair and transparent process. There are many ways to be active – to have internal inquiries, to appoint people to positions to oversee absolute and transparent outcomes. You don’t have to just execute a whole union overnight.”

The CEPU represents electricians, plumbers and postal and telecommunications workers.

Mr Setches said this was the biggest split between blue-collar and white-collar unions he had seen in 40 years.

“I left school in 1983 and I have never seen anything like this, and for 25 years as an official of the union I have never seen anything like this,” he said. “It’s going to be hard times ahead (for the union movement). We are not going to stand for corruption. It must be investigated and if it’s happening, clean it out. It’s unacceptable but you just don’t wipe them (the CFMEU) out.”

ACTU president Michele O’Neil said the peak union body had “at all times urged the CFMEU construction division leaders to act decisively to ensure their union was free of criminal elements, corruption and violence”. “This included standing down those accused of serious criminal wrongdoing,” Ms O’Neil said. “Unfortunately those who had the power to act failed to do so. ACTU decisions are made at our executive where all unions are represented.”

Mr Gray said the ACTU’s position on the administration legislation was not acceptable to the ETU. “The Victorian construction industry is on the brink of losing the standards, and the wages and conditions that have been built up over decades. That is a direct result of the decision making and the resolutions coming out of the ACTU,” he said.

Mr Setches said the plumbing division would be financially contributing to the High Court challenge by sacked CFMEU officials to the government legislation.

He said he believed elements of the ACTU were motivated by getting “payback” against former CFMEU Victorian secretary John Setka, who has been in open conflict with the peak union body, including its secretary Sally McManus for years

He said the plumbers union would participate in the summit of blue-collar unions “and anyone who claims to be a blue-collar union should come”.

The Mining and Energy Union, which split from the CFMEU, reaffirmed support for the ACTU and does not support establishment of an alternative grouping of blue-collar unions.

The Allan government on Thursday asked Victoria Police to investigate Mr Setka’s attendance on two state government building projects in 24 hours. Mr Setka visited the Metro Tunnel project on Thursday, a day after addressing workers at the Footscray Hospital project. Premier Jacinta Allan said Mr Setka’s visits were “unlawful” and his conduct had been referred to police.