Up to 20 CFMEU delegates linked to bikies

CFMEU national secretary Zach Smith has promised an inquiry but refuses to criticise John Setka, former head of the union’s Victorian division, which faces allegations of criminal behaviour.

CFMEU members outside Melbourne’s Festival Hall during voting on a new EBA in June. Picture: Aaron Francis

Construction, Forestry and Maritime Employees Union national secretary Zach Smith says the union will “investigate any allegations and deal with any wrongdoing” but has refused to criticise John Setka, the former head of the union’s Victorian division.

The division faces widespread allegations of criminal behaviour.

Up to 20 CFMEU delegates in Victoria were either members of outlaw motorcycle gangs, or have links to bikies, senior union figures have admitted as its leadership defied calls by the ACTU to stand down officials under investigation for alleged criminal activity.

Meanwhile after the CFMEU national executive placed the state division into administration, Victorian Premier Jacinta Allan said she would refer allegations against the union to police and the corruption watchdog, and ask the ALP to ban political donations from the union.

Mr Smith has now promised an independent investigation following explosive allegations of criminal behaviour including corruption, bribery and links to underworld figures and bikie gangs.

According to reports published by the Nine Network, on one occasion Mr Setka visited the family home of a fellow union official where he dumped a suitcase inscribed with the message “dog”.

Responding to the allegations on Tuesday, Mr Smith said he was “surprised” by the report about Mr Setka.

“It’s not something I would have done, and I’m sure, you know, John probably regrets it,” he told ABC radio.

Mr Smith said Mr Setka’s decision to stand aside as the head of the CFMEU’s Victorian branch demonstrated his “integrity” and “credibility”.

“One thing that no one will be able to take away from John is his legacy as an industrial leader - the conditions that he’s won for workers here in Victoria, and the strength that he’s built in the Victorian-Tasmanian branch.”

Asked if he was refusing to criticise Mr Setka as he had been “handpicked” for the role by him, Mr Smith rejected the assertion.

“That’s not a fair comment at all … I came up through the ranks and served in a variety of elected roles in my own branch, the ACT branch, before becoming national secretary.”

Mr Smith also did not accept that the CFMEU had brought shame on the broader union movement.

“I’m concerned about any allegations that tarnish my union, that tarnish the movement, which is one of the reasons why myself in the National Union moved so swiftly and quickly to set up administration to set up the investigation processes,” he said.

As the Albanese government said CFMEU moves were ­wel­come but not enough, union sources said that up to 20 delegates working on Victorian projects were either members of motorcycle gangs, or had associations with bikies, although the precise number had yet to be identified.

ACTU secretary Sally McManus said the CFMEU needed to remove all delegates with links to bikies. “They should go. Every ­single one of them,” she said.

CFMEU construction national secretary Zach Smith is under pressure to clean up the union. Picture: NCA NewsWire / Martin Ollman

Speaking on Tuesday morning, Mr Smith also said the union had a “zero tolerance” for criminality within its ranks.

“We will investigate any allegations and deal with any wrongdoing and the track record of this union. The track record of the union is that we have taken action and removed people in the past that have done the wrong thing,” he told Channel Nine.

“This investigation will have independence, this investigation will draw outside expertise and legal advice and outside scrutiny to get to the bottom of any allegations.”

Asked if the union was capable of conducting an investigation into its own wrongdoing, Mr Smith rejected the assertion.

“We are capable. We are demonstrating that capability to investigate allegations and take action where there is any wrongdoing proven,” he said.

With the Albanese government threatening deregistration of the union should it fail to root out alleged corruption and criminal activities, the CFMEU boss said such an outcome would be a “disaster for workers”.

“What deregistration means is that workers in a dangerous, precarious industry like construction, overnight would have their representation stripped away and be at the mercy of unscrupulous employers [with] bad safety,” he said.

Earlier Mr Smith told The Australian he would be urgently investigating the background of delegates.

”It’s the first thing I’ll be looking at,” he said. “We are not a safe harbour for criminal organisations and I will take any steps necessary to remove criminal influence from the ranks … where it exists.”

Mr Smith is resisting ACTU calls for the union to stand down officials subject to criminal investigation. The Australian understands the ACTU wants the union’s NSW secretary Darren Greenfield stood down as well as senior Victorian official Derek Christopher, the likely successor to recently departed state secretary Mr Setka.

The ACTU executive will meet on Wednesday to examine the CFMEU’s response, and sources said disaffiliating the union from the ACTU could be considered if union leaders believed its response to the allegations was inadequate.

Mr Greenfield and son Michael were arrested and charged in 2021 after allegedly taking bribes from a construction firm in exchange for favourable treatment from the union. They have denied any wrongdoing.

Mr Smith, who described Mr Setka as a “legend” in a Facebook post to members on Monday, said the union made a decision to stand by the Greenfields more than three years ago and there was no plan to ask them to stand down.

CFMEU Victorian leader John Setka resigned on Friday. Picture: Roy VanDerVegt

ACTU secretary Sally McManus demanded the union stand down officials subject to criminal allegations and remove delegates with links to bikies. Picture: NewsWire / Martin Ollman

Police raided Mr Christopher’s home in 2017 as part of an investigation into claims that contractors supplied building materials in return for favourable treatment. He has denied any wrongdoing.

“With Derek, it’s been six years since these allegations were first raised,” Mr Smith said. “He has been through an internal union investigation at the time which found no wrongdoing.

“Everything that formed part of that investigation, as I understand it, has been turned over to police and the police in six years have still not laid any charges against Derek Christopher or anyone else.”

According to Nine newspapers, the police probe into Mr Christopher is codenamed Operation Pantile. Asked about the status of Operation Pantile on Monday, a Victoria Police spokeswoman said: “The brief of evidence is currently with the OPP. The investigation remains active and ongoing.”

Workplace Relations Minister Tony Burke welcomed the CFMEU move to put the Victorian branch into administration.

“The response so far is progress, but falls short,” he said

Asked whether Mr Christopher should stand aside, Ms Allan said while she did not want to speak about specific cases, “anyone who is subject to allegations of this nature, I would expect yes, particularly if they’re in a leadership role, should consider their position and stand aside for the duration of the investigation.”

Condemning members of the CFMEU for having engaged in “thuggish, bullying, intimidatory behaviour”, Ms Allan said she would refer allegations of corruption and criminal activity in Victoria’s construction industry to Victoria Police and corruption watchdog IBAC.

The Premier pledged to toughen anti-bikie laws preventing associations between known crim­inals, and said she would request the Albanese government use its powers under the Fair Work Act to review, and if necessary terminate, CFMEU EBAs governing Victorian construction sites to prevent criminal activity.

She has also asked Labor’s nat­ional executive to suspend the union’s construction division from the Victorian ALP, and for the party to immediately ban political donations from the union.

Ms Allan, who held ministerial responsibility for Victoria’s infrastructure “big build” from 2016 until she became Premier in September, said she would appoint an “eminent expert” to conduct an independent review to strengthen the power of state government agencies engaged with construction companies and unions, and would review the ability of the Victorian Infrastructure Delivery Authority to direct the removal of individuals with criminal associ­ations from worksites.

“What we have seen here in ­recent days isn’t unionism, its thuggish, unacceptable behaviour at its worst, that I have zero tolerance for, and has absolutely no place on any Victorian worksite,” Ms Allan said.