Master Builders Association splits over CFMEU support

The South Australian branch of the Master Builders Association has hit out at Victoria’s ‘appalling’ role in supporting the construction union.

Former Victorian CFMEU secretary John Setka and construction workers receive their booster Covid jabs in 2022. Picture: David Crosling

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A major split has emerged within the Master Builders Association, with its Victorian branch being denounced for its “appalling” role in supporting the CFMEU and reaping millions of dollars in funds from its workers entitlements arm Incolink.

National tensions within the MBA were made public on Thursday when the South Australian MBA denounced the ­Victorian arm of the construction group for being in bed with the militant construction union.

With the SA branch of the CFMEU now insolvent after its formal takeover by Victoria, SA builders have been fighting a rearguard action to prevent the encroachment of Victorian-based entitlements scheme Incolink into SA.

Incolink is run jointly by the CFMEU and MBAV and until last July counted ousted CFMEU construction boss John Setka as a board member.

It has channelled millions of dollars back into the Victorian CFMEU and MBAV in what many MBA members outside of Victoria regard as a cosy arrangement with limited transparency over the disbursement of cash.

The trigger for the attack by the SA MBA was the revelation that the Albanese government had awarded a $5.5m grant to ­Incolink this month to promote greater gender equity in the construction industry.

Will Frogley CEO MBSA at a housing construction project in Adelaide. Picture: NewsWire / Roy VanDerVegt

SA MBA chief executive Will Frogley told The Australian he could not comprehend how the federal government would award any money to a CFMEU-aligned and operated entity such as Incolink given that the union was in administration.

“Is the CFMEU really the right sort of organisation for any of this money to be going to?” Mr Frogley asked.

“Why on earth is the federal government giving any money to an organisation that is in trouble over very serious issues? This is an organisation that pays the Victorian CFMEU tens of millions of dollars every year.

“Since the Victorians took over the SA branch of the CFMEU a few years ago they have tried to force local builders and subcontractors to pay into this fund because that means more money going back to them. When they have had bad luck forcing people in SA to sign up to this fund they’ve just brought in Victorian subcontractors who they’re closely aligned with. It’s absolutely disgraceful.”

But Mr Frogley saved his greatest criticisms for his own ­organisation, taking aim at its Victorian arm and echoing the concerns of other MBA state divisions over Victoria’s closeness to the construction union.

“What is really concerning and what we absolutely call out in South Australia is the appalling role of the Master Builders Association of Victoria,” he said.

“They are absolutely as thick as thieves with the CFMEU over there. You won’t hear them criticise the CFMEU over anything. And they’re a massive beneficiary of this Incolink fund as well.

“They sit on the board with the CFMEU. They negotiate the rates in the enterprise agreements with the CFMEU. It’s been very financially beneficial for them to cuddle up with the CFMEU and quite frankly in SA we think that’s absolutely appalling.”

MBAV did not respond to a request for comment.