CFMEU condemns ALP’s demerger laws

CFMEU construction leader Zach Smith says the new laws set a ‘dangerous precedent’ allowing future Coalition governments to break up unions.

Victorian CFMEU leader John Setka. Picture: Roy VanDerVegt

National CFMEU construction leader Zach Smith says Labor’s decision to introduce new laws fast-tracking the manufacturing division’s split from the broader union was a “massive” mistake and a “dangerous ­precedent” allowing future ­Coalition governments to break up unions.

The government bill, introduced by Workplace Relations Minister Tony Burke following threats made against the AFL by Victorian CFMEU leader John Setka, gives manufacturing ­division members a right to vote on whether to remain within the Construction Forestry and ­Maritime Employees Union.

Mr Burke said many manufacturing division members, including workers in heavily feminised industries like textiles, did not feel properly represented by the CFMEU. “The recent threatening and thuggish behaviour of John Setka has hardened the government’s resolve to give members a choice. It’s not hard to see why those members might want to vote to leave,” he said.

As well as giving union members the choice to leave, the legislation will, if a ballot is supported, provide guidance about the kinds of workers each union will cover and include safeguards to address overlapping eligibility rules between resulting organisations.

Mr Burke said the bill prevented the CFMEU until 2034 expanding its eligibility rules to overlap with the new organisation, unless the unions agreed.

“These reforms mean manufacturing members will have a genuine say in the organisation that represents them,” he said.

“That means better outcomes for workers.”

Workplace Relations Minister Tony Burke introduced the bill on Monday. Picture: NewsWire / Martin Ollman

Mr Smith criticised the move, saying it was a deeply disappointing decision by a Labor government. “The bill restores now-repealed Coalition-era powers to undermine unions and ­singles out the CFMEU to allow a ballot after the manufacturing division’s multiple failed legal attempts to do so,” he said.

He said the federal government intervention in determining union coverage could ultimately hurt workers. “This bill risks setting a dangerous precedent for anti-worker ideologues in future Coalition governments to break up unions,” he said.

“The Fair Work Commission has ruled very clearly on this issue. Instead of accepting the umpire’s decision, we’ve now seen backroom political games trump members’ best interests.

“I’m really concerned about what this will mean for members in the manufacturing division, which is in dire financial straits after wasting money in failed legal challenges.

“We are absolutely confident those members would be better served by remaining with the CFMEU.

“Construction supply chain workers are clearly best represented by the construction union.”

The federal opposition is expected to support the bill, which allows the manufacturing division to apply by October 31 for a ballot of members, giving the government the numbers to pass it through the Senate.

Victorian building unions said almost two weeks ago that they would write a letter to the AFL supporting Mr Setka’s call for the removal of Stephen McBurney, the league’s head of umpiring and former building watchdog chief.

However, as of Monday a letter had not been sent to the league. The leaders of the state construction unions are scheduled to hold their next weekly meeting on Wednesday.

Mr Setka did not respond on Monday to requests for ­comment.