Labor cannot afford blue-collar unions rebellion

Veteran union officials are calling the falling out among unions over the CFMEU laws the biggest split in the union movement in decades. And that is not great news for Labor.

Labor has already lost the millions of dollars normally given to the party by the CFMEU and will lose significant Communications Electrical and Plumbing Union funding.

Veteran union officials are calling the falling out among unions over the CFMEU laws the biggest split in the union movement in decades. And with the government just months out from the federal election, that is not great news for Labor.

The Communications Electrical and Plumbing Union decision to disaffiliate from the ACTU and support a summit to consider setting up a rival union bloc reflects the deep anger felt by left-wing construction unions at the peak union body and the Albanese government.

On the other side, many union leaders remain furious at the CFMEU and its sacked officials for causing years of damage to the reputation of the labour movement, insisting the government was left with little option but to legislate the takeover of the construction division.

CEPU officials said there was deep anger among rank-and-file construction workers at the ACTU for not opposing the government-sponsored takeover and it should have fought, at the very least, for the issue to be determined by the Federal Court, not rammed through parliament.

But this argument doesn’t cut the mustard with supporters of the ACTU leadership who point to the belligerence of CFMEU officials, singling out NSW secretary Darren Greenfield for refusing to stand down after being charged in 2021 with taking bribes. He denies any wrongdoing. “It’s like the CFMEU tipped a truckload of manure on the door of the ACTU and when the leaders are stuck with the job of cleaning it up they blame them for doing so,” one union leader said.

Opportunism and double standards are not new in Labor politics. But what will concern the government and the ACTU is the determination by left-wing construction unions to ramp up their public opposition. Labor has already lost the millions of dollars normally given to the party by the CFMEU and will lose significant CEPU funding. Thursday’s disaffiliation decision alone will cost the ACTU an estimated $800,000 in lost affiliation fees.

But there could be a deeper cost. If left-wing unions are to be believed, and scepticism is required, the government is facing a major backlash from construction industry workers at the election.

Even if you discount some of the colourful rhetoric, there appears to be a risk for Labor that these workers will shift their votes away from Labor to the Greens, other minor parties and independents.

With the polls so tight, Labor can ill afford such a blue-collar rebellion.