CFMEU’s national executive places Victorian branch into administration
Jacinta Allan has referred allegations of criminal behaviour inside the CFMEU to Victoria Police and the Independent Broad-based Anti-corruption Commission.
Victorian Premier Jacinta Allan has referred allegations of criminal behaviour inside the CFMEU to Victoria Police and the Independent Broad-based Anti-corruption Commission.
Ms Allan on Monday also said she had asked Labor’s National Executive to immediately suspend the CFMEU construction division from the Victorian Labor Party.
“The union needs to fix its conduct and it shouldn’t have anything to do with the party until it does,” Ms Allan said.
“I’ve also asked the Victorian Labor Party to immediately ban political donations from the CFMEU.”
Ms Allan pledged to stamp out the behaviour in Victoria.
Ms Allan said while the conduct of unions was regulated under federal laws, rather than state laws, she would join forces with the Prime Minister and “do whatever needs to be done”.
“We will toughen anti-bikie laws to make it easier for police and courts to prevent certain individuals from associating with each other,” she said.
“We will request the federal government exercise its powers under the Fair Work Act to review- and if necessary, terminate- CFMEU enterprise bargaining agreements on Victorian construction sites to prevent criminal activity.”
Ms Allan said her government would undertake an independent review to strengthen the power of Victorian Government agencies that are engaged with construction companies and unions.
“This review will be led by an eminent expert and be conducted in consultation with the Federal Government,” she said.
“We will also review the ability of Victorian Infrastructure Delivery Authority (VIDA) to direct the removal of individuals with criminal associations from worksites.”
Victorian branch placed into administration
The Premier’s announcement came as the CFMEU placed its troubled Victorian branch into administration and set up an inquiry to investigate allegations of wrongdoing.
As the Albanese Government considers deregistration of the union’s state construction division, the union announced an emergency meeting of its national executive had taken the “unprecedented” decision to put the branch into administration.
CFMEU National Secretary Zach Smith said the union’s national office would assume all senior executive powers of the Victorian branch.
“The National Office will be uncompromising in cleaning up whatever wrongdoing we find because we know that blue collar workers depend on our union being strong and effective,” he said.
Mr Smith said the union would “immediately establish an independent process, overseen by a leading legal figure, to investigate any credible allegations of wrongdoing”.
“The CFMEU has zero tolerance for criminality and anyone found to have engaged in criminal conduct while representing the CFMEU will be identified and removed,” Mr Smith said.
The move follows the early resignation of state secretary John Setka on Friday ahead of 60 Minutes investigation that detailed alleged infiltration of the union by bikies and underworld figures.
Mr Smith said although serious allegations of wrongdoing demanded a serious response, “general smearing of officials and delegates because of their histories or personal relationships was completely unwarranted”.
“Cancel culture will never be our culture,” he said.
“Our union operates in a tough industry in which people are badly hurt or killed every week and in which shonky developers and contractors are allowed to run rampant.
“There are corporates and right-wing politicians who want our union to go away and they’re not motivated by any actual ethical concerns, they just don’t believe blue collar workers deserve decent pay or proper safety standards on site.”
ACTU secretary Sally McManus has called to the CFMEU to stand down officials subject to criminal allegations and remove delegates with links to bikies.
Ms McManus said the CFMEU’s response to her call would be considered at a special meeting of the ACTU executive called for Wednesday.
Ms McManus said she did not support deregistration of the union, an option being considered by the government, and also rejected employer and opposition calls to reinstate the Australian Building and Construction Commission.
She said she was “shocked and horrified” at the allegations of criminality against the CFMEU.
She said the ACTU expected the CFMEU to stand down any officials accused of criminal activity while the allegations are investigated.
“I want to make this very clear: there is no place, no place whatsoever, for criminal activity in unions,” she said.
Bosses call for probe of CFMEU crime links
Employers are demanding the Albanese government establish a royal commission into alleged criminal behaviour inside the CFMEU, as Industrial Relations Minister Tony Burke considers deregistering the union or appointing administrators.
Amid “absolutely abhorrent” criminal activities from senior Construction Forestry and Maritime Employees Union officials, including by former Victorian construction division secretary John Setka, Mr Burke was awaiting advice from his department on the powers available to him and declared the behaviour needed to stop and wouldn’t be fixed by Mr Setka’s resignation alone.
The CFMEU’s national executive will hold an emergency meeting at 8am on Monday.
The Australian Industry Group, Australian Chamber of Commerce and Industry and Business Council of Australia called for an independent judicial inquiry or royal commission into the union’s activities, with business concerned all levels of government had been too “weak” in responding to the CFMEU.
The employer groups joined with the Coalition to push for the Australian Building and Construction Commission to be reinstated. “The allegations require federal and state governments to immediately audit the role of the union on taxpayer-funded infrastructure projects and to remove union officials with criminal organisation links,” Ai Group chief executive Innes Willox said.
“The argument supporting abolition of the ABCC that the construction industry should not be treated differently to any other industry looks more untenable than ever. Those who supported its abolition should hang their heads in shame.”
A Nine investigation has uncovered bullying, intimidation and stand-over style tactics used by CFMEU officials, as well as former leaders of bikie gangs infiltrating the union’s ranks. More allegations of high-level corruption are to be published this week.
“I want advice on all the powers that I have with respect to what we’re seeing out of the construction division of the CFMEU, in particular Victoria,” Mr Burke told the ABC’s Insiders program.
“I will effectively be looking at three things: the advice on the extent of my powers, the allegations as they are revealed and, finally, the extent to which the union itself acts immediately and effectively. If they don’t, I will … I’m not taking anything off the table.”
The departmental advice will help determine what steps Mr Burke can take, including the possibility of deregistering the CFMEU’s construction division or the entire union.
The government is cautious about using the deregistration option, after Mr Burke noted people could end up with even less regulation around them.
Despite Mr Burke refusing to bring back the ABCC, pointing out the criminal allegations levelled against the CFMEU so far had occurred during the life of the building watchdog, ACCI chief executive Andrew McKellar said abolishing it was a terrible mistake. “There’s deep concern that at some levels in government and in the political process there’s been a weak response, that you cannot give these guys a free pass. This needs to be fully and thoroughly investigated,” he said.
BCA chief executive Bran Black said: “Until these allegations are properly investigated and resolved, the CFMEU shouldn’t be able to negotiate any arrangement or contract with any government in the country.”
Acting Opposition Leader Sussan Ley said the CFMEU should be deregistered and every Labor leader needed to cease accepting donations from the union.
Victoria Roads Minister Melissa Horne said the state government had referred criminal behaviour uncovered in the scandal to police. Premier Jacinta Allan failed on Sunday to take questions on Mr Setka and covert recordings revealing union official Gerry McCrudden boasting of how the CFMEU secretly controlled the state $100bn Big Build.
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Not quite as bad as Gough but it’s close
The Albanese government provides no rationale or narrative for its disconnected actions. Everything is spin. We’ve seldom seen a government this poor in such critical fields at such a dangerous time.