NSW premier moves to suspend CFMEU from Labor Party, stop all political donations

The NSW government will attempt to oust CFMEU state secretary Darren Greenfield through the courts or take the matter to parliament after images showing him allegedly receiving a $5000 cash bribe sent shockwaves through the Labor Party.

Premier Chris Minns has suspended the embattled CFMEU’s affiliation with the state Labor Party, saying the revelations demonstrate the union was “unable and unwilling” to remedy alleged criminal behaviour.

NSW Premier Chris Minns has moved to suspend the CFMEU from the Labor Party.Credit: Kate Geraghty

After the Herald published images of Greenfield being passed a $5000 bundle of cash as part of a suspected kickback deal, the NSW government was on Wednesday preparing to remove him through the Industrial Relations Commission.

Greenfield has been charged by NSW Police over the allegations, and denies wrongdoing. There is no suggestion that Greenfield is guilty, only that it is unusual for the leader of an organisation to stay in the role after being charged with corruption. The matter is yet to proceed to trial. The Herald first published details of the allegations in September 2021.

Minns said on Wednesday he had written to party headquarters in Sussex Street to suspend the construction division of the CFMEU, saying the alleged impropriety exposed on the front page was “completely intolerable” and an “affront … to trade unionists”.

“We’ve decided to take what is obviously extraordinary action but absolutely necessary in the circumstances,” he said.

Minns said he had been waiting for the union to explain the vision or proffer Greenfield’s resignation, but “absolutely nothing has been forthcoming”.

“We are left with no alternative other than to take what is unprecedented action in NSW … as a result of the fact that the CFMEU are either unable or unwilling to reform themselves,” he said.

As Greenfield resisted pressure to step down, senior government sources speaking on condition of anonymity said an application for an administrator to replace the NSW CFMEU’s leadership would be lodged later this week. If this failed, the government would consider legislative means either by recalling parliament or waiting until the next sitting week.

Acting Opposition Leader Damien Tudehope called for the NSW Labor Party to donate all affiliation fees paid by the CFMEU since Greenfield was charged in 2021, labelling the proceeds “tainted money”.

Tudehope called for a royal commission with broad powers to examine whether the allegations of impropriety levelled against the Victorian branch of the CFMEU were also rampant within NSW.

Images show Darren Greenfield allegedly taking a wad of cash under a table (left) and then putting it in an office drawer (right).Credit: Fairfax Media

“So make no mistake, this is a union which has engaged for a long period of time in illegal activity. The material which has been disclosed over the last three days make the decision to have a royal commission self-evident,” he said.

The NSW fallout comes after a major investigation by this masthead, The Australian Financial Review, and 60 Minutes, revealed fresh allegations in Victoria regarding CFMEU assistant secretary Derek Christopher, who is positioning to replace former boss John Setka.

The NSW CFMEU’s suspension came with the federal government also seeking to appoint an independent administrator to investigate criminal elements within the union after concerns were raised about gang-affiliated figures gaining access to major government infrastructure projects.

The suspension is expected to cause a structural shift within Sussex Street, as the CFMEU is the centre of power for the Soft Left faction.

Several senior Labor MPs who spoke to this masthead on the condition of anonymity to speak freely about party matters said it would create serious issues for the faction, particularly MLC Anthony D’Adam, a member of the Soft Left, who is up for pre-selection in 2026.

A supporter of Greenfield and backed by the CFMEU, D’Adam’s criticism of his party over its position on the war in Gaza has rankled senior members of the government, including Minns, who sacked him as a parliamentary secretary in May.

“The CFMEU is the heart of their support base, and they just lost it,” a senior Labor source said.

One member of the Soft Left said an in-principle agreement with the Hard Left, Prime Minister Anthony Albanese’s faction, providing the sub-faction with a third of available committee positions was now in question.

“Anthony [D’Adam] is in a lot of strife,” the source said. D’Adam declined to comment when contacted.

As part of its response to this masthead’s investigation, Minns said he would ask the federal government to review any enterprise bargaining agreements (EBA) in NSW which the CFMEU is party to.

The investigation revealed Christopher had received an estimated $200,000 in free labour and supplies from major building companies in 2017 and remained the subject of a police corruption probe.

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