John Setka urges embattled union to split from Labor in surprise speech

John Setka has made a surprise speech at a dramatic delegates conference for the embattled Health Workers Union, urging them to join the rebel unions splitting from the Labor Party and the broader union movement.

Delegates who attended the gathering on Wednesday night said they were shocked to find the former construction union boss being touted as a “guest speaker”.

 A HWU delegates conference featured John Setka as a guest speaker.

Three people who attended the event, speaking anonymously to avoid reprisals, said the appearance of Setka – who resigned as CFMEU secretary ahead of the publication of the Building Bad investigation by The Age, Sydney Morning Herald, The Australian Financial Review and 60 Minutes – had prompted some members to walk out.

This masthead has been told a 70-year-old man was also allegedly left heavily bruised after being pushed up against a wall and verbally abused at the event, which was held in Preston in Melbourne’s north.

One attendee said Setka spoke about the HWU joining “rebel unions” in leaving the Labor and supporting other political parties.

“He very much spoke like he was at a construction site,” they said.

The attendee said HWU secretary Diana Asmar had blamed the media and the Fair Work Commission over allegations she approved paying millions of dollars in members’ money to a printing service and got cash back.

They said Asmar went on to accuse the commission of unfairly targeting her, and criticised Health Services Union national secretary Lloyd Williams. He has asked Asmar to stand down from the HWU during the court case, and recently successfully worked to ensure she could not spend the union’s money on her legal battle.

Another attendee said there were about 75 people at the event, but that the full number of delegates in the union should have been at least 150.

Asmar has been accused by the Fair Work Commission of allegedly stitching up a multimillion-dollar “ghost printing” arrangement, alongside her husband, David.

Health Workers Union boss Diana Asmar.Credit: Justin McManus

The commission investigation into the Asmars – revealed in The Age – alleges a printing business received $2.7 million in HWU member funds for no service, with the money instead going into private accounts, and that more than $120,000 in reimbursements were claimed without evidence of relevant business expenses.

The commission is also investigating why Setka sent $180,000 in members’ fees to the ghost-printing scheme now being probed by police.

The HWU secretary has sought to delay the trial on the possibility that police charges could be looming, losing a court battle earlier in October over the use of union funds for her legal fight.

She agreed to other concessions about providing information to the national office and not to provide direction to union staff outside their responsibilities.

Asmar has been contacted for comment. She has privately denied the claims.

Setka was also contacted for comment about his speech.

In September, Setka appeared at two large state government work sites, the Metro Tunnel and Footscray Hospital, where he delivered a controversial, expletive-laden address to a rally.

Australia’s labour movement has ruptured over the federal government’s efforts to stamp out criminality in the building industry.

Last week, the National Building Industry Group of Unions – an alliance of labour leaders in Australia’s construction industry – condemned the federal government over the forced administration of the CFMEU. It promised to hold a summit considering proposals on the future of political funding and a campaign to “restore union democracy”.

The Electrical Trades Union has already floated plans to donate to the Greens in protest over Labor’s response to the Building Bad investigation.

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