Victorian Premier Jacinta Allan has called on the party’s national executive to cut Victorian Labor’s ties with the CFMEU immediately.
It comes after a joint investigation alleged that organised crime and gang bikie members secured roles as delegates for the construction division of the Construction, Forestry, and Maritime Employees Union (CFMEU) in Victoria.
Ms. Allan described the allegations as “self-interested thuggery at its worst.”
“This rotten culture must be pulled out by its roots,” she said in a statement on July 15.
“The union needs to fix its conduct, and it shouldn’t have anything to do with the party until it does.
“I’ve also asked the Victorian Labor Party to pause donations from the CFMEU immediately.”
The reported allegations by Nine Newspapers have also been referred to police and the state’s anti-corruption commission.
Ms. Allan also pledged to work with the prime minister to “stamp out” similar situations from occurring again.
“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 to 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.”
The former head of CFMEU’s construction division, John Setka, resigned on July 12, the day before the reports were published.
When stepping down, he called the allegations false.
“These stories have been constant, and while I’ve been the target of many of them, enough is enough,” he said.
“If my stepping down can stop these malicious attacks on our members and officials and allow this great union to continue to fight for our members, their wages and conditions so that they go home safely to their families each day, then I’m happy.”
CFMEU’s national secretary, Zach Smith, announced on July 15 that the Victorian branch will be put into administration, with the national office to assume all senior executive powers.
“We will establish an independent process to investigate any credible allegations of wrongdoing. This is the first time in our union’s history that such an action has been taken,” he said.
“However, we have zero tolerance for criminality. Anyone found to have engaged in criminal conduct while representing the CFMEU will be identified and removed.”
The Australian Council of Trade Unions (ACTU) also said it would not tolerate anyone who used unions for criminal activity.
“Such people should face the full force of the law,” the ACTU said in a statement.
Federal MPs Respond
Prime Minister Anthony Albanese said it was “good” that Mr. Setka resigned and condemned the allegations in the “strongest possible terms.”“The job of a union is to defend the wages and conditions of their members, to make sure as well on building sites—the construction industry is a dangerous industry—we want people to go home at night to their families and unions have an important role to play there,” he told ABC Radio Melbourne.
“What this is, is a betrayal of those union members.”
“It is an indictment of the leadership of the CFMEU that they haven’t been held to account,” he added.
In 2019, Mr. Albanese, then newly appointed Labor leader, led a successful campaign to expel Mr. Setka from the party.
Meanwhile, Workplace Relations Minister Tony Burke is seeking advice on the powers available to address the issue.
“I’ve sought advice on all my powers, including [deregistering the union division], including appointing administrators to the different branches. I’ve sought advice on all those powers. I’m not taking anything off the table,” he said on ABC Insiders.
However, Opposition Leader Peter Dutton called for Labor to return all the donations it has received from the CFMEU in recent years, and for the prime minister to deregister the union immediately.
“The prime minister’s weak leadership has enabled the out-of-control CFMEU to reach a point where we now see startling allegations that the union has been deeply infiltrated by bikies, gangland, and underworld criminal figures,” he claimed.
