Current track

Title

Artist

Background

Union branch shut down after crime claims

Written by on July 15, 2024

The beleaguered Victorian branch of a major construction union has been placed into administration following allegations of criminal links, severe bullying and intimidation.

The decision was made during an emergency meeting of the Construction, Forestry and Maritime Employees Union (CFMEU) on Monday morning, with the national office set to assume senior executive powers.

A leading legal figure will also oversee an investigation into allegations put against the Victorian branch.

CFMEU national secretary Zach Smith said the trade union had “zero tolerance for criminality”.

“The CFMEU has one purpose and one purpose only and that is to defend and advance the safety and conditions of workers,’ he said.

“The Victorian branch has been hugely successful in pursuing this purpose, but the national executive also recognises that a number of recent allegations are serious and demand an unprecedented response.”

The union was plunged into disarray following a joint ongoing investigation by 60 Minutes and Nine Newspapers, with former Victorian secretary John Setka announcing his resignation on Friday.

The claims of misconduct also include allegations that bikies and members of organised crime outfits were hired as union delegates and allowed on government-funded construction sites.

To date, Mr Setka has denied the allegations and said the “ongoing false allegations” harmed the “work this great union does for its members”.

In light of the controversy, Prime Minister Anthony Albanese and Workplace Minister Tony Burke have threatened the CFMEU with deregistration, both stating “nothing is off the table”.

“We will take whatever action is appropriate but where there are breaches of the law, such as people offering bribes, those people need to be prosecuted by the law,” Mr Albanese told ABC Radio Melbourne on Monday.

“That’s not a political decision. That’s a legal one.”

While the criminal allegations are being investigated by the state and federal police in a joint probe, the Australian Labor Party is also facing increasing pressure to pause donations it receives from the CFMEU.

The construction body makes up more than a third of Labor’s union-declared donations.

While asked repeatedly on Monday, Mr Albanese wouldn’t directly address whether donations would continue, reiterating that “everything’s possible”.

“The people who are working on construction sites around Australia are hardworking Australians. they shouldn’t be tainted with this sort of corrupt behaviour,” he said.