The National Secretary of the CFMEU’s Construction and General Division has hit back at claims of criminality infiltrating the trade union’s Victorian branch.
Yesterday (15 July 2024) the Construction, Forestry, and Maritime Employees Union (CFMEU) Victorian branch was placed into administration following an emergency meeting of national executives amid allegations of underworld figures purportedly infiltrating various construction projects.
Victorian Premier Jacinta Allan has taken a tough stance against what she labels is “self-interested thuggery” and “rotten culture” on the back of allegations of corruption and criminal activity.
In a blanket statement sent to Mining.com.au addressing the matter, National Secretary CFMEU, Construction and General Division Zach Smith says placing the Victorian branch administration and having the national office assume all senior executive powers is an “unprecedented” decision.
The CFMEU says this is the first time in the union’s history that this kind of action has been taken. In a response to members, Smith adds that “cancel culture will never be our culture”.
“This decision has not been taken lightly. 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,” Smith says in the statement.
“However, we have zero tolerance for criminality. Anyone found to have engaged in criminal conduct while representing the CFMEU will be identified and removed. Our union exists for one purpose only: to defend and advance the safety and conditions of workers.
“The Victorian branch has been immensely successful in pursuing this purpose. I want to pay tribute to John Setka for his incredible achievements as Victorian secretary. He is a legend of our union who leaves an enormous legacy. However, recent allegations are serious and demand a thorough response.”
Smith says while the national office addresses these allegations, “it is essential to recognise that smearing officials and delegates based on their histories or personal relationships is completely unwarranted”.
“Cancel culture will never be our culture. Our union has always believed in second chances, and we continue to believe in second chances. We will never tear down an official who is doing a good job for construction workers simply because they are seen as unsavoury by people who have never set foot on a site,” he says.
“We will never turn our backs on people who want to help workers, regardless of their past.”
Mining.com.au reached out to other CFMEU branches and the Australian Council of Trade Unions (ACTU) for comment, and did not respond before going to press.
The ACTU is the largest peak body representing workers in Australia. It is a national trade union centre of 46 affiliated unions and eight trades and labour councils.
Master Builders Australia says the investigations into the operations and underworld links within the CFMEU confirms what the service provider has already known.
“Union representatives with a comprehensive disregard for the law and the industry it claims to represent,” Master Builders says.
Master Builders notes that these allegations have been heard from builders on the ground in the past and it shows how the industrial relations system in building and construction is “broken.”
The industry association has made several recommendations that should be actioned to support addressing these allegations, such as establishing a cross-jurisdiction police strike force to investigate the allegations which is sufficiently sourced.
In addition, the Fair Work Ombudsman (FWO) should begin a review of CFMEU activities, including whether recent enterprise bargaining agreements (EBAs) were agreed, as well as an Australian Competition and Consumer Commission (ACCC) investigation into activities that may be contrary to competition laws.
Master Builders also recommends that the Australian Government should introduce legislation in spring sittings that increases the powers of the FWO to hold recidivist officials and unions to account.
The company says this should incorporate reviews being conducted on whether officials and registered organisations should continue to hold their existing status and provide further protection to complainants who are afraid to speak up with evidence, in fear of retribution.
The CFMEU Construction represents more than 100,000 construction workers and its main focus is to protect lives by upholding health and safety standards in the industry, as well as improve the livelihoods through fighting for decent wages and conditions.
Master Builders Australia says the investigations into the operations and underworld links within the CFMEU confirms what the service provider has already known.
“Union representatives with a comprehensive disregard for the law and the industry it claims to represent,” Master Builders says.
According to Master Builders Australia, these allegations have been heard from builders on the ground in the past and shows how the industrial relations system in building and construction is “broken”.
“The CFMEU accounts for less than 10% of industry participants but their unyielding stranglehold on builders, subbies, and clients has gone on for long enough,” Master Builders says in a 14 July statement.
“The investigation confirms what we have heard from builders on the ground, ongoing coercion and bullying tactics employed by union representatives to accept pattern EBAs conditions including who they can and can’t hire on site.”
Master Builders notes there have been four royal commissions, hundreds of court judgments, and dozens of other reports and independent inquiries that forensically examined allegations of unlawful and illegal conduct of building unions.
“They all reached the same conclusion – there are problems unique to building and construction, and therefore there is a need for an industry-specific workplace regulator or specific rules for the industry,” Master Builders says.
The industry association has made several recommendations it wants actioned to address these allegations, such as establishing a cross-jurisdiction police strike force sufficiently resourced to investigate such allegations.
Additionally, it recommends the Fair Work Ombudsman (FWO) should begin a review of CFMEU activities, including whether recent enterprise bargaining agreements (EBAs) were agreed, as well as an Australian Competition and Consumer Commission (ACCC) investigation into activities that may be contrary to competition laws.
Master Builders also recommends the Australian Government should introduce legislation in spring sittings that increases the powers of the FWO to hold recidivist officials and unions to account.
This should incorporate reviews being conducted on whether officials and registered organisations should continue to hold their existing status and provide further protection to complainants who are afraid to speak up with evidence, in fear of retribution, it adds.
Master Builders is the peak body and national voice of the $200 billion building and construction industry, representing eight state and territory Master Builders Associations and 32,000 members nationwide.
The Roundup
– CFMEU National Secretary Zach Smith says “we have zero tolerance for criminality”
– MBA calls on FWO to review CFMEU activities, wants legislation introduced
Write to Aaliyah Rogan at Mining.com.au
Images: CFMEU
