One of Australia’s biggest unions – the Construction, Forestry and Maritime Employees’ Union (CFMEU) – is being investigated for alleged ties to criminal gangs and bikie groups in the wake of a Nine Network investigation.
The controversial head of the union’s Victorian wing, John Setka, stepped down last week before the criminal allegations surfaced.
The union’s Victorian branch has since gone into administration and handed control to the national body, with Premier Jacinta Allan condemning the CFMEU’s culture as “thuggery at its worst”.
CFMEU
The CFMEU is one of Australia’s largest unions, with more than 115,000 members nationally.
It represents workers across the fields of construction, manufacturing, and shipping (covering jobs like builders, crane operators, or port workers).
Since it was first set up as the Building Workers’ Industrial Union of Australia in 1962, the CFMEU has advocated for improving wages and conditions for its members.
Victorian CFMEU
The Victorian CFMEU is a registered member of the state branch of the Labor Party. It regularly donates to the Labor Party, giving more than $3 million during the 2022 federal election.
John Setka has been the Victorian CFMEU State Secretary since 2012. In 2019, Setka was convicted of harassing his ex-wife.
In the same year, he resigned from the Labor Party following pressure from Anthony Albanese over comments he’s believed to have made about domestic violence prevention campaigner Rosie Batty. Setka has denied the remarks.
Allegations
A recent Nine Network investigation uncovered alleged links between criminal figures and the CFMEU.
This included bikie gangs and convicted criminals being appointed as senior union delegates and engaging in alleged bribery. It also accused Setka of abusive behaviour.
Nine reported the CFMEU had allowed criminal figures to work on large government-funded projects, including Victoria’s $100 billion ‘Big Build’ road and rail infrastructure program.
CFMEU response
Setka resigned as Victorian Branch secretary last Friday before the allegations surfaced, noting he was being repeatedly questioned about wrongdoing.
Setka described the media reports as “ongoing false allegations”.
The CFMEU’s Victorian Branch has since gone into administration, handing control to the National Secretary, who will “investigate any credible allegations of wrongdoing”.
Victoria’s response
Victorian Premier Jacinta Allan has pushed for the Labor Party to cut some of its ties to the CFMEU, including removing the Victorian branch as a party member and halting political donations.
She also announced the state’s anti-corruption body, IBAC, will investigate allegations of criminal and corrupt activity.
“This rotten culture must be pulled out by its roots,“ she said.
Elsewhere
Industrial Relations Minister Tony Burke has requested advice on the next steps he can take to address the allegations against the CFMEU.
He told the ABC’s Insiders program the reports were “completely unacceptable”, and has not ruled out deregistering the union.
The allegations have also been condemned by other Labor Premiers and MPs.
Shadow Industrial Relations Minister, Michaelia Cash said: “The depth of criminal infilitration… is extremely disturbing”.
She has called for the now-dissolved construction regulator, the Australian Building and Construction Commission (ABCC) to be reinstated.
The current Government abolished the ABCC in 2023.
Cash blamed the ABCC’s abolition for giving “Setka and his allies effective control of the construction sector”.
