The Federal Government has announced an external administrator will be appointed to overhaul the CFMEU — one of Australia’s biggest unions — due to its alleged criminal links.
Following an investigation by the Nine Network, Australia’s peak building union is being investigated for alleged ties to criminal gangs and bikie groups.
Workplace Relations Minister Tony Burke called the allegations “abhorrent” and “intolerable”. The Fair Work Commission (FWC) will now appoint an independent official to take control of CFMEU operations.
Here’s what that means.
CFMEU
The Construction, Forestry and Maritime Employees Union (CFMEU) represents more than 115,000 workers from sectors including construction, manufacturing, and shipping. The CFMEU has national, state, and territory branches.
A recent Nine Network investigation uncovered alleged links between criminal figures and the CFMEU’s construction division.
This included giving people with known criminal convictions positions of power to oversee government-funded construction projects.
Nine also accused the Victorian CFMEU State Secretary John Setka of abusive behaviour.
The union now faces multiple investigations, including from the Australian Federal Police.
Ahead of the allegations surfacing over the weekend, Setka resigned. However, he described the media reports as “ongoing false allegations”.
The union regularly donates to the Labor Party at a federal and state level. For example, in the 2021/22 financial year, the CFMEU donated more than $3.4 million to Federal Labor.
Administrator
When an organisation goes into administration, independent officials are appointed to take over operations. These administrators are tasked with analysing how an organisation has been running to recommend changes for its survival.
Unions are regulated by the FWC, which is currently seeking to appoint an administrator to take over control of the CFMEU’s construction wing.
This could lead to the union’s senior leadership team, who are elected by members, being dissolved.
FWC General Manager Murray Furlong has formally notified the Government of its plans to appoint an administrator to the CFMEU in light of the criminal allegations.
Workplace Relations Minister Tony Burke said the Government fully supports the FWC’s efforts in ”cleaning out the organisation,” and stamping out any corruption or criminal ties.
Burke flagged there could be some legal barriers to the FWC taking over the CFMEU. However, he vowed to introduce laws in Parliament to get around any hurdles.
Opposition
Opposition Leader Peter Dutton has called the CFMEU “corrupt” and is pushing for the union to be de-registered — meaning it would no longer formally exist as a collective bargaining body for workers.
This would impact the CFMEU’s influence in circumstances like pay negotiations.
Burke has ruled out deregistration.
Reviews
CFMEU National Secretary Zach Smith announced an internal review of the CFMEU’s Victorian branch.
Fair Work has flagged a potential conflict of interest with Smith investigating a union he holds a leadership position in.
Victorian Premier Jacinta Allan has also asked the state’s anti-corruption agency, IBAC, to investigate criminal links in the union, and has urged the Labor Party to not accept CFMEU donations.
NSW
Since publishing the initial allegations against the CFMEU, Nine reported further evidence on Wednesday, accusing a Sydney-based union boss of accepting a bribe.
NSW Premier Chris Minns called on NSW Labor to suspend its ties to the CFMEU construction division.
The State Opposition has also asked for a Royal Commission into the CFMEU to formally investigate alleged wrongdoing.
