The Australian Labor Party has announced it’s cut ties with the CFMEU’s construction wing, one of Australia’s biggest union bases.
It means the party will stop taking donations from that part of the union, which is facing multiple investigations into alleged corruption after a recent Nine Network investigation.
Unions across a wide range of sectors donate millions of dollars to Labor but… why?
History
Unions began emerging during the Industrial Revolution (from around 1750). On behalf of workers, unions champion better rights, working conditions and pay for their members.
Labor’s origins can be traced back to the 1890s. One of its founding principles was to fight for the rights of workers.
Unions were instrumental in helping the party launch itself as an organised political force in Australia.
20th century
Labor and unions have historically maintained a close relationship. The Liberal-National Coalition has openly criticised these ties.
For example, in 1963 former Coalition Prime Minister Robert Menzies claimed a group of “faceless men” controlled the Labor Party, referring to outside influences like the union movement.
Union representatives can also be included on internal Labor committees. These roles can influence Labor policies at a state and federal level.
Unions have historically held influence in Australian politics, and many Labor MPs (past and present) have been affiliated with unions.
Bob Hawke (PM 1983-91) was president of the peak union body, the Australian Council of Trade Unions.
Julia Gillard (PM 2010-13) headed the Australian Union of Students in 1983.
Bill Shorten is a life member of the Australian Workers’ Union, while Home Affairs Minister Clare O’Neil is part of the Australian Workers’ Union and United Workers’ Union.
Unions today
Workers who want to join a union pay a regular membership fee, which is based on a person’s income and work type (part-time, full-time) and varies across industries.
Fees can go towards having a representative help settle workplace disputes with employers. For example, a union representative can accompany an employee to a meeting with their employer to help resolve a grievance.
Unions also help negotiate wages for workers in certain industries, in a process called “collective bargaining”.
Drift
The power of unions has declined in Australia. The proportion of workers who are union members has dropped from nearly 50% in 1976 to roughly 12.5% in 2022, according to data from the Australian Bureau of Statistics (ABS).
Labor holds regular national and state conferences where policy positions are debated and voted on by delegates.
Party conferences were once dominated by union officials (85% before the 1970s). Nowadays, they make up half of the delegates — reflecting a broader decline in union membership numbers.
Candidates
Before an election is held, national and state-based administrative committees help decide who Labor will put forward as its candidates.
These committees are made up of a mix of Labor MPs, former politicians, party officials, as well as key union figures. This means unions can have a say in determining who represents Labor in parliament.
For example, Labor’s NSW administrative committee includes senior officials from the retail, electricians and services unions.
Donations
Unions donate significant amounts of money to the Labor Party.
According to figures from the Australian Electoral Commission, the Australian Workers’ Union (AWU) gave more than $500,000 to the federal Labor Party in the 2022/23 financial year.
In the 2021/22 financial year, when the last federal election was held, the CFMEU donated more than $3.4 million to the Labor Party.
CFMEU
This week, Labor announced it will cut ties with the CFMEU’s construction wing, which is facing multiple investigations into alleged corruption after a recent Nine Network investigation.
The Labor National Executive, the main organ that oversees the party nationally, has also blocked funding from the CFMEU’s construction division.
