The Victorian branch of the CFMEU has been placed under administration following allegations of criminal behaviour and links to motorcycle gangs within the union.
Union members held an emergency meeting on Monday after allegations emerged that members of criminal motorcycle gangs were acting as CFMEU representatives and as a link between construction projects and organised crime gangs.
The union’s national secretary, Zach Smith, said the national office will assume the powers of the highest board and establish an independent process to investigate criminal allegations.
“The CFMEU has zero tolerance for criminality of any kind. Anyone found to be engaging in criminal behaviour whilst representing the CFMEU will be identified and removed,” Mr Smith said.
‘The CFMEU has one goal and one purpose only: to defend and improve the safety and working conditions of workers.
‘The Victoria Department has been very successful in achieving this goal, but the National Board also recognises that a number of recent allegations are serious and require an unprecedented response.’
Prime Minister Anthony Albanese welcomed the news.
“That’s a good next step, but we need more action. We need to make sure that this results in isolation and that there is both legislative action and union action,” he told ABC radio.
Allegations linking the CFMEU to organised crime have led to calls for an investigation
CFMEU chief John Setka stepped down as chairman on Friday
“I have a very clear message for the CFMEU, and that is that they need to get their act together. I will not tolerate that at all.”
John Setka, the head of the CFMEU’s Victorian branch, resigned on Friday night, but not before describing the reports as “false allegations” and “malicious attacks”.
The prime minister said the allegations amounted to a betrayal of union members.
“Where there are violations of the law, they should be prosecuted to the fullest extent possible and people should be held accountable,” he said.
“I have contempt for someone like John Setka, he has no legitimate role in the labor movement.”
Mr Smith said while allegations of misconduct should be investigated, union officials should not be tarred with the same brush.
“Cancel culture will never be our culture,” he said.
‘Our union is active in a tough sector, where people are seriously injured or killed every week and where shady project developers and contractors have free rein.
“The national office will be relentless in cleaning up any abuses we find, because we know that workers depend on the strength and effectiveness of our union.”
On Sunday, Industrial Relations Minister Tony Burke said all options should be on the table regarding dealing with the union, including deregistering the union.
Shadow Finance Minister Angus Taylor said the government, like the Labor Party, should stop taking donations from the union, deregister the CFMEU and re-establish the Australian Building and Construction Commission, which was abolished in 2023.
“Actions speak louder than words,” he told Nine’s Today program.
‘And the Labor Party is very close to the CFMEU.’
The Business Council of Australia wants a “full, fair and independent” judicial investigation into the union and believes the CFMEU should be immediately banned from accepting government contracts.
“An investigation of this nature would have the power to subpoena documents and witnesses, which is critical if we are to truly get to the heart of how union officials and criminal organizations allegedly worked together to profit from government- and taxpayer-funded projects,” said Board Chairman Bran Black.
‘All Australians suffer when unions engage in this kind of alleged behaviour, dramatically increasing building costs and making it much harder to buy a home at a time when we are already in the grip of a housing cost crisis.’