Advertisement

Independent administrator to overhaul ‘abhorrent’ CFMEU

Victorian police looked into 20 allegations of potential criminal activity involving the union.

Victorian police looked into 20 allegations of potential criminal activity involving the union. Photo: Getty

The federal government will appoint an external administrator to oversee the CFMEU as allegations within the powerful construction union continue to mount.

The Fair Work Commission will make a court application to nominate an independent administrator following reports of criminal misconduct and bikie links within the union’s construction arm.

It came as ACTU secretary Sally McManus said on Wednesday the CFMEU’s construction and general division would be suspended “until they are in a position to demonstrate to us that they are a well-functioning, clean union, free of any criminal elements”.

“We absolutely reiterate our zero tolerance for corruption, criminal activities, all violence … We’ll root it out,” she said.

“We will continue to do what is necessary to rid our movement of any elements like that. This union movement is resolute in our determination to do so.”

Workplace Relations Minister Tony Burke said on Wednesday the government wouldn’t stand in the way of an administrator’s appointment.

“The No.1 job of any union is to look after its members … the reported behaviour for the construction division of the CFMEU is the exact opposite of that obligation,” Burke said in Canberra.

“It’s abhorrent, it’s intolerable.

“There can be no place for criminality or corruption in any part of the construction industry.”

A Labor government took similar action in 2012 when the Health Services Union was embroiled in controversy over fraud and theft charges.

Victorian CFMEU boss John Setka quit ahead of the revelations emerging late last week.

This week, the union’s national office sent its Victorian and South Australian branches into administration and launched its own investigation. Concerns have been raised over its independence.

Burke said he had also asked the Fair Work Ombudsman to carry out a targeted review of all enterprise agreements made by the Victorian branch of the union’s construction division for the state’s big build projects.

“We’re seeking information on coercive behaviour – the government has no intention of taking any action which would put at risk the terms and conditions of employment of the workers who are covered by those agreements,” he said.

“This is not their fault.”

Also on Wednesday, NSW Premier Chris Minns asked the state’s Labor general secretary to suspend its affiliation with the CFMEU following corruption claims.

Nine newspapers reported on Wednesday that a police camera hidden in the ceiling of the CFMEU’s Sydney office caught NSW secretary Darren Greenfield accepting a bundle of cash in 2020.

The money was allegedly a kickback from a building company representative in return for union backing of a project. Greenfield denies the allegations, which remain before court.

“The revelations that have come to light this morning are appalling,” Minns and Treasurer Daniel Mookhey said in a statement.

“There is absolutely no tolerance for criminal or corrupt behaviour in the building industry, in unions or anywhere for that matter.

“It is clear the CFMEU construction and general division will not, and cannot, clean itself up.”

In Brisbane on Wednesday, Prime Minister Anthony Albanese said the federal government would legislate to force independent administrators on the CFMEU’s east coast branches if the union tried to challenge the appointment.

He said the government “had acted swiftly” and administrators would be appointed to the Victorian, NSW and Queensland branches, which would also cover Tasmania and South Australia.

“We see wrongdoing, and we have acted. We’ve acted swiftly to ensure that administrators are put in,” he said.

“If there’s any challenge to that, we’re certainly prepared to legislate to ensure that that occurs, but we think this is necessary. Part of that will be a suspension as well from engagement in the Labor Party, and that will occur through the national executive, which will be convened.”

FWC general manager Murray Furlong said his organisation was looking carefully at the allegations.

“I am deeply concerned about the alleged conduct and commentary that organised crime has infiltrated several state branches of the division, including that it appears to be embedded and ongoing,” he said.

“I have already initiated a wide range of operational activities, including seeking advice on making an application to the Federal Court.

“I have also commenced sharing information with other regulatory and law enforcement authorities and requesting evidence about alleged contraventions from a wide variety of participants in the building and construction industry.”

Burke has also written to Australian Federal Police Commissioner Reece Kershaw to request the AFP investigate the allegations against the union and “work co-operatively” with state police.

-with AAP

Topics: CFMEU
Advertisement
Stay informed, daily
A FREE subscription to The New Daily arrives every morning and evening.
The New Daily is a trusted source of national news and information and is provided free for all Australians. Read our editorial charter.
Copyright © 2025 The New Daily.
All rights reserved.