Federal Labor cuts ties with embattled CFMEU


Placing the CFMEU into administration is in the public interest, the attorney-general says. Photo: AAP
Labor’s national executive is freezing ties with the CFMEU, as corruption accusations continue to chase the disgraced union.
The CFMEU’s construction arm has come under fire over allegations of corrupt conduct and organised crime links within its ranks, with the Fair Work Commission set to appoint an independent administrator to the union.
Several state Labor governments have already moved against the union with Queensland freezing talks, and NSW and Victoria pausing donations from the organisation.
On Thursday, the federal Labor Party followed suit.
After a national executive meeting, Labor’s national secretary Paul Erickson announced it would suspend the CFMEU’s construction branch’s affiliation to the NSW, Victoria, South Australia and Tasmanian branches of the party.
This means Labor will not accept affiliation fees or political donations from those branches.
“The No.1 job of any union and its officials is to look after its members. The reported behaviour is the complete opposite of this,” Erickson said.
The suspension is indefinite, and Labor will consider suspending affiliations with the union’s other branches if they are also sent into administration.
It comes after Workplace Relations Minister Tony Burke vowed to introduce legislation if there were any challenges to FWC efforts to put the construction branch of the CFMEU into administration.
Burke has also requested the Fair Work Ombudsman review enterprise agreements made by the Victorian branch of the CFMEU’s construction division after a request from Victorian Premier Jacinta Allan, and called the Australian Federal Police to investigate the reports.
Fair Work Ombudsman Anna Booth said on Thursday investigations into the CFMEU were continuing.
“If unlawful conduct is established we will take appropriate enforcement action,” she said.
“Improving compliance across the building and construction industry is a priority for the Fair Work Ombudsman, and we will continue to investigate reports of non-compliance and hold to account those who act outside the law.”
Fallout from the allegations has also rattled the broader labour rights movement with the Australian Council of Trade Unions moving to suspend the construction division of the CFMEU.
ACTU secretary Sally McManus said she was previously unaware of the allegations but estimated it would take years for the union to purge its alleged criminal elements and restore its name.
She also revealed she had been warned of threats to her safety after previous attempts to go after the CFMEU, but remained steadfast.
“We will do what’s necessary, I will do what’s necessary, the union leadership will do what’s necessary,” she said.
“We will not flinch.”
McManus said the former Victorian head of the CFMEU John Setka, who resigned as the first allegations emerged late last week, had been against the ACTU.
“John Setka hates our guts, he hates my guts, [president Michele O’Neil’s] guts,” she said.
“For the last five years, John Setka’s union has been isolated from the ACTU. We had no idea of … the alleged infiltration by criminal elements. We thought he did not uphold union principles and that he was someone who pursued vengeance.”
Shadow treasurer Angus Taylor reiterated calls for the building and construction sector watchdog to be reinstated, saying the steps to place the CFMEU into administration were not enough.
“I seriously doubt that anyone can deal with the CFMEU in its current form, because at the end of the day, it’s rotten to the core,” he told ABC Radio.
-with AAP