CFMEU collapses into receivership in Victoria – following allegations of criminal conduct
The CFMEU’s Victoria branch has been placed under administration following allegations of criminal behaviour and links to motorcycle gangs within the union.
Following an emergency meeting on Monday, the union’s national office will assume top executive powers and set up an independent process to investigate allegations of criminal conduct.
This came in response to media reports that criminal motorcycle gangs were acting as representatives of the CFMEU and that there were links between construction projects and organised crime gangs.
CFMEU national secretary Zach Smith said the allegations were serious and called for an unprecedented response.
“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.’
Sally McManus, general secretary of ACTU, also condemned the alleged actions, saying there was no place for criminal activity within unions.
“Such people must face the full force of the law. The ACTU calls on the national leadership to drop those who are the subject of criminal allegations,” she told reporters in Melbourne.
Allegations linking the CFMEU to organised crime have led to calls for an investigation
CFMEU chief John Setka stepped down as chairman on Friday
‘We want a well-functioning, strong and corruption-free trade union in the construction sector.’
The ACTU board will meet on Wednesday to discuss the issue surrounding the construction union.
The federal government said all options, including deregistering the CFMEU, were on the table to address the allegations.
Ms McManus said any move to deregister the union would depend on the actions the CFMEU takes to address the situation.
“It’s not just words and platitudes, there needs to be action,” she said.
Prime Minister Anthony Albanese welcomed the news that the department had been placed under administration.
“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.
“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.”
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.’
