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The Victorian and NSW Labor governments are distancing themselves from the Construction, Forestry and Maritime Employees Union (CFMEU) calling for implicated officials to stand down and a ban on donations from the powerful union.
Nine published a series of damning newspaper and television reports following a months-long investigation into criminal links in the construction division of the CFMEU.
The reports alleged bikies and criminals are acting as CFMEU delegates employed on federal and state government-funded projects.
It’s also alleged that a convicted criminal and bikie figure appointed as a CFMEU official used a car assigned to a Victorian taxpayer project to engage in gang activities, and that former Victorian CFMEU boss John Setka corresponded with Melbourne underworld figure Mike Gatto.
Ahead of the reports, Setka immediately stood down from his position on Friday, citing “false accusations” and “malicious attacks”.
What has the Victorian premier said?
The allegations have been referred to Victoria Police and the state’s anti-corruption watchdog, with the state government vowing to toughen anti-bikie laws and establish an independent review to strengthen the powers of state agencies.
Victorian Premier Jacinta Allan has called for the construction arm of the CFMEU to be dumped from the Victorian Labor Party.
“What we have seen here in recent days isn’t unionism, it’s thuggish, unacceptable behaviour at its worst,” Allan told reporters on Monday.
“The union itself has acknowledged that it needs to fix its conduct and shouldn’t have anything to do with the Victorian branch of the Labor Party until it does.”
Allan will also ask the Victorian Labor Party to immediately stop accepting political donations from the CFMEU.
How have others reacted?
NSW Premier Chris Minns said his state’s CFMEU secretary Darren Greenfield “should go” while facing bribery charges.
“Clearly these are very serious charges,” he said.
“They’re before the court, they couldn’t be more serious, and it’s hard to think or see how he can continue in that role.”
Minns said there was no room for criminality in the construction sector and any allegations made to NSW agencies would be referred to the state industrial relations inspectorate.
Workplace Relations Minister Tony Burke labelled the allegations of bikies acting as union delegates and links between construction projects and organised crime as “abhorrent”.
The Business Council of Australia has called for a “full, frank and independent” judicial inquiry, saying the CFMEU should not be allowed to take any government contract before a proper investigation into the allegations.
“An inquiry of this nature would have the power to compel documents and witness, which is critical if we are to genuinely get to the bottom of how union officials and criminal organisations have allegedly worked together to profit from government and taxpayer-funded projects,” Business Council chief executive Bran Black said.
“All Australians suffer when unions undertake this sort of alleged behaviour, drastically pushing up building costs and making it so much harder to buy a home when we are already in the grip of a cost of living crisis.”
What have been the reactions from the CFMEU?
The national executive of the CFMEU has put the Victorian branch into administration and its national secretary Zach Smith said he opposed calls for it to be deregistered.
“We should be careful about denying workers and construction workers a voice in the political process,” he told the Australian Associated Press.
Smith said he didn’t know how any potential termination of an enterprise bargaining agreement would work on a practical level.
The union will co-operate with any police and corruption investigations but the donations ban was not a priority for him at this point, he said.