The fallout from last week’s explosive CFMEU accusations continues this week as tensions between the government and the construction union continue to escalate.
The relationship breakdown follows allegations of misconduct within the Construction Forestry Mining and Energy Union after a months-long investigation by Nine newspapers, 60 Minutes and The Age claimed the CFMEU had been parachuting criminal figures into high-paying jobs nationwide.
The expose alleged a network of organised crime members had received hundreds of thousands of dollars working on federal and state government-funded projects such as Victoria’s $100 billion Big Build road and rail infrastructure program.
The revelations have already led to CFMEU boss John Setka stepping down from his 12-year reign as the union’s head, while the government has announced plans to for an independent administrator to overhaul the organisation.
It’s a solution that has left the union angered by the government’s lack of support for claims that they say are unproven and lack evidence.
Senior government sources have claimed that backlash is expected to disrupt CFMEU-run transport construction projects over the coming days.
They anticipate that work on the Western Sydney Airport Metro line will grind to a halt later this week under the guise of health and safety issues.
The alleged construction halts could add to the pain of already planned transport strikes this week. Failed negotiations between the government and the Rail, Tram, and Bus Union (RTBU) have led to the latter scheduling planned protest action.
Political rivals cash in on Labor-CFMEU divorce
However, while the CFMEU lambasts the lack of government support, Labor is also under fire from political rivals who are demanding more action—including the union’s deregistration altogether.
Opposition Leader Peter Dutton has demanded that the government disband the construction union and return all its donations.
Meanwhile, independent MP Zoe Daniel says the appointment of an independent administrator isn’t enough, suggesting the industry may need a new watchdog.
“The toxic elements of the CFMEU absolutely have to be cleaned out. And so maybe that’s an administrator and a police investigation… and then a form of watchdog as well,” Ms Daniel told the ABC.
“Everyone has known to some degree that it has been going on, and it does feel like it has been convenient to turn a blind eye and it is now Labor’s problem. There’s risk, and they have to resolve this.”
However, the government warned deregistering the CFMEU would just see it reform in a similar capacity while potentially pushing illegal activity underground.
Labor Senator Jenny McAllister said deregistration was “not a solution,” claiming it would just allow those accused of misconduct to continue without “regulatory oversight.”
However, she confirmed that the CFMEU would remain in the party’s political doghouse until it accepted the independent administrators or they were forced upon it via parliamentary channels.
“The suspension that’s been imposed by the national executive, in fact, suspends all of the rights of the CFMEU to be part of the state branches in Victoria, in New South Wales, in South Australia, and Tasmania,” she said.
“We don’t want them to be involved in our party until it is clear that there are no criminal elements involved at all, involved actively in their union.”
Labor warns union watchdog would fail again
Calls for a return of a union watchdog with increased powers to crack down on any wrongdoing have been met with similar pushback from those in charge.
Former Australian Building and Construction Commission bosses John Lloyd and Nigel Hadgkiss backed calls from business groups and the opposition that a permanent independent regulator would be needed to prevent a relapse by the CFMEU or its potential replacement.
However, the government has widely dismissed those calls, with Senator McAllister pointing out that most of the alleged misconduct took place while former construction union watchdogs the Australian Building and Construction Commission (ABCC) and the Registered Organisations Commission (ROC) were still active.
“Most of the alleged behaviour that’s been reported over the last week occurred during the period when the Coalition was in office and the (construction regulator) ABCC was in operation,” she said.
