CFMEU drama deepens with Victorian and Federal Labor under fire amid allegations they were warned over union

If Labor had truly been in the dark about the nefarious activities of the CFMEU, their shock and outrage at allegations bikies and underworld figures had infiltrated the construction arm of the powerful union’s Victorian branch could be believed.

But, given it now appears it was only a matter of time before the dirty, allegedly thuggish laundry was aired out and exposed for all to see, the outrage appears confected.

In addition to initial reports criminals had acted as delegates within the union and had been awarded lucrative government-funded projects, it was revealed on Tuesday that state and federal governments were warned as far back as 2022 that the CFMEU was using thuggery and bullying tactics to ensure access to the projects, including Victoria’s $100 billion Big Build pipeline.

According to bombshell reports, Prime Minister Anthony Albanese and Victorian Premier Jacinta Allan — then the State’s infrastructure minister — were contacted by an Indigenous labour-hire firm in 2022 with “detailed evidence” that union officials were threatening violence and banning non-union preferred firms from taxpayer-funded projects.

The state Opposition has accused Ms Allan of “turning a blind eye” to the union’s behaviour after it was revealed her office had taken a year to respond to the letter.

On Tuesday, Ms Allan said both the Victorian and federal Labor Party “do need to do better”.

“People don’t deserve to be bounced around between different levels of government, and that is why — in concert with the Federal Government in terms of what actions they may be taking in this area — we know that we can do better and will do better, and I am determined that we address this,” she said.

In response, the state branch has been taken over by the national office, and Ms Allan has referred corruption allegations to the police and the state’s corruption body, moved to suspend affiliation with the union and its political donations, and has asked the ALP national executive to suspend the construction division of the CFMEU from the Victorian Labor Party.

The rest, she says, is up to the Federal Government.

The national executive could meet as early as Wednesday, where the potential banning of political donations from the Victorian branch of the construction division is set to be discussed, as are requests from state premiers to suspend affiliation between the union and their parties.

Mr Albanese said on Monday — before the latest revelations were published — that everything was “on the table” when it came to forging a path forward. Both he and Workplace Relations Minister Tony Burke have this week left the door open to deregistering the entire union and bringing in external, independent administrators to clean up the rot.

CFMEU national secretary Zach Smith on Tuesday defiantly declared his union capable of cleaning up its own house, and deemed an independent investigator as “unnecessary”.

“(Our) investigation will have independence, this investigation will draw outside expertise and legal advice and outside scrutiny to get to the bottom of any allegations,” he said.

Mr Smith, who has resisted the ACTU’s calls for the union to stand down officials subject to criminal investigation, on Tuesday also praised former CFMEU Victorian secretary John Setka has a man of “integrity” and “credibility” despite the years of black marks against his character.

Having been caught now on the back foot despite years of warning bells, and with the union itself seemingly trying to push things under the carpet, Labor must take strong action. How else can Australians be confident that such blatant thuggery and criminality won’t happen again?

The Federal Government says it is taking the allegations seriously.

But both Mr Albanese and Mr Burke were quiet on Tuesday as some Labor members began to anonymously accuse the national executive of opting to look away for years, rather than deal with the increasingly thuggish union they were being warned about.

The party’s political opponents say the fact that Labor has accepted millions of dollars in union donations could underscore why the party had “blatantly ignored” the warnings. The Federal Coalition has called for all money to be returned.

Coalition workplace relations spokeswoman Michaelia Cash said while the “first-best” time for Labor to deal with the issues was when the letters were sent in 2022, the next best time was now.

“Labor must immediately, and formally break ties with the CFMEU, as well as pledge to accept no further donations from the militant union,” she said.

She also demanded Labor deregister the union, and reinstate the Australian Building and Construction Commission - which was re-abolished in 2022 - or risk the “chaos” continuing.

“Mr Albanese was warned of some of the CFMEU’s appalling behaviour in October 2022, and what did he do next? He abolished the Australian Building and Construction Commission, which directly benefited the CFMEU,” she said.

“Not only did he ignore the warnings, he abolished the body which could have done something about it!”

Senator Cash posited it was clear there were broader, endemic issues within the CFMEU that went beyond the Victorian branch, and that the only way to stamp it out was to deregister the whole union.

“This is about his failed leadership. He should be directing Tony Burke to be making an application today to deregister. Anything less is weak leadership, and shows Mr Albanese is beholden to the CFMEU,” she said.

Mr Smith warned that deregistering the union would be a “disaster”, saying it could mean workers “lose the protection around wages and conditions in their workplace”.

Labor must weigh up whether workers are better off with a union that has allowed criminality to occur and a toxic culture to thrive, or without that union at all.

There are also questions about how far this kind of rot extends — and the microscope is also turning towards the ACT, Queensland, NSW and SA branches of the powerful union. The Queensland, SA and NSW governments have moved to distance themselves from their local branch.

One federal Labor MP, speaking anonymously, suggested it might be best for the party to cut ties with the union altogether.

When Labor members themselves are accusing the national executive of turning a blind eye, and citing concerns about the role CFMEU members can still play in the Party’s processes, it’s clear that something needs to change.

As former AWU national secretary and former Labor leader Bill Shorten said this week, the party must forge a new path forward.

“The national executive … will be having a pretty long, hard look at all of this, and I just think the old status quo is going to be questioned pretty severely,” he said.