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Construction, Forestry and Maritime Workers Union is one of Australia's most powerful unions.
But according to the latest publication, it was also one of the most dangerous with a series of reports by Nine alleging criminal activity within the CFMEU's construction division.
Workplace Relations Minister Tony Burke has announced the Federal government will intervene.
“The number one task of any trade union is to look after its members. That's the job of unions and the job of officials. The reported conduct of the CFMEU's construction division is the opposite of that obligation. It's disgusting, it can't be tolerated. '
The report alleges bikies and criminals acted as CFMEU delegates and awarded highly paid government-funded projects, including Victoria's $100 billion 'Big Build' infrastructure pipeline.
The government has ordered the Fair Work Commission to appoint an independent administrator to take control of the union.
Burke said he would support the Commission through the process.
'Any action the general manager takes in relation to any part of the CFMEU's construction division, I, as minister, will intervene to support that action. I believe this action is best taken by the regulator but any action to appoint administrators will be supported by me as minister.”
Employment Minister Tony Burke. Source: AAP
The allegations have been referred to the Australian Federal Police, and the Fair Work Ombudsman will review all enterprise agreements made by branches of Victoria's construction division.
The government has the opportunity to cancel union registration - as former Prime Minister Bob Hawke did with the Builders Labour Federation (BLF) in 1986.
Burke said it was no longer the best option.
“When Bob Hawke took deregulation action, it was the toughest action you could take to clean up the organisation. The way industrial relations work under the Fair Work Act means that the toughest action that can be taken is to appoint an administrator.
He said unions that were scrapped could still participate in corporate bargaining.
Opposition leader Peter Dutton was unhappy with that approach.
'I just don't believe that the Prime Minister can say to the Australian public that an adequate response would be to appoint an administrator for what we know is a corrupt organisation. The Premier needs to cancel the registration of the CFMEU. That was the first step he had to take. If the Premier had any backbone, he would cancel the registration of the CFMEU.”
The report by Nine focuses on the Victorian branch of the union.
After 12 years as secretary of state, John Setka resigned on Friday ahead of the allegations being aired, but denies any wrongdoing.
The construction division of the CFMEU has been suspended from the Victorian Labor Party, with New South Wales Premier Chris Minns also saying similar.
'We are determined to take action on the basis that the current situation is completely intolerable and is an affront to unions and members who work in the construction sector every day of their working lives. '
Queensland has not expelled unions from the Labor Party but Premier Steven Miles has pledged to help the Federal Government through the administrative process.
Australian Council of Trade Unions (ACTU) National Secretary Sally McManus said the Council had also taken action against the CFMEU.
“We have decided to suspend the construction and general division of the CFMEU from the ACTU until they are in a position to demonstrate to us that they are a well-functioning union, clean, free of criminal elements.”
ACTU Secretary Sally McManus (centre) speaks during a press conference in Melbourne, Wednesday, July 17, 2024. (AAP Image/Joel Carrett) NO ARCHIVING Source: AAP / Joel Carrett
