Alleged crime links and the CFMEU: what to know about the political furore over the construction union?

The Construction, Forestry, Maritime Employees Union – better known as the CFMEU – is one of the biggest and most influential unions in Australia.

It is also now cut off from the Labor party, the subject of misconduct and criminal allegations, and has several branches under independent administration after a dramatic week of developments.

Here is what you need to know.

What is the CFMEU?

The CFMEU was first registered in 1962 as the Building Workers’ Industrial Union of Australia. It has three main divisions: construction and general, manufacturing, and the Maritime Union of Australia, which operate separately under the umbrella of the union. Many members of the controversial Builders Labourers Federation (BLF), which was deregistered in the 1980s, eventually joined the CFMEU.

There was a mining division, but that de-amalgamated in December 2023 and became a separate organisation, the Mining and Energy Union. Last month, parliament paved the way for the manufacturing division to divorce itself from the CFMEU.

Why is the CFMEU in the news?

The CFMEU is no stranger to being in the news – as one of the most influential leftwing unions, it has traditionally had influence in Labor’s factional decisions and has never been shy about using it.

The construction and maritime arms are known for their militancy, the seeds of which were planted by older unions that predated the CFMEU as an organisation, including the BLF, the Seamen’s Union of Australia and the Waterside Workers’ Federation.

The latest allegations centre on the alleged actions of the union’s Victorian construction division. Channel Nine and its mastheads began publishing allegations of organised crime links within the construction branch last weekend. This included allegations that outlaw motorcycle gang members were acting as delegates and were involved in government-funded projects, including from the $100bn “big build” Victorian infrastructure plan.

Who is John Setka?

Setka was branch secretary of the CFMEU’s Victorian construction division for 12 years. He resigned on 12 July, shortly before Nine’s reports, claiming he had been the target of “ongoing false allegations”, which had led to “malicious attacks” on the CFMEU.

Setka left the Labor party in 2019 after Anthony Albanese instigated action to expel him over alleged remarks about domestic violence campaigner Rosie Batty – claims Setka denied. Setka remained influential within the CFMEU, and last month hit the headlines over his demands the AFL sack the head of its umpiring department, Stephen McBurney, a former commissioner of the Australian Building and Construction Commission (ABCC).

What about the federal government?

On Wednesday, the commonwealth workplace relations minister, Tony Burke, announced the government would empower the Fair Work Commission general manager, Murray Furlong, to appoint independent administrators to CFMEU branches. He said if further legislation was needed to aid in that work, the government would make it a priority at the next sitting. Burke also asked the AFP to investigate the allegations in tandem with state police.

On Thursday, the ALP federal executive announced it was suspending the affiliation rights of the Victorian, NSW, Tasmanian and South Australian branches of the CFMEU’s construction division.

The federal executive won’t take any fees from the CFMEU during this time.

So what has happened?

The first reports contained allegations against the construction arm of the Victorian CFMEU and Setka on 14 July, and further allegations were aired throughout the week.

On Monday, the CFMEU national executive took over the administration of the Victorian branch and announced a review overseen by a “leading legal figure” to investigate “credible allegations of wrongdoing”.

The Victorian premier, Jacinta Allan, also announced she would seek to suspend the union’s construction division from the state Labor party and temporarily ban donations from them. She also wrote to police and the Independent Broad-based Anti-corruption Commission about the allegations and announced an independent review.

The New South Wales premier, Chris Minns, also lashed the union on Wednesday morning.

What does the opposition say?

The opposition said the government should have deregistered the union.

Peter Dutton raised the actions of Bob Hawke in the 1980s when he deregistered the BLF. Burke said deregistering was the strongest action Hawke could take because he didn’t have the option of putting the union into administration. He argued administration was stronger as it meant the union was still privy to regulations and oversight, and further action could be taken if necessarywhile deregistering meant it could reform somewhere else.

Dutton said he would introduce legislation to re-establish the Australian Building and Construction Commission, which the Albanese government abolished. The government has already ruled out re-establishing the ABCC, saying it wasn’t effective.

What happens next?

Quite a bit, but nothing will happen quickly.

Various investigations are under way, and we are still waiting on the terms of reference for some that have been announced. The appointed administrators will also carry out internal investigations, which may lead to changes or the union rebuilding under a new name.

Within Labor there will be a slight factional power shake-up, with the CFMEU suspended, but those ripples won’t emerge until some of the latest dust settles.