Solidarity looks at the justifications for attacking the union and what it will mean.
Is the CFMEU linked to criminals?
There has been a media frenzy following reports by A Current Affair, The Age and the Sydney Morning Herald about CFMEU corruption and links to organised crime. But the evidence is thin.
Most of the allegations are focused on the Victorian CFMEU. The media found four current or former members of bikie gangs who were CFMEU delegates. But the union has hundreds of delegates across building sites in Melbourne defending workers’ rights.
Another story featured self-described “CFMEU fixer” Harry Korras, who asked for bribes to set up a meeting with the union. But the meeting never happened and the papers had no evidence Korras had any real influence with the union.
They also claim the CFMEU has given construction companies linked to organised crime work on construction projects—but the only evidence was anonymously-sourced quotes.
CFMEU control of projects is not something sinister—it means that CFMEU-standard wages and conditions apply, protecting workers’ rights the union has won.
Other claims allege unlawful “intimidation” against building companies. This usually means the union is defying anti-union laws that make basic strike action illegal.
Picket lines at the Cross River Rail strike in Brisbane have been declared unlawful intimidation because they attempted to stop scab labour entering the site. But picketing is a necessary part of any serious strike. It is the anti-union laws criminalising it that are the problem, not the CFMEU.
Has anyone been charged with a criminal offence?
Serious evidence of corruption would lead to criminal charges. But the only criminal charges to date are old news. NSW Secretary Darren Greenfield and his son were charged in September 2021 over accepting bribes but are yet to face trial almost three years later. Greenfield and the NSW branch say they are innocent.
Senior Victorian official Derek Christopher allegedly received free labour and materials on his home renovation from construction companies in 2017. He was questioned by police but has never been charged.
What about corrupt bosses?
Criminals among construction bosses are nothing new. The Nahas family, owners of multi-billion-dollar residential property developer Coronation Property in Sydney, are known for suspected links to the Alameddine crime family. YouTube satirist Jordan Shanks had his house firebombed after launching a video attacking them in 2022.
In an industry where many small companies compete for short-term contracts, bankruptcies and shonky bosses are common. Workers are constantly paid late or not paid at all, with about $320 million in underpayments each year, a PwC study estimated in 2019.
This environment attracts organised crime. But mafia figures typically want unions to make sweetheart deals allowing underpayment of workers. The accusation against the CFMEU is the opposite—that it delivered safety, wages and conditions that bosses considered too good.
How has the union responded?
The CFMEU national office has stepped in to take control of the union’s Victorian branch and investigate. National secretary Zach Smith argued, “The union movement is more than capable of dealing with allegations in their own ranks and responding appropriately.”
Unions are democratic organisations and should be allowed to manage their own affairs without court or government interference. Fair Work Australia has a history of anti-union bias and usually sides with the rich and powerful.
The union has already appointed Geoffrey Watson SC, formerly with the NSW Independent Commission Against Corruption, to run an independent investigation. But the Albanese government has brushed this aside and insisted on taking over the union.
What will administration mean?
Administration will leave the union paralysed, giving bosses a free hand to force it off worksites and tear up enterprise bargaining agreements (EBAs). It is a radical measure that will take away control of the union and suspend union democracy.
The Albanese government wants a court-appointed administrator installed in branches in Victoria-Tasmania, South Australia, NSW and Queensland. If there is any delay in the Federal Court approving this, it will use legislation.
Elected officials are likely to be sacked. Union organisers and other staff would initially remain in place but the administrator would be able to sack them.
The administrators will have complete control of the union and will focus on reviewing existing EBAs and investigating union organisers and delegates. They will be able to dictate whether the union tries to enforce EBAs on sites or pursue bosses over safety problems.
The construction industry bosses want to use this as an opportunity to weaken the CFMEU and undermine union militancy.
Administrators would remain in place “for two years or more” according to the Nine Papers, reviewing existing EBAs and investigating union organisers and delegates.
One of the strongest unions in the country faces a government attack that could leave it drastically weakened—it needs every unionist’s support.
By James Supple
