The Victorian Government is facing calls to hold a Royal Commission into alleged corruption in the Construction, Forestry and Maritime Employees’ Union (CFMEU).
A report released last week as part of a Queensland Government inquiry alleges “violent, criminal, and greedy” behaviour by CFMEU members in Victoria under former boss John Setka.
This is a big story. Let’s unpack.
CFMEU
The CFMEU is one of Australia’s largest unions, representing more than 115,000 members across construction, manufacturing, and shipping.
In 2024, it was placed under administration after a Nine Network investigation uncovered alleged links between criminal figures and the CFMEU’s construction division. Barrister Mark Irving was appointed to help the union “return to operating lawfully”.
Irving himself appointed another barrister, Geoffrey Watson, to investigate possible wrongdoing in the CFMEU.
Victorian CFMEU
The Victorian CFMEU was a registered member of the state branch of the Labor Party. It donated more than $3 million to the party during the 2022 election. Allan asked Labor leadership to remove the CFMEU’s construction wing from the party in 2024.
John Setka became the Victorian CFMEU State Secretary in 2012.
In 2019, Setka was convicted of harassing his ex-wife. In the same year, he resigned from the Labor Party following pressure from Anthony Albanese over comments he is believed to have made about domestic violence prevention campaigner Rosie Batty. Setka has denied the remarks.
In 2015, the Victorian Government launched its $100 billion ‘Big Build’ road and rail infrastructure program.
It includes projects such as the Metro Tunnel train line and major road upgrades.
The projects require a large number of construction workers, which is where the CFMEU comes in.
Allegations
After the 2024 Nine reporting on alleged corruption in the CFMEU, the Queensland Government launched an inquiry. It is investigating possible misconduct by the CFMEU across the country.
The inquiry has heard from Watson, who has given evidence as well as submitting his reports on alleged corruption in different states’ CFMEU branches.
Watson said the Big Build meant the CFMEU in Victoria was able to negotiate high salaries for its workers.
He added: “The flood of government money also made the Big Build ripe for corruption”.
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Watson alleges the conditions of the Big Build, under Setka’s leadership, allowed for CFMEU “collaborations... with outlaw motorcycle gangs (OMCGs)”.
This included “building sites [being] converted by OMCGs into drug distribution centres”.
He cited evidence that “potential workers had to ‘donate’ $100 in cash” to CFMEU officials to be put on “lucrative” weekend night shifts.
“The impact of Setka as secretary was to create and entrench a corrupt leadership of the Union,” Watson said.
Watson added that he had reached out to Setka to respond to his claims.
He said Setka’s response was as follows: “I warn you watson you should hope you never cross my path, so go and f**k your mum and Irving’s, and leave me alone, you f****n fat ugly c**t.”
Redaction
The same week Watson gave evidence to the inquiry, Nine newspapers reported Irving had redacted some of the allegations from Watson’s report on the Victorian CFMEU.
Irving told Nine he had redacted sections he was “not satisfied... were well-founded or properly tested”.
One redacted section alleged $15 billion of Government money had “been poured directly into the hands of criminals and organised crime gangs”.
Following Nine’s reports, Watson told the inquiry he had been unhappy with this being redacted, but backed Irving’s leadership.
The Victorian Coalition Opposition has previously called for a Royal Commission into the CFMEU.
This week, following the release of the $15 billion figure, the Opposition proposed terms of reference for the Royal Commission, including:
- Investigating the cost of alleged misconduct and funding to OMCGs; and
- Examining the Government’s culpability and knowledge.
Govt response
Upper house Labor MP member Tim Richardson called the $15 billion claim unfounded and untested”.
Addressing the Royal Commission calls this week, Premier Jacinta Allan said in question time that Labor does “not support the calls... for a royal commission.”
During a press conference, a journalist accused Allan of looking “disinterested”. In response, the Premier paused the presser and asked the journalist to “retract” the “observation.”
