South African union branch in administration amid allegations of links to crime

Yesterday, the CFMEU national office placed its South African and Victorian branches into receivership following allegations of criminal behaviour and links to a motorcycle gang, which will be subject to an independent investigation.

Prime Minister Peter Malinauskas has asked the South African Police Service to investigate any potential criminal links within the state branch and has written to the Labor Party’s national executive asking for the union’s links to the ALP to be suspended until the investigation is complete.

The accusations have led to calls for the union to be deregistered, but its national secretary Zach Smith says this would be a retrograde step.

“Deregistration would be a disaster for workers,” he said on Tuesday.

“Deregistration means that workers lose the ability to represent them on issues such as safety, pay and working conditions overnight.

“It’s a dangerous, insecure industry and the last thing we want is to leave workers vulnerable and disrepresented, with no protection in an industry like ours.”

Smith said the union is able to conduct its own investigation rather than appoint an independent investigator, and union members are entitled to the presumption of innocence.

“External administration and further government intervention are not necessary. You are looking into the future and trying to determine in advance the inadequacy of the response here, when the administration took place only yesterday,” he said.

“This process that I’m starting will be independent… it won’t be just me. I’m working on the mechanisms now.”

The national secretary also defended controversial former Victoria branch boss John Setka, who resigned on Friday after allegations emerged.

Smith said Setka did not bring shame to the union.

“On Friday he made the decision to step down because he believed it was the best thing for the union, the best thing for the CFMEU members. That speaks volumes about his integrity and his credibility,” he said.

In response to these allegations, the Victorian Labor Government has decided to suspend union membership and political donations.

One federal Labor MP, speaking on condition of anonymity because he is not authorised to discuss internal party matters, questioned whether the party should cut ties altogether.

Highlighting people’s concerns about speaking out against the union, the Labour MP said they wanted to remain anonymous because they “don’t want to wake up next to a horse’s head”.

They said the attempt was intended to be a distraction and that the labour movement had “had enough of the CFMEU”.

“It’s about time. These are not very nice people,” they said.

They accused the country’s executive authorities of turning a blind eye and expressed concerns that CFMEU members could still play a role in labour processes.

Government Services Minister Bill Shorten said there was an unhealthy atmosphere in parts of the CFMEU.

“There is now clear evidence that organised crime in parts of the construction sector has reached levels that are far from acceptable,” he said.

“It’s certainly an extremely serious problem and a betrayal of taxpayers. A betrayal of the vast majority of people who belong to unions.”

Opposition foreign affairs spokesman Simon Birmingham said the government must act quickly to respond to the allegations.

“The Albanian government decided to get rid of the (union) regulator, relaxed the CFMEU’s control and Australians are now paying the price in terms of higher road and construction costs,” he said.

– from AAP