Federal government rejects former CFMEU chief John Setka’s claim of secret resignation deal

The Federal Government says claims by former Construction, Forestry, Mining and Energy Union (CFMEU) Victoria branch leader John Setka that there was a secret agreement under which Mr Setka’s resignation would save his union from receivership are “absolutely fantastic”.

Mr Setka, appearing on Channel 7’s Spotlight on Sunday evening, claimed talks were ongoing between the CFMEU executive, former Labour Relations Minister Tony Burke and Australian Council of Trade Unions (ACTU) secretary Sally McManus about striking a backstop agreement for the CFMEU.

The CFMEU has been under scrutiny since July, when Nine Newspapers published allegations of serious abuses, including claims the union was infiltrated by criminal figures.

John Setka sits behind several microphones at a press conference in Melbourne. — Former Victorian CFMEU secretary John Setka says the federal government has acted dishonourably. (AAP: Stefan Postles)

On 12 July, Mr Setka resigned from his position as Secretary of the CFMEU Victoria branch after 12 years.

On Sunday, Mr Setka claimed his actions were aimed at preventing the government from appointing independent administrators to the union’s Victoria branch under an alleged secret agreement.

John Setka claims that Tony Burke and Sally McManus helped broker a secret deal between unions and the government. (ABC News)

Mr Setka said that despite his departure, the government had not honoured its part of the secret agreement.

“My job is to protect the union, so I said, ‘I’m leaving today, but they’re not bringing in administrators,’” he said.

“When you make a deal with the government you expect it to be honoured, especially when the comments that come out of (Minister) Burke’s mouth are ‘there will be no surprises’.”

Minister attacks ‘completely absurd’ claim

On Monday, Mr Burke’s successor as minister, Murray Watt, called Mr Setka’s interview “quite bizarre” and described the claims of a secret agreement as “absolutely fantastic”.

“This idea by John Setka is completely ridiculous and is another desperate attempt to distract from the problems he has created for his union and his members,” Senator Watt said.

John Setka with a fresh tattoo on his neck with the inscription "God forgives the CFMEU, but not". — Former CFMEU activist John Setka has the words “God forgives, CFMEU doesn’t” tattooed on his neck. (Instagram: Classic Ink Tattoo)

Ms McManus also dismissed Mr Setka’s allegations as untrue and said the ACTU’s position had not changed.

“Anyone accused of serious misconduct should resign. That was the advice given to the CFMEU at the time,” she said.

“In this case, John was not the only person accused of a serious crime.”

We have contacted CFMEU National Secretary Zach Smith for comment.

On Friday, the CFMEU’s construction division was forced to file for nationwide bankruptcy in response to allegations of corruption.

Claims of Factional Warfare Against CFMEU

Mr Setka claims the entire CFMEU executive was aware of the agreement reached in connection with his resignation.

“I was absolutely disgusted. I believe Tony Burke betrayed the construction workers in Australia,” Mr Setka said.

“They lied through and through, they were dishonourable along with the ACTU and it was all about stitching up the CFMEU.”

Mr Setka said this was a deliberate action by the Government to paralyse the rapidly growing CFMEU.

Murray Watt Door Stop — Murray Watt claims that John Setka is trying to distract people from the problems he has caused in their relationship. (ABC News: Matt Roberts)

The former union leader is also embroiled in a dispute with Prime Minister Anthony Albanese, who campaigned in 2019 to oust Setka from the ALP.

Mr Setka said the last time he spoke to Mr Albanese was in a “short conversation” in a lift, during which the Prime Minister was “shaking”, despite Mr Setka insisting he had not said anything “bad” to Mr Albanese.

“He was scared … When someone starts shaking, you know they’re scared, and he didn’t even say a word,” he said.

Senator Watt called Mr Setka’s account “ridiculous”.

“This is just John Setka trying to beat his chest and be a tough guy, which he’s done his entire career,” Senator Watt said.

“Anthony Albanese is not afraid of John Setka, no one in our government is.”

In an interview with ABC Radio Sydney, Mr Albanese vehemently denied ever feeling intimidated by Mr Setka.

“Nonsense. I didn’t watch the interview and I don’t know why they gave it airtime, it’s their decision,” he said.

Setka denies accusations of criminal infiltration

When pressed with allegations that the union had been infiltrated by motorcycle gangs, Mr Setka rejected the response.

“Motorcyclists work in every industry, motorcyclists have been working in construction since Jesus wore shorts,” he said.

He stated that the trade union had no right to discriminate against employees who were members of the clubs and that this would be a violation of the employees’ freedom of association.

the wind blows black and yellow flags with yellow lettering attached to the fences of construction sites with buildings behind — The government takeover of the CFMEU’s construction division will last for at least three years. (ABC News: Brian Hurst)

However, Mr Setka said, “all sorts of horrible people” were trying to gain advantage in the industry, and the union was fighting them to protect its members.

“We had to confront these people. The authorities didn’t do it, no government agency did it, we had to confront these people and push some of them out of the industry,” Mr Setka said.