The New South Wales premier, Chris Minns, has asked for the Construction, Forestry and Maritime Employees Union’s (CFMEU) affiliation with the state Labor party to be immediately suspended and donations and fees to be stopped after further allegations against its leadership.
The Labor leader also vowed to work with the federal government to appoint an independent administrator to the CFMEU in NSW because the union was “either unable or unwilling to reform its leadership in the face of devastating allegations”.
Minns lashed the union on Wednesday morning after Nine newspapers published a video allegedly capturing union boss Darren Greenfield being passed a $5,000 cash bundle in a suspected kickback deal.
Greenfield, the state’s union secretary, has been charged over the issue and is defending the case, which is before the courts.
Minns said the alleged behaviour was “appalling” and had moved to end the union’s affiliation with NSW Labor.
“Given the serious nature of the allegations, we have written to the NSW Labor Party General Secretary and asked they take the necessary steps to immediately suspend the CFMEU Construction and General Division’s affiliation from the NSW Labor Party and stop any donations or affiliation fees,” he said.
The decision to appoint an administrator to the union rather than to deregister it was based on legal and practical advice, according to the treasurer, Daniel Mookhey.
“It is far more likely to lead to a speedy cleanup of the construction division of the CFMEU,” he said.
“All that deregistration achieves is it strips the union of its status in the industrial relations system, but it doesn’t lead to any change in the leadership or control of the union’s assets.”
Earlier in the week, Minns said he thought Greenfield “should go” while he faced bribery charges.
The federal workplace relations minister, Tony Burke also announced on Wednesday that the Fair Work Commission would appoint independent administrators to the CFMEU while an investigation into the allegations was carried out.
The Queensland premier, Steven Miles, said the state government would also be prepared to legislate to appoint administrators.
On Monday, the Victorian premier, Jacinta Allan, wrote to police and the Independent Broad-based Anti-corruption Commission to investigate allegations of criminal links within the union, also reported by Nine newspapers.
The Victorian branch of the CFMEU was placed into administration, and Allan sought the suspension of the union’s construction division from the state Labor party over allegations of criminal links.
Allan welcomed the NSW government’s decision.
“We are already moving on the actions we must take, and we will take,” she said on Wednesday.
“We need to fix this, we must fix this and we will fix this.”
She said the state’s tens of thousands of construction workers deserved to be represented by an organisation that has “the highest standards of leadership”.
The NSW premier said there was “no tolerance for criminal or corrupt behaviour in the building industry” nor in unions and flagged further action was being considered with the federal government.
“The NSW construction compliance unit will work with federal regulatory bodies and act on any allegations,” Minns said.
Minns will also ask the federal government to review enterprise bargaining agreements in NSW, which the CFMEU is party to.
“We must take the necessary action to protect honest and hardworking construction workers and union members,” he said.
“It is necessary to protect the integrity of the construction sector and unions in NSW.”
Both the NSW and Victorian opposition have called for a royal commission into the CFMEU.
Victoria’s opposition leader, John Pesutto, said the mess could only be overcome with a “thoroughly independent inquiry”, while NSW’s acting opposition leader, Damien Tudehope, accused Minns of insulting “every honest worker in this state”.
“In the wake of these damning revelations, the premier pretends to take action,” he said.
“This is nothing more than political theatre.”
– With Andrew Messenger
