Labor Executive Contemplates Prohibiting CFMEU Donations Following Royal Commission Requests
There have been calls for a Royal Commission to conduct an unbiased investigation into the troubled CFMEU.
Labour’s National Executive is currently deliberating on whether to accept donations from the CFMEU.
Industry stakeholders are urging for a Royal Commission probe into the unions.
On July 18, the Executive will meet to make firm decisions, according to Workplace Relations Minister Tony Burke.
Several state branches have already chosen to sever financial associations.
In an interview on ABC’s 7.30 program, Labour Minister Bill Shorten stated that donations from the CFMEU may be halted temporarily due to troubling allegations.
These allegations include corruption charges against union leader Darren Greenfield and his son Michael, John Setka’s resignation after a rift with the AFL, and suspicions of ties to organized crime.
Labour placed the CFMEU under administration on July 17, with Murray Furlong appointed as administrator by the Fair Work Commission General Manager.
Minister Burke emphasized that unions must prioritize the interests of their members, which he claims the CFMEU construction division has failed to do.
Current Investigation Criticized by Think Tank
However, some critics argue that Labour’s tough stance on the union is superficial and does not address the party’s strong connections.
The Australian Institute for Progress (AIP) described it as “window dressing” and highlighted a conflict of interest due to the high union involvement among Labour Party members and MPs.
AIP Executive Director Graham Young called for a Royal Commission specifically targeting the CFMEU and its government ties, emphasizing the need for a bipartisan approach to ensure public confidence in the outcomes.
Mr. Young also pointed out policy changes that have weakened safeguards against union misconduct, including the abolition of the Registered Organizations Commission and Australian Building and Construction Commission in 2023, resulting in hefty fines against the CFMEU.
ACTU Anticipates Lengthy Cleanup Process
On the other hand, Australian Council of Trade Unions (ACTU) secretary Sally McManus predicted a prolonged cleanup process for the CFMEU.
Ms. McManus outlined the steps required, including appointing an administrator, holding new elections, implementing proper processes, and removing criminal elements before reinstating new leadership.
She emphasized the importance of democratic governance within unions and announced the ACTU’s decision to suspend the CFMEU’s construction division until it is free of criminal influence.
