Labor has emphatically rejected claims by former construction union official John Setka that the Albanese government agreed to let him stand down in return for not putting his union into administration.
The workplace relations minister, Murray Watt, said this was a “ridiculous claim” and rejected as “absolutely fanciful” suggestions Labor had double-crossed him by proceeding to put the union into administration over accusations of criminal misconduct and bikie links against the body.
After the Construction Forestry Maritime Employees Union threatened legal action and disaffiliation from Labor, the government moved swiftly on Friday to put the union into administration just days after creating new ministerial powers to do so.
Rallies will take place in capital cities on Tuesday with CFMEU members including the maritime branch protesting the administration, supported by the Electrical Trades Union.
On Sunday, Setka, the former Victorian construction secretary, told Channel Seven’s Spotlight program that on the day he resigned, he had understood that the union would be “left alone” if he quit.
Setka claimed to have made an offer to the CFMEU’s national secretary, Zach Smith, who was allegedly in talks with then workplace relations minister, Tony Burke, and “I assume [ACTU secretary] Sally McManus”. Setka also claimed that he had once left Anthony Albanese “scared” after the two shared a lift.
On Monday, Michaelia Cash, the shadow workplace relations minister, said any alleged deal needed to be investigated and was “highly alarming”.
Watt told reporters in Canberra that “within two days of John Setka resigning, Tony Burke was on the Insiders program on the ABC saying that John Setka resigning from the CFMEU was a good start, but it was only a start and that all options remained on the table for how to deal with that union”.
“At that point in time, I know that Tony Burke as the minister was considering all options, from administration to deregistration of the union, while he took advice from his department,” Watt said.
“So this idea from John Setka is utterly ridiculous, and it’s another desperate attempt from John Setka to distract attention away from the [union’s] problems”.
Albanese dismissed Setka’s claim that he was “trembling” in a lift with him as “nonsense”.
“I didn’t watch the interview and I don’t know why they gave him air time,” Albanese told ABC Radio on Monday. The prime minister also brushed off a potential legal challenge from the union, questioning “what else is new?”
“That’s business as usual from the CFMEU,” he said, noting that Setka had also unsuccessfully challenged his expulsion from Labor.
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A spokesperson for the CFMEU administrator warned ahead of Tuesday’s protests that while people have a democratic right to peaceful protest “the taking of unprotected industrial action is not lawful”.
“The CFMEU is no longer involved in organising any protest tomorrow,” they said.
Smith has chastised the government for going over the top of the union to appoint an external administrator, saying it stripped members of their right to due process.
The union had responded to the allegations by commissioning a forensic audit, putting place a new code of conduct for delegates and standing down people accused of wrongdoing.
“It is a sad indictment on the federal government and all sides of politics that have succumbed to anti-CFMEU rhetoric spouted by big business and amplified by conservative media outlets,” he said in a defiant video message to members.
The union is in administration for a minimum of three years and up to five, and officials who frustrate or obstruct the process face hefty fines and jail time.
– with Australian Associated Press
