The administrator overseeing the CFMEU’s construction division has accused former officials, including ex-Victorian branch secretary John Setka, of holding back reform efforts within the union, and says the organisation is preparing what he described as unprecedented legal action over their past conduct. The comments come as the federally appointed administration continues its work to overhaul the scandal-plagued division.
Why the union is under administration #
The Construction, Forestry and Maritime Employees Union’s construction arm was placed into administration in mid-2024 after allegations aired in media reporting and before a parliamentary inquiry pointed to links between union officials and outlaw motorcycle gangs, standover behaviour on building sites, and questions about the awarding of enterprise agreements. The federal government legislated to allow an administrator to be installed, with the power to suspend officials, oversee finances, and push through governance changes.
Mr Setka, who led the union’s Victorian branch for close to a decade, resigned from his position in mid-2024 as the administration process got underway. He has previously denied wrongdoing. VCN notes he is not currently before a Victorian court on charges arising from these matters, and any suggestion of criminal conduct remains, at this stage, a matter for investigation rather than a finding by any court.
Administrator’s comments #
Speaking publicly this week, the administrator said the conduct of some former officials in the Victorian branch had actively undermined efforts to clean up the division, using blunt language to describe what he characterised as resistance to change from within. He said the administration was preparing legal action against a number of former officials, which he described as without precedent for the union, though he did not detail the specific allegations that would form the basis of any claim.
VCN has not seen any court filings relating to this flagged action, and no proceedings appear to have been lodged as of publication. Any legal action foreshadowed by the administrator would need to be filed and tested through the ordinary court process, and none of the individuals referred to have had allegations of this kind determined against them by a court.
The administrator also used the platform to call for stronger regulatory oversight of the broader construction sector, arguing that cultural problems extended beyond the union itself and into how major building projects are governed and policed across Victoria.
What this means for Victoria’s Big Build #
The CFMEU’s construction division has long been a dominant industrial force on Victoria’s major infrastructure projects, including level crossing removals, the Metro Tunnel, and West Gate Tunnel works. Enterprise agreements negotiated with the union set pay rates and site conditions across much of the sector, giving the union significant influence over how these multi-billion-dollar projects are staffed and run.
The parliamentary inquiry and subsequent administration process have raised questions about whether that influence was at times exercised improperly, including claims of intimidation of subcontractors and allegations that certain companies were favoured or excluded from major projects based on their relationship with union officials. Victoria Police has previously confirmed it is investigating aspects of conduct on building sites referred to it, though it has not detailed the scope or timing of any charges.
Those investigations remain ongoing, and VCN understands no charges have yet been laid against Mr Setka or other former Victorian branch officials arising specifically from the matters raised in the parliamentary inquiry. Readers should treat any suggestion of criminal conduct as allegation only.
The push for a regulator #
Central to the administrator’s public comments this week was a call for a dedicated regulatory body to address what he described as entrenched cultural problems in construction, separate from the union’s own governance issues. He argued that without external oversight, cultural problems on building sites — including allegations of bullying, safety shortcuts, and standover tactics linked to organised crime figures — would persist regardless of who runs the union.
This is not a new call. The federal government’s Australian Building and Construction Commission previously held a similar watchdog role before it was abolished in 2022. Industry groups and some Coalition MPs have argued for its reinstatement or for a similar body, while unions have historically opposed the ABCC as unfairly targeting workers rather than dishonest builders or corrupt officials.
The state government has not indicated whether it supports the administrator’s call for new regulation, and any such reform would likely require action at a federal level given the ABCC’s history as a Commonwealth body.
What happens to Mr Setka and other former officials now #
Mr Setka has not held an official position with the union since his resignation, and has previously said publicly that he intends to defend his reputation against allegations raised during the parliamentary process. VCN has not been provided with, and has not seen, any statement of claim or charge sheet relating to the legal action flagged by the administrator this week.
Under the administration arrangements, the administrator retains broad powers to investigate historical conduct, recover funds, and refer matters to police or other regulators including the Fair Work Ombudsman. Any civil action arising from that work would be separate from, and would not depend on, any parallel police investigation.
We will continue to follow developments in the administration process, including whether any legal action is formally filed, and what it alleges. As with all matters raised but not yet before a court, VCN will report allegations as allegations, attributed to their source, until any matter is tested.
Context: the parliamentary inquiry #
The Victorian and federal concerns about the CFMEU’s construction division stem substantially from a parliamentary inquiry and extensive media reporting last year, which canvassed claims involving alleged links between some union figures and outlaw motorcycle gang members, and allegations that certain building contractors faced pressure over subcontracting arrangements. Those claims were put to a Senate inquiry and formed part of the basis for the federal legislation enabling administration of the union.
It is important to note that a parliamentary inquiry is not a court, operates under parliamentary privilege, and its findings or the evidence given to it do not constitute a legal finding of wrongdoing against any individual named in the course of its hearings.
The bigger picture for Big Build governance #
For Victorian readers watching the state’s transport and infrastructure pipeline, the CFMEU administration sits alongside broader questions about probity and cost overruns on major projects such as the Suburban Rail Loop, the West Gate Tunnel, and the Metro Tunnel. Oversight bodies including the Victorian Auditor-General and IBAC have separately examined aspects of project governance in recent years, though those reviews are distinct from the current union administration process.
VCN’s Big Build Watch coverage will continue to track how the administration’s reform agenda, any flagged legal action, and calls for a new regulator play out, and what impact — if any — they have on the pace and cost of Victoria’s infrastructure program.
The matters raised in this article, including any prospective legal action referred to by the administrator, are allegations only at this stage. No court has made findings against the individuals named. All persons are presumed innocent until proven guilty in a court of law.
Readers seeking support or with information relevant to workplace safety or organised crime concerns on Victorian construction sites can contact Crime Stoppers on 1800 333 000.
