Rank-and-file construction members of the Construction Forestry, Maritime Employees Union (CFMEU) have been campaigning to keep the manufacturing division within the union’s amalgamated structure.
But there has been a push, led by the national secretary of that division, to demerge.
The Fair Work Commission, on January 23, granted the manufacturing division the right to ballot its members on demerging. It will happen between February 24 and April 14.
Amelia, an apprentice fabricator, said on Defend the Unions – Defend the CFMEU on January 26 that manufacturing members would be better serviced and have a stronger union if they stayed within the amalgamated CFMEU.
“Come together as rank and file members and support each other through our struggles,” she said.
According to the Australian Financial Review, which is campaigning for the break-up, if the manufacturing division left, 10,000 workers would set up a new union — the Timber Footwear and Textile Union — and take $5.3 million of union assets. (The mining division left the CFMEU in 2023 taking 21,000 members and $100 million in assets.)
The membership of the remaining construction and maritime divisions would have 100,000 members, $122 million in assets and a total income of $11.2 million, according to the AFR.
Michael O’Connor, the CFMEU’s Manufacturing Division National Secretary, wants out saying last October there was no benefit for his members to stay in.
He pointed to the still unproven corruption allegations against the construction division, saying: “We are a union of honest, hardworking unionists who deserve better than being associated with the CFMEU Construction Division”.
O’Connor also quoted from a recent survey of manufacturing division members (with no details given about how many were surveyed) which said 84% of manufacturing sector members would vote “Yes” to a demerger.
One question in the survey set the tone: it asked if participants were aware of the allegations of corruption and criminality within the construction division of the CFMEU. Unsurprisingly, 96% said “yes”.
Meanwhile, O’Connor is facing corruption charges in the Federal Court, brought by the Australian Prudential Regulation Authority (APRA).
Investment Magazine reported last September 6 that O’Connor allegedly breached his director covenants at First Super, when he approved the full-time employment of a CFMEU employee paid for by the fund.
APRA claims that O’Connor failed to “act honestly” and did not exercise the “care, skill and diligence” expected of a director.
The corporate media has not asked the CFMEU Construction Division, or rank-and-file CFMEU members, about their views on the demerger proposal.
Your Union — Your Choice reported a leaked directive, last year, from Michael Flinn, Deputy Chief of Staff for the CFMEU Administrator, which banned construction organisers from contact with manufacturing division members.
At the time, CFMEU Construction opposed the ballot because of concerns that the manufacturing division was claiming trades traditionally covered by CFMEU Construction.
However this was resolved before Christmas, when the divisions agreed to eligibility rules to stop membership overlap.
“The demerger proposal is an attempt to halt manufacturing division members from joining the construction division which is more capable of winning higher wages and better health and safety conditions,” Tim Gooden from Defend the Union – Defend the CFMEU told Green Left.
Meanwhile, on January 16, 300 pulp and paper mill workers in the Latrobe Valley, members of the CFMEU’s manufacturing division, have been locked out of Nippon Paper Group’s Opal paper mill in Morwell.
Enterprise bargaining negotiations broke down as Opal claimed that the loss of wood supplies from VicForests and the terms and conditions from previous EBAs “were no longer relevant in a more competitive market”. It ended the negotiations.
According to Anthony Pavey, CFMEU Maryvale sub-branch secretary, the workers were locked out with only one hour’s notice, after seven operators took a protected action stop-work for six hours.
Pavey said Opal “want to talk about clauses that strip away all our rights and allow them to dictate terms at the drop of the hat”.
The paper mill is the biggest employer in Morwell and the lock-out could have a disastrous impact on a region already hard hit by industry shutdowns and cost-of-living rises.
Dustin Heard from Defend the Union — Defend the CFMEU, one of three construction workers who visited the locked-out workers on January 28, said they appreciated the solidarity and the donation of $1300.
They spoke about the plight of the locked-out workers and their solidarity donation on O’Connor’s Facebook page and were promptly blocked.
“The manufacturing division of the CFMEU seems to be using this Opal dispute to build support for the demerger by denigrating the construction division,” said Gooden.
“Union solidarity across unions will be necessary if workers are to win the paper mill dispute,” he said.
[The next meeting of Defend the Unions – Defend the CFMEU is on February 12, 6pm at the Maritime Union of Australia meeting rooms, 46-54 Ireland Street, West Melbourne.]