A leading Liberal MP wants an industry pension fund giant, backed by the embattled CFMEU, to be excluded from the Albanese government’s multi-billion-dollar social housing plans.
The Construction, Forestry, Mining and Energy Union is a key shareholder in Cbus, a high-profile industrial superannuation fund with 930,000 members and $94 billion under management, and has key members of the construction union on its board.
He is also behind Cbus Property, the super fund’s property development arm.
But following allegations that the bikers are acting as union officials, opposition senator Andrew Bragg is questioning why Cbus should be allowed to be part of Prime Minister Anthony Albanese’s $10 billion Australia’s Housing Future Fund.
Labor leaders across Australia are now distancing themselves from the CFMEU, after John Setka resigned as Victorian secretary following reports that motorcyclists had been recruited as health and safety officers.
Employment and Workplace Relations Minister Tony Burke announced on Wednesday that the CFMEU’s construction division would be placed under independent administration, but stopped short of pushing for the union’s registration to be cancelled.
This means the Fair Work Commission will have government support to take over the CFMEU.
“The number one job of any union and its leaders is to take care of their members,” Burke said.
“The conduct reported by the CFMEU construction division is completely contrary to this. It is repugnant and intolerable.”
Senator Bragg has called for Cbus to be banned from participating in the federal government’s $10 billion Housing Australia Future Fund.
“The Canberra Labor government is trying to get the Cbus super fund to help them with the housing crisis,” he told Sydney’s 2GB radio host Chris O’Keefe on Tuesday.
‘Now, I think Labour is making the housing situation worse because all their solutions are based on how they can send more money to the vested interests of the unions rather than building more houses.
Australia’s embattled construction union is also behind one of the country’s biggest industry pension funds and its property development arm is a major player in Labor’s multi-billion-dollar social housing plans (pictured is former Victorian chief minister John Setka).
‘The organisation has been ostracised by the labour movement, but apparently they are still fine with helping the government with housing issues. I mean, it sucks.’
Last month, the CFMEU secured a 21 per cent pay rise over four years for its Victorian members.
In 2022, Cbus chairman Wayne Swan, a former treasurer and deputy prime minister, suggested the organisation would invest $500 million in Housing Australia’s Future Fund projects.
Senator Bragg argued that Cbus was in conflict because it would charge taxpayers higher construction costs under Labor’s plan to build 30,000 public homes over five years.
“These are the people who are trying to ruin everything; these are the people who are making it more expensive to build in Australia,” he said.
Senator Bragg also questioned why the CFMEU gave $1.25 million to Cbus in the 2022-23 financial year.
“We should not have a system where people’s retirement savings are used for political purposes, and certainly not for purposes like supporting thuggish behaviour, bikers, organised crime and that’s what I think is happening,” he said.
“People’s hard-earned money is being used to support mafia-like behavior.”
Mr Swan’s deputy, Rita Mallia, is president of the New South Wales branch of the CFMEU.
The CFMEU is a key shareholder in Cbus, a pension fund with 930,000 members and $94 billion under management, and has key members of the construction union on its board.
Cbus’ board also includes prominent CFMEU members, including former national construction secretary Dave Noonan (pictured) and the union’s former Australian Capital Territory boss Jason O’Mara, who has previously been accused of threatening to drive businesses out of the city.
Cbus’ board also includes prominent CFMEU members, including former national construction secretary Dave Noonan and former Australian Capital Territory union boss Jason O’Mara, who was previously accused of threatening to drive businesses out of the city.
In another twist, Denita Wawn, a Cbus board member and CEO of Master Builders Australia, has called on the Australian Competition and Consumer Commission and the Fair Work Ombudsman to investigate the CFMEU.
The employer representative on the Cbus board told Daily Mail Australia that putting the CFMEU national office in charge of the Victorian branch was a weak response.
“A self-appointed internal investigation simply will not suffice,” he said.
“We need to see fully resourced ACCC and FWO investigations along with an interstate law enforcement strike force.”
The Victorian branch of the CFMEU is now in administration, under the control of the national office, but its website promotes Cbus.
Cbus Property, the super fund’s freehold development arm, built 1 Willliam Street in Brisbane, where Queensland government ministers now have their offices.
Despite its Labor connections, Queensland’s former Liberal National Party government led by Campbell Newman awarded Cbus the $653 million tender in 2012, and the 260-metre-high tower opened in October 2016.
Cbus delivered strong returns to its members in 2023-24 and SuperRatings data shows that balanced option funds grew by 11.4 per cent, which was better than the industry average of 8.8 per cent.
It was initially known as the Construction Trades Union Superannuation Scheme when it was formed in 1984.
Daily Mail Australia has contacted Cbus and Mr Burke for comment on Senator Bragg’s claims.
