Cbus sought distance from CFMEU eight years ago

Reports of Construction Forestry and Maritime Union (CFMEU) officials asserting influence over major industry fund Cbus run counter to the big industry fund’s efforts eight years ago to distance itself from what was described as ‘malign’ union influence.

In the wake of so-called Trade Union Royal Commission initiated by the former Abbott Coalition Government, the then Cbus chair and former Victorian Labor Premier, Steve Bracks, gave an interview in which he said the fund had changed enormously having implemented staff changes and policies.

At the heart of the issue six years ago was the fact that two-thirds of field workers employed by Cbus were representatives of the CFMEU.

The CFMEU’s influence was also blamed by the royal commission for the leaking of private Cbus members’ information to a senior union official.

Those events resulted in two Cbus staff being sacked and the matter referred to the Australian Securities and Investments Commission (ASIC) for possible prosecution.

Former Australian Competition and Consumer Commission chair, Graeme Samuel found that two-thirds of member co-ordinators employed by Cbus were CFMEU officials and that this posed an unacceptable conflict.

His findings resulted in Cbus reducing the number of CFMEU officials to just eight out of 22.

ASIC decided in 2017 that it would be taking no further action against Cbus.

According to the most recent reports a senior CFMEU official has been alleged to have boasted to building firms that he could secure them lucrative on major projects financed by Cbus Property because of his influence with the fund.