The CFMEU Saga Has a New Chapter. Here’s What Employers Need to Take From It.

John Setka was back in court this week. The former Victorian head of the Construction, Forestry and Maritime Employees Union appeared at Melbourne Magistrates Court facing charges of using a carriage service to menace, harass and offend. The alleged target? The very administrator appointed to clean up the union he once ran.

That detail alone tells you everything about the culture this story is really about.

For employers, the CFMEU saga is not just a news story. It is a case study in what happens when industrial power goes unchecked, and a timely reminder that the best protection you have is not waiting to see what the union wants. It is getting your own house in order first.

How did we get here?

Setka ran the CFMEU’s Victorian branch for 12 years. By any measure, he was one of the most powerful union figures in the country. He was also one of the most controversial.

In July 2024, a joint investigation by 60 Minutes, The Sydney Morning Herald, The Age and the Australian Financial Review published months of reporting on alleged criminal infiltration of the CFMEU’s construction division. The allegations were serious: bikie gang members acting as union delegates, criminals being handed high-paying roles on government-funded projects, and a culture of intimidation that had apparently been running for years.

Setka resigned the same week the investigation went public, claiming the decision was driven by “ongoing and relentless stories” about the union. Prime Minister Albanese’s response was one word: “Good.”

Within weeks, the federal government passed legislation to place the CFMEU’s Construction and General Division under external administration for up to five years. Mark Irving KC was appointed as administrator, with a mandate to clean out the existing leadership structure.

Then, in October 2024, Setka allegedly responded to a production notice from Irving with a series of threatening and abusive emails. Nine of them, reportedly sent over four days. He was arrested in November 2025 by Taskforce Hawk, a joint police unit dedicated specifically to criminal activity in the construction industry.

This week, his lawyer appeared in court seeking an adjournment while disclosures are gathered from Victoria Police and the CFMEU. The case has been adjourned to a special mention hearing in September. Setka’s lawyer also told the court his client has received death threats. When asked how he felt about that outside court, Setka said “happy” and kept walking.

The man faces a maximum of three years in prison if convicted. The case continues.

How does this kind of corruption actually take hold?

This is the question most media coverage skips over. It is worth answering plainly.

Construction is a sector built on physical access. If a union can control who gets on site, who gets work, and which subcontractors get used, it has enormous leverage. That leverage is worth money to the right people.

The CFMEU’s power in Victoria grew partly from pattern bargaining: pushing identical enterprise agreements across dozens of employers at once. If you want to work on a major project, you sign the EBA. If you do not, your workers get squeamish, your access gets complicated, and your project timelines start looking shaky.

That is the legitimate version of union influence. The illegitimate version, as alleged in the 60 Minutes investigation, involved bikie-affiliated delegates using standover tactics, criminal networks being handed lucrative delegate roles, and employers who knew exactly what was happening but played along because the alternative was worse.

Courts have previously found that coercion of employers to sign union agreements, where the pressure leaves an employer with no real choice, is unlawful under the Fair Work Act. The problem is that by the time a case reaches court, the damage is already done. Projects are built. Agreements are signed. Money has moved.

The CFMEU is not the only union that has ever operated this way, and construction is not the only industry where this kind of pressure exists. But the scale of what has been alleged here, and the length of time it appears to have gone on, makes it the sharpest example Australia has seen in decades.

What does this actually mean for employers outside construction?

Plenty. And not just for builders and contractors.

The lesson here is not that unions are bad. Workers have every right to be represented, and a well-run union does important work. The lesson is that employers who are passive about their industrial arrangements tend to end up in someone else’s framework, on someone else’s terms.

If you are operating without an enterprise agreement and a union decides to come knocking, you are negotiating from a standing start. You have no existing architecture to point to, no agreed conditions to defend, and no documentation that shows you have already thought carefully about your people arrangements.

An employer-led EBA, negotiated directly with your workforce before a union enters the picture, changes that dynamic entirely. It lets you set the terms. It lets you build in flexibility that works for your business. And it demonstrates to your employees that you are on the front foot.

That is not anti-union. It is just good IR strategy.

What should employers be doing now?

• Understand your award obligations. Whether you are covered by the SCHADS Award, the Building and Construction General On-site Award, or anything else, you need to know what your baseline obligations actually are.
• Consider whether an enterprise agreement makes sense for your business. Not every employer needs one. But if you are in a sector with active union coverage, a well-structured EBA can give you significantly more control over how your workplace runs.
• Know your rights if a union contacts you. You are not obliged to sign anything. You have the right to negotiate, seek independent advice, and take your time. Coercion is unlawful. If you feel pressured, get help.
• Document everything. If a union official makes a representation to your workers or makes demands on your business, write it down. If it ever becomes a legal matter, that record matters.
• Talk to your employees directly. The employers who get caught flat-footed in union situations are often the ones whose workers did not feel heard. Good people management is your best industrial relations strategy.

The bottom line

The CFMEU saga is still unfolding. Setka is in court. The administration is ongoing. Taskforce Hawk is still investigating. This story has more chapters left.

But the broader lesson is already clear. When industrial power is not matched by accountability, things go wrong. For employers, the answer is not to wait and see what happens. It is to build the kind of workplace where you are already ahead of the conversation.

If you are not sure where your business stands on this, that is worth finding out.

Want to get ahead of your IR arrangements?

HR Gurus helps employers understand their options, structure enterprise agreements that work for their business, and navigate union activity with confidence. Get in touch.