Economy

Despite corruption crackdowns, Gatto still involved with union

To describe Smith’s decision to agree to the clandestine meeting as a mistake is a gross understatement. There is no scenario where he should have encouraged the Gatto meeting.

Australia’s industrial relations system allows numerous formal and informal mechanisms to deal with disputes, in particular in the building industry. None require the involvement of gangland figures.

It’s a significant failure of both Smith and the Albanese government’s administration that 14 months on this could happen. It also directly cuts against administrator Mark Irving’s demands the union cease its clandestine dealings with figures such as Gatto.

There is little the CFMEU can do if builders want to pay Gatto to resolve disputes – that reflects on the builder or, depending on the context, is a question for the authorities.

Irving himself has said industrial fixers such as Gatto are often no more than “enforcers” who trade on “intimidation” and must be “stamped out”. If a union run by a federal government-appointed administrator still acts this way, what hope is there ever for a clean CFMEU? What is the point of the administration?

It goes without saying that fixers such as Gatto don’t exist to improve the working conditions or lives of building workers – in fact, their role is the opposite. They are hired by bosses to make union problems go away; often an assault on CFMEU members’ working conditions.

One example from 2020 highlights this point, when thugs bashed one of the CFMEU’s organisers on a Hawthorn East building site.

Instead of involving police, or a lengthy industrial campaign targeting the builder, the response within days was a secret meeting between Setka and Gatto.

Soon after, the problem went away with no justice for the organiser who was bashed, nor it seemed the underlying issues. Instead, the only change was that the CFMEU flag flew from a crane on site. It’s how business has been done for decades. And apparently still is.

Ben Schneiders is an investigative reporter who worked at The Age for nearly 20 years, an author, a multiple Walkley award winner and a four-time winner of the Industrial Relations reporting award.

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