A seismic shift has occurred within the CFMEU as its recently appointed reformist leader has abruptly stepped down, citing personal reasons. This unexpected departure has sent ripples of surprise throughout the union landscape, especially considering the significant backing he received from the Albanese government and the Australian Council of Trade Unions (ACTU) to steer the scandal-plagued construction union toward a brighter future.
Zach Smith, who took the helm of the CFMEU nationally and in Victoria in late 2024 under the supervision of administrator Mark Irving, KC, was tasked with rebuilding trust after the organization was rocked by allegations of serious corruption and infiltration by organized crime. But here's where it gets controversial... Smith's tenure was not without its challenges. Many within the CFMEU harbored doubts about his perceived connections to the former Victorian secretary, John Setka, who is now exiled. Furthermore, a revelation from last year cast a long shadow: Smith reportedly instructed an official to meet with notorious gangland figure Mick Gatto in a park to hash out an industrial dispute. This incident alone ignited a political firestorm, leading to Smith's resignation from the Labor Party's top executive committee late last year.
Smith also bravely placed himself in a precarious position by demanding that union members sever ties with figures like Gatto and members of outlaw motorcycle gangs. He actively oversaw or supported the dismissal of dozens of union officials, some of whom were linked to these outlaw motorcycle groups. And this is the part most people miss... Despite these difficult actions, the union's remaining leadership, including Lisa Zanatta, Nigel Davies, Gerry Ayers, and David Vroland, issued a statement acknowledging Smith's tireless efforts to preserve the union's strength and commitment to workers. They highlighted his lifelong dedication, starting at the young age of 19.
Interim leadership will be managed by Lisa Zanatta and Nigel Davies. One veteran union figure lauded Smith as "principled and courageous," suggesting he never received adequate recognition for the demanding reform program he implemented with Irving. This program, it is argued, likely secured the long-term viability of a union that many in conservative political circles wish to see dismantled.
In an internal message, Smith reiterated that his decision was driven by personal reasons, with sources indicating he wishes to prioritize his family. While some in the CFMEU expressed disappointment, others felt Smith struggled to cement his leadership and welcomed his departure. Smith, however, is expected to make a return to the labor movement, given his strong network of supporters within the ACTU and the Labor Party.
Smith was one of the few senior figures to retain his position following the impactful 'Building Bad' series, which exposed allegations of intimidation and criminal infiltration, leading to the removal of over 300 officials nationwide. The consequences of such issues continue to unfold, with NSW state secretary Darren Greenfield and his son being jailed in November for corruption offenses. In Queensland, a royal commission into the construction union is underway, and former state secretary Michael Ravbar's challenge to his removal and the union's administration was unsuccessful. Administrator Mark Irving has indicated that steps are being taken to permanently bar individuals like Ravbar, John Setka, and Derek Christopher from future roles within the union.
What are your thoughts on this sudden resignation? Do you believe Smith's reforms were truly effective, or was his departure inevitable given the controversies? Share your opinions in the comments below!
