Union Struggles as Membership Drops 17%

The CFMEU is working to stabilise its future after a steep drop in membership. Internal tensions and changes in leadership are making recovery more difficult. New data shows a 17% decline in the New South Wales branch over the past year, cutting membership from nearly 18,000 to under 15,000. This drop reflects a major blow to the union's influence.

The Construction, Forestry and Maritime Employees Union was placed under federal administration in August following reports of underworld connections. This action removed dozens of senior officials, excluding those in the ACT and Western Australia, and will remain in effect for at least three years. The administration falls under new laws designed to restore order and accountability.

Although the CFMEU says it has plans to stabilise troubled branches, it faces serious ongoing challenges. New South Wales and South Australia were impacted the most, both showing declines of 16% to 17%. In contrast, branches such as Queensland and Victoria remained steady or grew slightly. Queensland even moved past New South Wales to become the union's second-largest branch. Nationally, the CFMEU saw a membership decrease of about 4% over the past year.

The decline cannot be explained by market conditions alone. For example, construction activity fell more sharply in the ACT, where commercial approvals dropped 17%. However, the heavier fall in New South Wales is more concerning. The state was once a stronghold, but lingering influence from former officials removed due to corruption continues to harm efforts to rebuild trust.

Leadership struggles are also adding to confusion. Since stepping down from his national role, a former CFMEU leader has maintained significant influence from a new base in Victoria. This raises questions about who is actually guiding the union. Reports also suggest that a legal director is now managing the national office on a day-to-day basis.

The future of the union will depend on whether the administration can carry out its reform plans, reduce internal conflict and rebuild its membership. Long-term oversight is in place, and although progress differs between states, recovery is still possible.

Source: Australian Financial Review