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RR RUEHPT
DE RUEHBN #0095/01 2240356
ZNY CCCCC ZZH
R 120356Z AUG 09
FM AMCONSUL MELBOURNE
TO RUEHC/SECSTATE WASHDC 4988
INFO RUEHBY/AMEMBASSY CANBERRA 3631
RUEHPT/AMCONSUL PERTH 1604
RUEHDN/AMCONSUL SYDNEY 2123

C O N F I D E N T I A L SECTION 01 OF 03 MELBOURNE 000095 
 
NOFORN 
SIPDIS 
 
STATE FOR INR 
 
E.O. 12958: DECL: 08/11/2019 
TAGS: PINR PREL PGOV AS
SUBJECT: RIGHT OF CENTER UNIONS DOMINATE IN VICTORIA 
 
REF: A. MELBOURNE 69 
     ¶B. CANBERRA 305 
     ¶C. CANBERRA 188 
 
Classified By: Justin Kolbeck, Pol/Econ Officer for Reasons 1.4 (b),(d) 
 
Summary 
------- 
 
¶1. (C/NF) Unionized workers represent almost twenty percent 
of the Australian workforce, yet hold disproportionate 
political influence in federal and Victorian politics. 
Victorian right-of-center unions maintain a powerful sway 
over federal and state Ministers by engaging in backroom 
diplomacy, funding political campaigns and grooming future 
MPs; this is further strengthened by the recent mending of a 
recent rift within "the Right."  By contrast, the 
left-leaning unions in Victoria have seen their influence 
diminish.  Labor unions in Victoria, which supplies one third 
of the federal cabinet, show no sign of relinquishing their 
influence over Australian politics.  End Summary. 
 
Right Unions Dominate 
--------------------- 
 
¶2. (C/NF) Labor unions in Victoria divide into right and left 
leaning ideological blocs that have very different modus 
operandi.  The "Right" currently wields more influence than 
the "Left" in accessing the levers of governmental power. 
The right-leaning Australian Workers Union (AWU) told post 
that it has a "great" relationship with the Victorian 
government.  By contrast, the left-leaning Construction, 
Forestry, Mining, and Energy Union (CFMEU) complained that it 
has "no access" to the Victorian cabinet, including the state 
minister specifically designated to interface with labor 
unions.  In addition, the Right cultivates a robust stable of 
Members of Parliament (MPs), to whom they are able turn in 
private discussions.  Australian unions, however, operate 
with substantially fewer funds than their U.S. counterparts. 
 
The Right 
--------- 
 
¶3. (SBU) The right leaning bloc includes the Australian 
Workers Union (AWU), National Union of Workers (NUW), Health 
Services Union (HSU), and the Shop, Distributive and Allied 
Employees Association (SDA), which all unite under the 
Australian Council of Trade Unions (ACTU).  The ACTU is a 
left-of-center peak organization which attempts to represent 
Australia's entire labor movement.  In a conversation with 
Cesar Melhem, Victorian Secretary of the AWU, post learned 
that the AWU works diligently to place its own members in 
parliamentary positions, both at the federal and state 
levels.  This includes Bill Shorten, MP who was a former AWU 
National Secretary (bio - Ref. A).  The NUW told us that it 
had moved away from an emphasis on grooming future MPs during 
the Howard government, but is now beginning to operate in 
much the same way.  The NUW's Victorian Secretary, Antony 
Thow, will run for a federal senate seat against incumbent 
swing Senator Steve Fielding who is widely expected to lose 
his seat in the next election. 
 
¶4. (C/NF) The right-leaning unions, particularly the AWU, 
also wield considerable influence among Australia's senior 
Ministers.  For example, Melhem told us that the AWU used a 
"well-researched and backroom policy" to persuade Prime 
Minister Rudd and Climate Change Minister Penny Wong to "slow 
down and consider the costs" associated with the Climate 
Pollution Reduction Scheme (CPRS).  In addition, the AWU 
holds two out of six seats on the National Selection 
Committee, which is chaired by the Prime Minister.  This 
group is responsible for allocating the ALP's federal 
parliamentary seats.  Putting her role into context, Kathy 
Jackson, the HSU's National Secretary told us that she and 
other Union Secretaries wield at least as much influence as 
junior state ministers at the state level by controlling who 
is selected to run for Parliament (Ref. C). 
 
¶5. (C/NF) Dynamic and forward thinking union leadership in 
the Right has contributed to the faction's influence on 
government.  In visiting the AWU, HSU and NUW, post was 
struck by the high quality of those unions' leaders.  Post 
found leaders at these three unions to be very energetic and 
involved, with an eye on increasing influence and building 
effective relations with the government.  NUW Victorian 
Secretary Antony Thow and AWU Victorian Secretary Cesar 
Melhem are articulate, diplomatic, and especially impressive 
leaders.  Jackson will likely see her union's numbers swell 
 
MELBOURNE 00000095  002 OF 003 
 
 
as jobs move away from the manufacturing sector and into 
areas such as health care.  She struck us a sharp and 
well-connected ALP insider.  The AWU, HSU and NUW employ a 
younger cadre of workers, and exhibit an open, modern, and 
active office space. 
 
The Left 
-------- 
 
¶6. (C/NF) The left-leaning unions, which include the CFMEU 
and the Australian Manufacturing Workers Union (AMWU), have a 
very different way of operating.  Post learned from CFMEU 
National Secretary Dave Noonan and Victorian Secretary Bill 
Oliver that the CFMEU utilizes a much more public and 
antagonistic form of lobbying.  This characteristic has led 
Deputy Prime Minister Julia Gillard and other ALP officials 
to publicly distance themselves from the CFMEU.  The CFMEU 
regularly holds public protests in front of the Australian 
Building and Construction Commission (ABCC - which shares a 
building with post) and has staged large-scale, aggressive 
strikes on major construction projects in Melbourne, voicing 
their opposition to the ABCC.  The CFMEU sees the ABCC as a 
heavy handed industrial watchdog and has effectively turned 
their union into a single-issue organization, focused 
relentlessly on persuading the GOA to eliminate this 
Howard-era entity. 
 
¶7. (C/NF) This myopic focus appears to have led the CFMEU 
into the political wilderness.  Oliver and Noonan told post 
that they felt "betrayed" by Prime Minister Rudd's decision 
not to abolish the ABCC after he reportedly promised the 
CFMEU and other unions that he would do so in a pre-election 
private meeting.  In retaliation, Noonan and Oliver said that 
they would not support the ALP in the next federal election 
(read: cut off campaign funding).  (Comment: This is a 
relatively empty threat as the CFMEU is unlikely to support 
the Liberal party and will, at best, knock off rivals within 
the ALP by supporting the Green party in key constituencies. 
End comment.) 
 
¶8. (C/NF) The CFMEU and the AMWU told post that they have 
little interest in grooming MPs.  (Comment: This reveals a 
disconnect with the political system, as the Victorian 
Secretary for the AMWU, Steve Dargavel, is a former MP from 
the Australian Capital Territory (ACT).  End Comment.) 
Instead, they are externally active, and are prone to 
organizing high-visibility activities such as picket lines, 
strikes and protests. 
 
¶9. (C/NF) Oliver and Noonan struck post as being very 
energetic, seasoned, and capable leaders ready to roll up 
their sleeves and fight the good fight.  By contrast, the 
AMWU Victorian Secretary Steve Dargavel appeared reserved, 
worn, and rather uncharismatic.  This sentiment was echoed by 
the leadership of the AWU.  The CFMEU and the AMWU employ an 
older staff, and have closed, cubicle-based, and relatively 
antiquated office space that contributes to a less energetic 
and friendly atmosphere. 
 
Mergers? 
-------- 
 
¶10. (SBU) Post learned from the AWU and NUW that some unions 
are considering mergers in the future.  The AWU is 
considering a merger with the AMWU, thus bridging the 
left-right divide, though post was told the merger will not 
happen "soon."  Federal Member of Parliament Richard Marles 
told post that while ideology is still a good indicator of 
union actions, it no longer has the traction that it did in 
the past (Ref C).  The NUW indicated its willingness to 
listen to any and all merger overtures, but maintains that a 
key to influence is the ability to effectively marshal union 
membership to support ALP candidates.  The larger a union 
grows, the more difficult keeping this discipline can become. 
 The NUW recently considered merging with the AWU, but post 
was told that the AWU backed away. 
 
The Split in the Right and Its Resolution 
----------------------------------------- 
 
¶11. (C/NF) Recently, a split occurred among the Victorian 
right-leaning labor unions after a deal for parliamentary 
seats went bad (Ref C).  Post was told by the AWU and the NUW 
that the split is now resolved after a meeting on July 10 
brought together the AWU, NUW, HSU, and SDA leadership to 
decide the fate of two parliamentary seats.  Kathy Jackson, 
from the HSU, however, noted that these problems may flare up 
again at any time if the personalities involved fail to reach 
 
MELBOURNE 00000095  003 OF 003 
 
 
consensus on parliamentary seat pre-selection. 
 
Scope of Labor Unions 
--------------------- 
 
¶12. (SBU) The biggest left-of-center unions, the CFMEU and 
the AMWU, have 120,000 and 130,000 national members, 
respectively.  The biggest right-leaning unions, the AWU and 
the SDA, have 135,000 and 230,000 national members, 
respectively.  The SDA is the biggest trade union in 
Australia.  Some unions, like the AMWU, have lost many 
members due to the economic downturn and hard-hit industries. 
 All unions are feeling the effects of the global slowdown 
and some of their constituents are suffering. 
 
Comment 
------- 
 
¶13. (C/NF) While union membership numbers in Victoria remain 
at best stable, the influence of the unions over the ruling 
Australian Labor Party shows no sign of diminishing.  As was 
the case with Australia's Carbon Pollution Reduction Scheme, 
labor unions here continue to play a significant role in the 
formulation of national policies that can impact the United 
States.  Recent changes to the workplace relations 
legislation (Fair Work Australia bill - Ref. B) will empower 
unions further and will likely strengthen their influence 
over Australian policies. 
 
THURSTON