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CFMEU Administrator Resigns, NSW Official Dismissed Amidst Ongoing Union Reform

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CFMEU Leadership Shake-Up Continues Amid Federal Administration

The Construction, Forestry, Maritime, Mining and Energy Union (CFMEU) continues to undergo significant leadership changes following its placement under federal administration in August 2024. Administrator Mark Irving KC has resigned, with Michael Crosby appointed as his replacement. Simultaneously, Victorian construction coordinator Nigel Davies has been dismissed by the administrator over allegations of misconduct. These events follow the recent resignation of national secretary Zach Smith.

Administrator Transition

Mark Irving KC resigned as administrator of the CFMEU, effective immediately. In a memo to union members, Irving stated the union is entering a "rebuilding" phase that requires different skills. He has delegated his powers to Michael Crosby, who has been described as an experienced union leader. Irving will remain as senior counsel.

The resignation followed Irving's earlier departure of deputy Zach Smith, who resigned as national secretary in January 2025 amid allegations of misconduct involving two female employees. Irving had initiated an internal investigation into Smith's conduct after one woman reported a consensual intimate relationship with Smith, which he had denied to Irving, and another raised further concerns about his conduct. Smith has not responded to requests for comment.

"Expedience is not a sufficient justification for breaching confidences or disrespecting the privacy of others." — Mark Irving KC

Irving cited health issues (two heart attacks) and security threats as factors in his decision. He declined to discuss specifics of the allegations against Smith.

A government spokesperson thanked Irving for his work over the past 20 months. Australian Constructors Association CEO Jon Davies called the timing of Irving's resignation "surprising."

Michael Crosby was installed as administrator by the Fair Work Commission after Irving's resignation. Crosby had previously summarily sacked several NSW CFMEU organisers over alleged continued ties to jailed union boss Darren Greenfield.

Victorian Official Dismissed

On Tuesday morning, CFMEU construction coordinator Nigel Davies was dismissed by administrator Michael Crosby and Victorian branch chief Matthew MacGowan.

Davies was sacked over allegations he improperly pressured former CFMEU organiser Paolo Giumarra to leave his position on the board of LeavePlus, Victoria's portable long service leave scheme. Davies sought to replace Giumarra with CFMEU national secretary Dave Noonan.

Sources said Davies threatened to expose an alleged $5,000 benefit Giumarra received from a hospitality venue, though Giumarra had already repaid the amount. Giumarra is not accused of wrongdoing. Davies also allegedly had Giumarra removed from his union delegate role at a building company.

There is no suggestion that Davies acted unlawfully, only that his interactions with Giumarra caused the administration to lose faith in his leadership. Davies was appointed last year after former coordinator John Perkovic was sacked over corruption allegations.

Davies, Crosby, Giumarra, and MacGowan could not be reached for comment.

National Secretary Resignation

Zach Smith resigned as national secretary of the CFMEU in late 2024, citing personal reasons. Smith assumed leadership of the union nationally and in Victoria under the oversight of administrator Mark Irving KC.

His tenure faced criticism, including perceived ties to former Victorian secretary John Setka and a decision to have an official meet with gangland figure Mick Gatto regarding an industrial dispute. Following the revelation of the Gatto meeting, Smith resigned from the Labor Party's top executive committee.

Smith reportedly took measures to address corruption, including demanding that union members cease dealings with figures like Gatto and members of outlaw motorcycle gangs. He oversaw or supported the removal of several dozen union officials, including those associated with outlaw motorcycle gangs.

The remaining union leadership at the time, including Lisa Zanatta, Nigel Davies, Gerry Ayers, and David Vroland, confirmed Smith's departure. Internal sources indicated that Smith's decision was motivated by a desire to prioritize his family.

Background and Broader Context

The CFMEU has been under federal administration since August 2024 following reports of corruption and organized crime links.

Irving's tenure included sacking suspected bribe-taker John Perkovic and tightening policies to exclude gangland figure Mick Gatto from construction sites.

The Victorian branch has seen multiple leadership changes in rapid succession:

  • Graeme McCulloch (weeks)
  • Zach Smith (18 months)
  • Nigel Davies (three months)
  • Matt McGowan has been appointed to lead the Melbourne headquarters

A Queensland commission of inquiry into the CFMEU continues to produce reports on the union's conduct, with hearings ongoing.