‘Personal reasons’ cited as CFMEU boss makes shock exit

The union boss backed by the Albanese government to reform the scandal-tainted CFMEU has abruptly quit his position citing personal reasons.

The departure of Zach Smith has shocked many in the union movement, given he has been backed for months by the ACTU to help rebuild the construction union after it was plunged into crisis over allegations it had been plagued by serious corruption and infiltrated by organised crime.

Smith took over the union nationally and in Victoria in late 2024 and under the watch of administrator Mark Irving, KC.

Smith was heavily criticised by many within the CFMEU because of his perceived ties to exiled and disgraced Victorian secretary John Setka, as well as his controversial decision – revealed by this masthead last year – to order one of his officials to meet gangland figure Mick Gatto in a park to discuss an industrial dispute.

Smith also drove many significant reforms, overseeing the sacking of multiple powerful unionists including allegedly corrupt senior CFMEU figure John Perkovic and implementing a range of policies designed to limit the influence of the underworld on the union.

He stepped down as national secretary in May to focus on the union’s troubled Victorian branch.

Smith has been privately praised by many union leaders as having integrity and a bright future within the trade union movement and the Labor Party, but during his, at times controversial, leadership of the CFMEU even his some of his strongest backers at times questioned his judgment.

For instance, Smith made the disastrous decision to promote Perkovic to a key CFMEU role just months before he was forced to sack him for suspected corruption including receiving up to $3 million in suspect payments from building company owners.

Smith also put himself under significant personal threat by demanding those in the union cease their dealings with figures like Gatto and members of outlaw motorcycle gangs.

But Smith oversaw or backed the removal of several dozen union officials including those associated with outlaw motorcycle gangs.

In a statement confirming Smith’s departure, the union’s remaining leadership said he had worked tirelessly to maintain its strength.

The statement - from Lisa Zanatta, Nigel Davies, Gerry Ayres and Dave Vroland - thanked Smith for is work and commitment.

“He started in the movement when he was 19, and he has worked passionately on behalf of workers all of that time,” the statement said.

The statement said Zanatta and Davies would jointly run the branch on an interim basis.

One veteran union figure described Smith as “principled and courageous” and said he had never been given credit for the difficult reform program he implemented alongside Irving and which probably guaranteed the long-term survival of a union many in conservative politics want to see deregistered.

In an internal email, Smith said his decision to quit was because of personal reasons, and sources, not permitted to speak publicly, told this masthead he wished to prioritise his family.

While some in the CFMEU said they were “gutted” by his departure, others said Smith was unable to solidify his leadership and welcomed his resignation.

Smith has a range of long-term backers in the ACTU and the Labor Party and is likely to reappear within the labour movement.

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