Union seeks left shift
The head of the CFMEU has spoken about the union’s plan to influence politics.
Treasurer Jim Chalmers is set to encounter a vigorous campaign led by the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU), aiming to nudge the Labor Party further to the political left on economic policies.
The union's agenda includes the imposition of a super profits tax, scaling back tax breaks for property investors, challenging the Reserve Bank's autonomy, and instituting price controls to combat inflation.
Zach Smith, the newly appointed CFMEU national construction division secretary, has told reporters he wants to prompt a significant shift in economic thinking.
“I want to pull the Labor Party to the left on economics. I don’t think economics works for working people. I think we need to have a massive rethink,” he said.
The campaign comes amid pressures from the Greens and advocacy groups urging Labor to curtail property investment incentives such as negative gearing and capital gains tax benefits.
However, the Business Council of Australia (BCA) has voiced strong opposition, with CEO Bran Black warning of detrimental impacts on jobs, businesses, and overall prosperity.
Central to the CFMEU's strategy is the proposal for a 40 per cent corporate super profits tax, which, according to BIS Oxford Economics, could generate significant revenue for housing initiatives over two decades.
Smith also calls for a reevaluation of negative gearing and capital gains tax exemptions, suggesting a targeted approach rather than outright elimination.
The union's push reflects a broader sentiment within the labour movement, emboldened by positive public response to recent tax policy adjustments.
High-profile union leaders, including Electrical Trades Union national secretary Michael Wright, have echoed calls for economic reform, particularly advocating for a tax system that favours employment over automation.
Despite potential resistance from more conservative union factions, the campaign could be a pivotal moment for the Labor Party, with implications for its economic policy direction and broader debates on national prosperity and equity.
Labor's left faction, historically aligned with Prime Minister Anthony Albanese, appears to be gaining influence, setting the stage for potentially transformative policy debates at the upcoming Australian Council of Trade Unions congress.