Politics
14 min read
CFMEU Boss Zach Smith's Shock Exit Cites Personal Reasons
theage.com.au
January 21, 2026•1 day ago
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CFMEU boss Zach Smith has abruptly resigned, citing personal reasons. Smith, who was backed by the ACTU to reform the scandal-tainted union, oversaw significant reforms including sacking corrupt officials and limiting underworld influence. His departure follows controversy over his judgment and past decisions. Lisa Zanatta and Nigel Davies will jointly lead the branch on an interim basis.
January 21, 2026 — 5:45pm
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The union boss backed by the Albanese government to reform the scandal-tainted CFMEU has abruptly quit his position, citing personal reasons.
Zach Smith’s departure shocked many in the union movement, given the Australian Council of Trade Unions (ACTU) had backed him for months to help rebuild the construction union after it was plunged into crisis over allegations of serious corruption and organised crime infiltration.
Smith took over the union nationally and in Victoria in late 2024, under the watch of administrator Mark Irving, KC.
Many within the CFMEU heavily criticised Smith over 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.
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Smith also drove many significant reforms, overseeing the sacking of multiple powerful unionists, including allegedly corrupt senior CFMEU figure John Perkovic and implementing policies to limit the underworld’s influence on the union.
He stepped down as the CFMEU’s national secretary in May to focus on the union’s troubled Victorian branch.
Union leaders have privately praised Smith 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 some of his strongest backers 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.
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He quit the Labor Party’s top executive committee late last year after the controversial Gatto park meeting was revealed, prompting a political storm.
Smith also put himself under significant personal threat by demanding that those in the union cease their dealings with figures like Gatto and members of outlaw motorcycle gangs.
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.
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The statement - from Lisa Zanatta, Nigel Davies, Gerry Ayers and David Vroland - thanked Smith for his 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, which probably guaranteed the long-term survival of a union many in conservative politics want to see deregistered.
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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 tipped to reappear within the labour movement.
Smith was one of the senior union figures to keep their roles in the wake of the Building Bad series that outlined allegations of intimidation and criminal infiltration that had spurred the ousting of more than 300 officials around the country.
NSW state secretary Darren Greenfield, and his son Michael, were jailed in November after pleading guilty to corruption offences.
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Nick McKenzie is an Age investigative journalist who has three times been named the Graham Perkin Australian Journalist of the Year. A winner of 20 Walkley Awards, including the Gold Walkley, he investigates politics, business, foreign affairs and criminal justice.Connect via email.
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