Major update on CFMEU action

A Bill to crack down on the controversial CFMEU will be introduced next week after the union failed to agree to the appointment of an administrator to clean it up.

New Workplace Relations Minister Murray Watt on Friday said the Bill allowing him to appoint an administrator to sections of the building and construction union in Victoria, NSW and Queensland would now go before parliament when it resumes next week.

“We cannot stand by and allow a once proud union to be infiltrated by bikies and organised crime or have bullying and thuggery as part of its day-to-day business,” Senator Watt said.

“We’ve drafted this in a way to withstand a legal challenge, and that’s why there are a couple of steps in the legislation to ensure that it can hold up in court because I think you can bet your bottom dollar that the CFMEU we’ll try and challenge it.”

Senator Watt had given the CFMEU till 5pm on Thursday to consent to a Fair Work Commission application to put them into ­administration.

He said national secretary Zach Smith had only responded at 5.09pm on Thursday to say “consenting to the application only remains a possibility”.

He said the legislation was being introduced because “it is absolutely clear” the CFMEU was waiting for FWC manager Murray Long’s application to make its way through the courts.

Mr Furlong last Friday filed a case in the Federal Court seeking to appoint barrister Mark Irving KC as administrator of the CFMEU’s construction and general division branches across Victoria, NSW, South Australia, Tasmania, Queensland and the Northern Territory.

That would “take far too long given the seriousness of the (alleged) issues that we are dealing with,” he said.

“That is why we are moving ahead with legislation to provide me with the opportunity to appoint an administrator, if I decide that is in the public interest.”

Senator Watt said the legislation would be designed to shut down any opportunities for the militant union to stall the administration process, and said the Bill was targeting the CFMEU only.

“This is a significant step taken to clean up one division of one union. The legislation will not apply to other unions or divisions of the CFMEU, other than the construction and general division,” Senator Watt said.

Action against the CFMEU follow a series of allegations of corruption, bribery and bullying in the construction arm of the union.

The joint investigation by the Sydney Morning Herald, The Age and 60 Minutes led to the resignation last month of CFMEU Victorian boss John Setka, who has denied the allegations.

The ACTU has suspended the construction and general division and the ALP’s national secretary Paul Erickson has suspended “until further notice” the union’s construction divisions in NSW, Victoria, South Australia and Tasmania, including donations.

The Daily Telegraph reported this week that fines of up to $4.6m and two years in prison await CFMEU officials who attempt to interfere with the administrator tasked with cleaning it up.

Destroying business records or membership lists, transferring assets to hide them and other actions that “obstruct or frustrate” the administration work would result in massive fines for the organisation and up to $1m in penalties for individuals.