Major job losses as union cops huge blow

The construction and general division of the CFMEU has been placed into immediate administration by the federal government following allegations of links to criminal gangs that sparked the passing of new laws.

Attorney-General Mark Dreyfus made the announcement on Friday morning, declaring it was “in the public interest” to take the extraordinary stance against the union following alleged reports of endemic corruption and links to criminal gangs in its construction arm.

Victorian barrister Mark Irving KC has been appointed as the administrator, after he was tapped by the Fair Work Commission earlier this month.

“The scheme of administration of the Construction and General Division of the CFMEU takes effect immediately,” he said.

Former CFMEU Victorian state secretary John Setka, who was alleged to have allowed bikies and members of organised crime to act as union delegates, declined to comment on the news.

He has previously denied the allegations against him.

The news is expected to result in about 270 officials being axed from their roles at the union, Nine Newspapers reports.

Friday’s move comes after Labor and the Coalition came to bipartisan agreement to pass the legislation necessary to place the union into administration.

It passed the Senate on Monday with 39 yes and 10 no votes after the government conceded to the Coalition’s demands to increase the minimum administration term to three years, plus conditions for the administrator to report to parliament every six months and attend senate estimates.

While there will not be a legislated ban on the CFMEU making political donations while under administration, Coalition workplace spokeswoman Michaelia Cash said on Monday she had received assurances from Mr Watt that safeguards would be put in place.

The CFMEU have slammed the new law, with national secretary Zach Smith saying earlier in the week allegations of criminal activity had been taken seriously by the union, with officials stood down or removed.

But, he said, the allegations had not been tested in court.

“Until allegations have been tested by the legal system, people and organisations are entitled to a fair process,” he said.

The Fair Work Commission’s general manager Murray Furlong vowed to work with Mr Irving in an “open and transparent” way to restore good governance and voluntary compliance, and instill high standards of accountability within the union.