The Fair Work Commission has cleared the way for a complete takeover of the CFMEU’s national, state, and territory divisions amid allegations of criminal activity against the union.
The Construction, Forestry, Mining Employees Union came under fire last month after a Nine Newspapers exposé accused the organisation of having links to organised crime and the bikie underworld.
The fallout has led the Labor government to cut ties with one of its biggest financial supporters and nominate an administrator to clean up the CFMEU’s construction arm.
A legal showdown is now hotly anticipated in order to prevent or slow any overhaul of the organisation, with questions emerging over whether the Fair Work Commission has the power to obtain the critical evidence needed.
The FWC has asked the federal court to appoint Victorian barrister Mark Irving KC to take command of the union, which could involve removing around 270 officials and obtaining control of the group’s finances.
However, the court must hear and consider this application before the takeover can proceed, which could form a major roadblock in the government’s bid to clean out the union and ultimately repair its reputation.
If approved, Irving will wield sweeping powers to restore order and legality to the embattled union.
Proposed administrator powers:
- Remove officials and staff from positions
- Take possession of all property
- Exercise votes
- Bring proceedings to recover funds
- Impose penalties and award compensation
- cooperate with investigations
- Establish, amend and implement policies
- Certify divisions are functioning effectively
The proposed administration scope would cover the CFMEU’s construction and general divisions within the Victoria-Tasmania, New South Wales, Queensland, Northern Territory, and South Australian branches.
Western Australia and the Australian Capital Territory would initially be excluded but could be brought in under the proposal later.
If appointed, Irving will be responsible for ensuring that the various CFMEU branches function effectively and lawfully and that union members’ rights continue to be protected.
Building industry representative Master Builders Australia praised the administration application but said including administrative powers extending to the ACT and WA was also essential.
“We commend the strong and positive stance of the federal government in getting behind the application and will seek their support for future inclusion of these key jurisdictions,” a spokesperson said.
“Everyone in building and construction recognises the important role that unions play in workplaces, but it’s clear some within the CFMEU have lost their way.”
They described the appointment of an administrator as an “important first step” towards tackling the criminality and the poor culture within the sector, which has led to the CFMEU fallout.
“This starts with making sure strong and comprehensive protections are in place for people wishing to come forward with evidence, information, or materials to support the various investigations and inquiries underway,” they said.
“We all, whether as employers, workers, or union members, deserve to work in an industry that is lawful, safe, and free from corruption, coercion, bullying, and intimidation.”
“This is a unique opportunity for governments at all levels to ensure that the building and construction industry is lawful, modern, safe, and productive now and in the future.”
