The Federal Government introduced new legislation into parliament yesterday in a bid to armwrestle the Construction Forestry and Mining Employees Union into administration.
If passed, the new laws will force the CFMEU to accept an administrator to take control of the disgraced union, which has come under fire since the publication of a 60-minute expose that found it was infiltrated by bikies and organised crime.
The fallout from that media sting has continued to intensify since its publication, with CFMEU NSW Assistant Secretary Michael Greenfield the latest union figure to step down from their role in the wake of the investigation.
Meanwhile, other CFMEU decision-makers are blocking its former government allies’ efforts to “clean up” the organisation through the appointment of an administrator, challenging the move in court and prompting Workplace Minister Murray Watt to introduce a bill to parliament on Monday in an attempt to force the union’s hand.
The Fair Work Commission had previously requested the federal court appoint Victorian barrister Mark Irving KC to take command of the union, which could lead to the removal of around 270 officials and obtaining control of the group’s finances.
However, the government now hopes to fast-track that decision via parliament instead, with negotiations already underway with the Greens, who could hold the balance of power.
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 Coalition has all but confirmed it will reject the proposal. Instead, it seeks the CFMEU’s full deregistration, an inquiry, and the re-establishment of the defunct Australian Building and Construction Commission.
Coalition workplace spokeswoman Michaelia Cash said she was concerned the legislation did not go far enough to prevent the situation from repeating and gave Workplace Minister Murray Watt too much power.
“There is a drop-dead end date of three years; worse than that, individuals can only be banned for up to five years. These people are very good at waiting the government out,” she said
“It’s up to Murray Watt when the administration ends, he can end it before the three years, it’s up to Murray Watt which parts of the union stay in administration and don’t, it’s up to Murray Watt what actually goes into the dean of administration, there is no transparency here.”
Signs of legislative delay irks industry bodies:
With further hold-ups in parliament now likely, peak building and construction industry associations have pressured lawmakers to pass the bill unopposed.
Master Builders Australia says the legislation was an essential step to rid the industry of toxic and lawbreaking culture.
“We urge all parties to support the legislation currently before them and stress this is only the first in a series of measures that are required to stamp out this culture once and for all,” said Master Builders CEO Denita Wawn.
“The CFMEU has breached workplace law 2,600 times in more than 20 years, accumulating $24 million in fines.
“After decades of this behaviour, it’s clear the union cannot clean up its own backyard, and we think the use of independent administrators, as a first step, is the most effective way to achieve meaningful and lasting change.
Ms Wawn was critical of The Coalition’s calls for the CFMEU’s deregistration and inquiry instead, saying she believed appointing an administrator was the better path for the industry’s future.
“History has shown us that deregistration of construction unions doesn’t work. What we need is long-term, lasting cultural change, which means changing the people who promote and thrive in this environment.
“Calls for yet another review or inquiry, while well-intentioned, will not help government, law enforcement and regulators get on with the job because we already know what the problems are, how they arise, and how to fix them.
However, Masterbuilders suggested they would support the introduction of an industry watchdog similar to the Australian Building and Construction Commission.
“Following the passage of this legislation, the Federal Government should move to establish a dedicated building and construction industry watchdog with real teeth,” Ms Wawn said.
“To ensure the regulator works effectively, it must have oversight on a range of matters, including workplace, safety, competition, corporations, governance and training.”
CFMEU boss maintains innocence in latest step-down:
NSW Assistant Secretary Michael Greenfield’s decision to step down from his position within the organisation comes after years of corruption allegations were fired at the former CFMEU frontman.
In a statement released yesterday, Greenfield says the relentless media government scrutiny and “sensationalised” media reporting had made his job untenable.
“I have always maintained my innocence in relation to bribery charges brought against me three years ago in 2021. I have spent the last three years defending myself while also upholding my duties as the Assistant Secretary of the CFMEU,” he said.
“Attempts to inflate and agitate matters that have been public knowledge since 2021, and frequently the subject of media scrutiny, are insincere and undermine my right to presumed innocence.”
“The extreme pressure that my family has been placed under due to the extreme Government and media bias has left me no choice but to step down to protect my family.”
