An independent external administrator will be appointed to the CFMEU as the fallout from explosive allegations about the conduct of officials and links to criminal gangs continues.
Federal Minister for Employment and Workplace Relations Tony Burke revealed the plan to appoint an administrator on Wednesday.
The plan was reiterated by Prime Minister Anthony Albanese at a press conference the same day.
The intervention will occur via the Fair Work Commission, the PM said, for the union’s New South Wales, Queensland and Victoria branches, which also covers its South Australian and Tasmanian offices.
The CFMEU represents around 100,000 construction workers.
“We think this is necessary. Part of [the measures] will be a suspension from engagement with the Labor party,” Albanese said.
Meanwhile, the ACTU said it had suspended the construction and general division of the CFMEU.
ACTU secretary Sally McManus said it had zero tolerance for criminal elements and corruption.
“They do not represent us. That behaviour does not represent us, does not represent the trade union movement,” McManus said.
She urged CFMEU leadership to co-operate with the administrator.
Also on Wednesday, Burke said he had asked the Australian Federal Police to investigate the corruption allegations against the CFMEU in tandem with state police investigations and to “prosecute any criminal breaches”.
Victoria’s Big Build infrastructure project has been implicated in the allegations and CFMEU agreements on Big Build project sites will be scrutinised.
“I have requested the Fair Work Ombudsman undertake a targeted review of all enterprise agreements made by the Victorian branch of the construction division of the CFMEU that apply to Victorian Big Build projects,” Burke said in a statement.
“I stress as part of this review the government is seeking information on coercive behaviour and has no intention of taking any action which would put at risk terms and conditions of employment for the workers covered by these agreements. This is not their fault.
“The government will use its procurement powers to ensure that enterprise agreements used on government funded projects are genuinely agreed and that workplaces are free from coercion and intimidation.”
The Victorian CFMEU entered administration on Monday after the departure of its secretary John Setka on Friday (July 12).
This was followed by an administrator being appointed to the Queensland CFMEU branch on Wednesday.
NSW’s Labor Government has also taken a hard stance.
“The revelations that have come to light this morning are appalling,” the state government said in a statement Wednesday.
“It is clear the CFMEU Construction & General Division will not and cannot clean itself up.
“Given the serious nature of the allegations, we have written to the NSW Labor Party General Secretary and asked they take the necessary steps to immediately suspend the CFMEU Construction and General Division’s affiliation from the NSW Labor Party and stop any donations or affiliation fees.”
The state government said it was co-ordinating with the Federal Government on a “coordinated approach” to dealing with the fallout from the CFMEU allegations.
Wednesday’s developments were largely welcome by industry bodies. The Australian Constructors Association chief executive officer Jon Davies said that while the joint media investigation uncovered criminality and corruption in the Victorian branch, “the problems are not limited to Victoria”.
“This action, as opposed to de-registration, will importantly mean that workers will still have access to workplace representation if needed,” Davies said.
“It should not be forgotten that lawful and well-run unions play an important role in maintaining a safe workplace and representing workers on pay and conditions.”
