The Albanese government has moved quickly, following a deal struck with the Coalition, to sack 270 union officials from their positions and place the Construction, Mining, Forestry and Maritime Employees Union (CFMEU) into administration.

Attorney-General Mark Dreyfus announced on Friday that the CFMEU’s construction arm will be administered by Mark Irving, a Melbourne-based lawyer, who will work alongside the Fair Work Commission to clean up the renegade union.

What does it mean?

Following the Albanese government and the Coalition joining to pass legislation allowing the union to be placed into administration, branch officials across the country discovered they had seven days to vacate their offices and return perks, including vehicles, according to Sky News.

The CFMEU’s New South Wales branch said that it was “shocked and appalled to learn through the media, rather than direct communications from the federal government or the administrator, that 270 officials have been terminated”.

“These officials are hard-working, committed trade union leaders, whose only motivation was to further the conditions of thousands of CFMEU members.

“The state and federal government’s actions have done nothing more than attack the rights and conditions of thousands of CFMEU members and their families.”

National secretary Zach Smith and WA secretary Mick Buchan will remain in their positions but must answer to Irving and have no decision-making powers.

Why was it placed into administration?

The move has sealed the fate of the union after weeks of uncertainty, following allegations in July of criminal activity throughout the CFMEU’s Melbourne branch and by its controversial former secretary John Setka.

Setka resigned before the publication of an investigation by Nine newspapers that alleged that the union had employed known bikies and encouraged businesses to hire them to settle union disputes.

Alleged wrongdoing by former Victorian secretary John Setka is at the heart of alleged criminal activity that has led to the administration. Photo: AAP

The CFMEU’s future

Under the Fair Work (Registered Organisations) Act 2009, administration can last up to five years and any CFMEU official found guilty of a crime can be banned for life from holding similar positions.

The bipartisan legislation dictates that the CFMEU’s administration will last at least three years.

Those who attempt to frustrate or obstruct the process could face hefty fines and two years’ prison, and Irvine has assured the Coalition that the union would not spend money on political campaigns or donations during the takeover.

Murray Furlong, Fair Work Commission general manager, said that he would work collaboratively with Irvine to ensure “the success of this arrangement and advancing the lawful operations of the Construction and General Division for the benefit of its members, the broader CFMEU and the Australian community”.

Smith has previously pushed back against attempts to place the union into administration by arguing that the claims should be tested in court before drastic measures are taken.

Furlong will appear in front of parliament for updates and testimony about the status of the CFMEU, instead of Irvine, under the legislation.