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‘Urgent action’ afoot against alleged CFMEU crime links

Placing the CFMEU into administration is in the public interest, the attorney-general says.

Placing the CFMEU into administration is in the public interest, the attorney-general says. Photo: AAP

Urgency is required in cleaning up the embattled construction union after allegations of bikie links, the government says as it readies a legal trump card.

Workplace Relations Minister Murray Watt will introduce new laws giving the minister the power to decide whether it’s in the public interest to appoint an administrator to the union’s construction and general division.

An administrator would be appointed for three years and allow the minister to determine an administration scheme if it’s in the public interest.

Watt said he wasn’t satisfied the CFMEU would support a court application by the Fair Work Commission to appoint an external administrator.

The union’s national secretary Zach Smith told him consent “only remains a possibility”, he said.

“It’s clear that the CFMEU will not consent to that application any time soon,” Watt told reporters in Brisbane on Friday.

“We cannot stand by and allow a once proud union to be infiltrated by bikies and organised crime.

“The construction division of the CFMEU has clearly failed to operate effectively or in the best interest of its members – urgent action is required and it’s required now.”

The CFMEU has been contacted for comment.

The law includes obligations for officers, employees and professional advisers to co-operate with any administrator, including providing all required information and documents.

Significant penalties will be established for those who do not comply, or try to frustrate or undermine the administration process.

It only applies to the CFMEU’s construction and general division and no other unions.

Whistleblower protections will safeguard people coming forward with reports of wrongdoing.

The minister urged the Greens and coalition to support the legislation when parliament resumes on Monday.

The opposition is pushing for a parliamentary committee to examine the CFMEU’s involvement on construction sites and associated cost blowouts, and companies being locked out of building sites.

The committee referral, which needs Senate support with those numbers yet to fall in place, would examine the adequacy of regulation to stamp out corruption, bullying and intimidation in the industry.

Watt branded the opposition’s motion for an inquiry a “political stunt”.

Labor’s national executive and multiple state branches have suspended ties and donations from the construction union, and the prime minister and senior ministers have called for it to accept external administrators.

A defiant Smith used a video message to union members posted on social media on Wednesday to exclaim, “the CFMEU is here to stay”.

– AAP

Topics: CFMEU
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