Lawyers for the ACT branch of the Construction, Forestry and Maritime Employees Union are poring over new laws giving the Fair Work Commission General Manager the power to place it into administration.
Workplace Relations Minister Murray Watt, who is drafting the scheme of administration to appoint an administrator - expected to be barrister Mark Irving KC - to all branches of the union's construction division, said on Tuesday that he was anticipating legal challenges.
"It wouldn't surprise me in the least if we see the CFMEU running off to court, as they often seem to do," Senator Watt told reporters.
The ACT branch has declined to comment on the legislation, which passed both houses this week.
Acting Secretary Michael Hiscox has previously said the branch had not been accused of the kind of wrongdoing alleged in other branches and that there was no reason to place it into administration.
"There are no allegations against the ACT branch," he said last month.
It is understood that the union's officeholders are awaiting legal advice to understand the full ramifications of the bill, which was amended through a deal with the Coalition.
RMIT University industrial relations law expert Professor Anthony Forsyth said any legal challenge was likely to focus on the question of whether a scheme of administration was "in the public interest", as required by the bill.
He said the union might also seek to challenge the validity of the scheme of administration, which is a legislative instrument, on the basis that the Minister had "incorrectly or impermissibly or unfairly exercised that power."
However, Professor Forsyth noted the bill was drafted in a way to make the instrument non-disallowable, meaning it cannot be scrutinised or overturned by the Senate.
On Monday, Senator Watt said he was being meticulous in his drafting of the scheme of administration, which was nearly complete.
"We do want to make sure that we follow every step in a way that prevents legal challenges," he told reporters.
