The federal government says it will steamroll the Construction, Forestry, Maritime Employees Union (CFMEU) to accept an independent administrator if it ignores a court application.
The minister for workplace relations, Murray Watt, backed the legal submission by the Fair Work Commission (FWC), saying this is “the strongest action ever taken by a government against an Australian union or employer group”.
Senator Watt made the statement on Friday after an application was filed by the commission to appoint barrister Mark Irving as independent administrator to the CFMEU’s embattled general and construction divisions.
Irving has been a member of the Victorian Bar for almost three decades and has experience acting on union and employer matters.
Watt said that in the role of administrator, Irving would be able to “terminate the employment” of those in CFMEU who have “done the wrong thing”.
“There is no place for criminality or corruption in the construction industry and bullying, thuggery and intimidation is unacceptable in any workplace,” Senator Watt said.
He said if the CFMEU did not consent to the application for administration, “the government will introduce legislation to enable the establishment of an appropriate scheme of administration as swiftly and effectively as possible”.
Senator Watt said the law would not weaken conditions for workers but would ensure the union looked after its members.
“It would contain serious penalties for undermining or avoiding the scheme of administration,” he said.
Anthony Albanese said the government would begin moves to address the CFMEU.
“There’s no place for violence in workplaces or indeed anywhere in our society,” the prime minister told reporters in Brisbane.
“Our view of criminal behaviour is that the police should prosecute people when they commit a crime and violence is a crime.”
FWC in July revealed it would take action after accusations of criminal misconduct and bikie links were levelled at the union’s construction arm.
Labor’s national executive has already severed ties with the union and will no longer accept political donations or affiliation fees from the troubled construction arm.
The CFMEU has been contacted for comment on Senator Watt’s statement.
Master Builders Australia welcomed the government’s support for the court application although it was disappointed by the exclusion of the ACT and Western Australia in the application.
In a statement, the association said more needed to be done for “lasting change” including stronger protections for people who gave evidence or information to support investigations.
It also called for the federal government to establish a centralised body that would co-ordinate various inquiries.
This was echoed by the Business Council’s chief executive, Bran Black, who said the serious nature of the allegations meant an overarching inquiry was necessary.
“Without full public transparency, how can the Australian public have faith these serious issues of alleged corruption and crime won’t happen again?”
The union has been under fire after Channel Nine and its newspapers began publishing allegations of organised crime links within the construction branch in Victoria.
This included allegations that outlaw motorcycle gang members were acting as delegates and were involved in government-funded projects, including Victoria’s $100bn “big build” infrastructure plan.
Labor’s national executive has already severed ties with the CFMEU and will no longer accept political donations or affiliation fees from the troubled construction arm.
But the opposition said the government should have deregistered the union. The opposition leader, Peter Dutton, said he would introduce legislation to re-establish the Australian Building and Construction Commission (ABCC), which the Albanese government abolished.
The government has already ruled out re-establishing the ABCC, saying it wasn’t effective.
