The Albanese government will next week push for new powers to appoint an administrator of the construction union, due to a delay in the Fair Work case brought after accusations of criminal misconduct and bikie links.
In a further toughening of Labor’s stance, the workplace relations minister, Murray Watt, signalled that the government was considering calls for a joint federal and state police taskforce to investigate alleged criminal conduct in unions.
But in a bid to quell “concern in union quarters” of a wider crackdown, Watt told Guardian Australia that proposed ministerial powers to appoint an administrator would be limited to the construction division of the Construction, Forestry, Mining and Energy Union.
In July Tony Burke, as industrial relations minister, called the Australian federal police to investigate corruption allegations against the CFMEU after reports suggesting the union’s construction arm had been infiltrated by bikies and criminals.
On Friday the Fair Work Commission asked the federal court to appoint barrister Mark Irving as independent administrator, a move that would allow him to sack individuals Watt said had “done the wrong thing”.
Watt had given the construction division a deadline of Friday to agree to the appointment. But Labor would probably need to introduce legislation “as early as possible” next week, he said, because of Justice Michael Wheelahan’s decision to recuse himself as he had previously acted as counsel against the union.
After the recusal there was “no sign it will be resolved this week, which would mean … we won’t have a resolution and will introduce legislation”, Watt told Guardian Australia.
Watt also cited “all early signs” the CFMEU would not consent, including comments from its Queensland secretary, Michael Ravbar, accusing Labor of an “anti-CFMEU crusade” that would hurt workers’ pay and conditions.
On Wednesday the national secretary of the construction division, Zach Smith, updated members that the union was “considering advice from our legal team” and has sought further information from the Fair Work Commission to decide on a response “in the best interests of CFMEU members”. He added: “Your union, the CFMEU, is here to stay.”
Watt said the key motivation was “to clean up this union to protect the best interests of its members”, arguing it had “comprehensively lost its way, and lost its focus on its members”.
“There is no place for violence and thuggery in any worksite. Unfortunately it seems that is becoming far too frequent on construction worksites.”
Watt cited alleged “threats of violence” including against other union officials.
He met with employer groups on Wednesday including the Australian Industry Group, Australian Chamber of Commerce and Industry, and the Business Council, after earlier consultation with the Australian Council of Trade Unions.
While some employer groups have called for a royal commission and possible deregistration, Watt said the Master Builders and contractors association “want action”, not further inquiries, and supported the government’s decision to push for an administrator.
Watt ruled out deregistration or bringing back the Australian Building and Construction Commission, but noted that Labor had not “ruled anything else out” and could consider a “range of other” actions after an administrator was appointed.
“We’ve had countless inquiries that have not got to the bottom of this, and not charged the people involved.
“People are asking: what more needs to be done around policing and criminal law enforcement? That’s one of the things we’re giving further thought to.”
Watt noted calls for a special federal-state police taskforce, which the government is open to considering.
Smith has responded to “serious” allegations by placing the Victorian branch under the administration of the national office. The Victorian secretary John Setka had stepped down earlier in July.
“We will establish an independent process to investigate any credible allegations of wrongdoing,” Smith wrote to members on 15 July.
“We have zero tolerance for criminality. Anyone found to have engaged in criminal conduct while representing the CFMEU will be identified and removed.”
Smith said some reports had engaged in “completely unwarranted” smears on officials “based on their histories or personal relationships”.
Andrew McKellar, the chief executive of the Australian Chamber of Commerce and Industry, said an administrator needed to be appointed “as a priority”.
He argued this should be done on a “comprehensive” basis, not excluding the Australian Capital Territory and Western Australian branches, as the Fair Work application proposes.
“That’s just a first step, a minimum step. It’s not sufficient to address all of the concerns or ultimately to restore public confidence that the fundamental issues that go to heart of CFMEU business model are being addressed.”
McKellar called for a review of procurement rules at all levels of government, and of funding from federal government infrastructure projects.
On Wednesday Smith claimed the Master Builders and “other bosses’ groups” have used the controversy to attack wages and conditions and there was “no evidence base” for claims the union had caused “cost blowouts and time delays”.
