CFMEU Construction Division Placed Under Administration: 270 Officials Ousted, Union Faces 5-Year Overhaul | World Briefings
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CFMEU Construction Division Placed Under Administration: 270 Officials Ousted, Union Faces 5-Year Overhaul

23 August, 2024 - 4:15AM
CFMEU Construction Division Placed Under Administration: 270 Officials Ousted, Union Faces 5-Year Overhaul
Credit: cfmeu.org

The Albanese government put the entire CFMEU construction division into administration on Friday, in a snap move that ousted hundreds of branch officials across the country, effective immediately. Attorney-General Mark Dreyfus said in a statement it was in the public interest to place the CFMEU’s construction arm and all of its branches – including in Western Australia and the ACT – into administration.

The Construction, Forestry and Maritime Employees Union (CFMEU) has been placed under administration for up to five years following allegations of criminal behaviour and bikie gang links, resulting in the dismissal of over 270 officials.

Attorney-General Mark Dreyfus said on Friday he deemed it in the “public interest” to place the union into administration, including its WA and ACT branches. It’s been reported that more than 270 paid union officials have been dismissed and the roles of elected members vacated. Legislation passed on Monday means a minimum three years of administration for the CFMEU, which will make no donations to the ALP during this period.

Prime Minister Anthony Albanese said on Friday that he wanted to stamp out corruption in the building industry. “We know that trade unionists do a great job when they look after the wages and conditions of their members, but there’s no place for corruption and intimidation in the building industry,” he said. “To have a corrupt union, you need a corrupt employer to be paying them money, and there’s no place for it.”

The Albanese Government began work in July to place the union under administration nationally following media reports into the CFMEU, after which its South Australian and Victorian branches entered voluntary administration. Victorian union secretary John Setka resigned just before the reports.

Former Workplace Relations Minister Tony Burke then said the “number one job of any union is to look after its members”. “The reported behaviour for the construction division of the CFMEU is the exact opposite of that obligation,” Burke said last month. “It’s abhorrent, it’s intolerable. There can be no place for criminality or corruption in any part of the construction industry.”

Laws giving the relevant minister powers to intervene and slap life bans on officials passed the parliament earlier this week after a deal was struck with the coalition. Melbourne silk Mark Irving KC has been given the job of administering the CFMEU.

“I have determined a written scheme of administration and the General Manager of the Fair Work Commission has appointed Mr Mark Irving KC as the administrator and contacted Mr Irving to notify him of his appointment,” Dreyfus said in a statement. The union has slammed the law as taking away the rights of members to a fair process and signalled an impending court challenge. CFMEU national secretary Zach Smith has said the criminal allegations remain untested. The administration period can last up to five years under the law and officials found guilty of crimes would be banned for life and unable to become bargaining agents at other registered organisations without holding a fit-and-proper-person certificate.

Impact on the CFMEU

The move has sent shockwaves through the construction industry, with many workers and employers unsure of what the future holds. The CFMEU has been a powerful force in the construction industry for decades, and its absence will be felt by many.

The CFMEU has been accused of engaging in a range of corrupt practices, including:

  • Extortion: The union has been accused of extorting money from construction companies in exchange for allowing them to operate.

  • Violence: Union officials have been accused of using violence to intimidate workers and employers.

  • Intimidation: The union has been accused of intimidating workers who do not join the union or who refuse to follow union rules.

  • Criminal Infiltration: The union has been accused of being infiltrated by criminal gangs.

The allegations against the CFMEU have been the subject of numerous inquiries, investigations, and legal proceedings.

Administration Period: A New Era For the CFMEU

The administration of the CFMEU is a major development in the history of the union. It is the first time that a major trade union in Australia has been placed under administration. The administration is expected to have a significant impact on the CFMEU and the construction industry.

The administrator will have the power to:

  • Investigate the union’s finances

  • Overhaul the union’s governance

  • Remove corrupt officials

  • Reform the union’s operations

The administrator is expected to be independent and to act in the best interests of the CFMEU and its members. The administration is likely to be a long and complex process.

Government’s Stance: Cleaning Up the Building Industry

The Albanese Government has stated its commitment to cleaning up the building industry. The government has argued that the CFMEU’s corrupt practices have damaged the reputation of the construction industry and have cost taxpayers millions of dollars. The government has also argued that the CFMEU’s corrupt practices have made it difficult for legitimate businesses to operate in the construction industry.

The government’s decision to place the CFMEU under administration has been welcomed by some business groups and industry representatives. They have argued that the administration is a necessary step to restore integrity to the construction industry. However, the decision has been criticized by some unions and labor groups, who have argued that the government is overstepping its bounds and that the administration is a politically motivated attack on the CFMEU.

The administration of the CFMEU is a significant event that will have a major impact on the construction industry. It remains to be seen how the administration will play out, but it is clear that the government is serious about cleaning up the building industry.

What's Next for the CFMEU?

The CFMEU’s future remains uncertain. The union will face significant challenges as it attempts to rebuild its reputation and its membership. The union will also face significant financial challenges as it pays for the costs of the administration.

The administration of the CFMEU is a major development in the history of the union. The administration is likely to have a significant impact on the CFMEU and the construction industry. It will be interesting to see how the administration plays out and what the long-term consequences are for the union.

The Role of the Administrator

Mark Irving KC has been appointed as the administrator of the CFMEU. Irving is a barrister with a strong reputation in the field of industrial law. He is expected to bring a wealth of experience and expertise to the role.

Irving’s appointment is a significant one. He will have the power to make decisions about the future of the CFMEU. His decisions will be closely watched by the government, the union, and the construction industry.

What is the Administrator's Job?

The administrator’s job is to investigate the CFMEU’s finances and operations. They will also be responsible for overseeing the union’s governance and ensuring that it is operating in a lawful and ethical manner.

The administrator will have the power to remove corrupt officials and to implement reforms to the union’s operations. The administrator will also be responsible for reporting to the government on the progress of the administration.

Challenging the Administration: Union Response

The CFMEU has criticized the government’s decision to place the union under administration. The union has argued that the government is overstepping its bounds and that the administration is a politically motivated attack on the union. The union has also stated that the criminal allegations remain untested. The union has announced its intention to challenge the administration in court.

The Future of Union Power

The administration of the CFMEU is a significant event that will have a major impact on the construction industry and the future of union power in Australia. The administration is likely to lead to a more regulated and transparent construction industry. It will also likely lead to a decline in the power of the CFMEU.

The CFMEU has been a powerful force in the construction industry for decades. The union has played a key role in negotiating wages and conditions for construction workers. The union has also been a vocal advocate for workers’ rights. The administration of the CFMEU is likely to weaken the union’s power and influence. This could lead to a more balanced power dynamic in the construction industry, with employers having more leverage.

A New Era for the Construction Industry?

The administration of the CFMEU marks a new era for the construction industry in Australia. The industry is facing a number of challenges, including a shortage of skilled labor, rising costs, and climate change. The administration of the CFMEU could help to address some of these challenges. The administrator will be able to implement reforms that will improve the efficiency and effectiveness of the construction industry.

However, the administration is also likely to lead to increased regulation of the construction industry. This could make it more difficult for businesses to operate and could lead to higher costs for consumers. The administration of the CFMEU is a complex and challenging situation. It will be interesting to see how the administration plays out and what the long-term consequences are for the construction industry in Australia.

CFMEU Construction Division Placed Under Administration: 270 Officials Ousted, Union Faces 5-Year Overhaul
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CFMEU CFMEU Construction Union Administration Corruption Bikie Gangs
Maria Garcia
Maria Garcia

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Passionate editor with a focus on business news.