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Government reaches agreement to pass CFMEU administration legislation

The Construction, Forestry, Maritime, Mining and Energy Union (CFMEU) is facing a significant shake-up as the federal government has struck a deal with the Coalition to pass laws that will put the troubled construction union under administration. This move comes after allegations of outlaw motorcycle gangs infiltrating the union’s branches, with reports of bikies being appointed as delegates on major projects, along with claims of bullying, intimidation, and corrupt conduct.

The bill, which has passed the Senate with Coalition amendments, will now be sent to the lower house where it is expected to become law. Shadow Industrial Relations Minister Michaelia Cash confirmed that the Coalition was prepared to support the bill after the government agreed to three-year minimum periods of administration and permanent bans of officials where necessary. Additionally, the CFMEU will be banned from making any political donations or incurring any election campaign expenditure while under administration.

Senator Cash stated that the Coalition had received a letter from the administrator to Workplace Relations Minister Murray Watt, outlining that one of the primary goals would be to block spending. Senator Watt emphasized the urgency of the situation, stating that they were well advanced in drafting a scheme of administration and hoped to finalize it in the next few days.

The legislation enables a scheme of administration to be set over the construction division of the CFMEU, allowing the Fair Work Commission to appoint an administrator. CFMEU national secretary Zach Smith expressed concerns about the government’s actions, stating that they undermined the union’s democratic rights and principles of procedural fairness. He emphasized that the allegations against the union were untested in the legal system and that a forced administration would not address real issues of criminality and corruption.

The government’s decision to introduce legislation came after delays in the courts and indications that the union intended to fight the application to place it into administration. The legislation was delayed last week after the Greens and Coalition defeated attempts to force a vote on the issue, with the Coalition seeking a guarantee that the union would be banned from making political donations.

The government is confident that it can pass the CFMEU and National Disability Insurance Scheme (NDIS) laws when parliament resumes, but progress elsewhere is slower. The Coalition alleges that the CFMEU has donated over $6.2 million to the Labor Party since taking office in May 2022. Greens leader Adam Bandt criticized the legislation as an unprecedented attack on the rule of law, stating that civil liberties groups have raised concerns about its impact on freedom of association and the rights of unions and membership-based organizations.

In conclusion, the CFMEU’s impending administration marks a significant development in the ongoing saga surrounding the union’s alleged misconduct. The government’s actions have sparked debate and controversy, with various parties expressing differing views on the matter. As the legislation moves through the parliamentary process, the future of the CFMEU and its members remains uncertain.

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