Law forcing CFMEU into administration faces delay after Coalition calls for inquiry

Federal legislation forcing the CFMEU into administration is facing delay as Coalition workplace spokeswoman Michaelia Cash says she will be advocating for an inquiry.

A series of revelations about the CFMEU’s ties to organised crime have prompted a federal move to stamp out corruption. The union faced three federal courts in three states on a single day last month over separate allegations of intimidation, bullying, abuse and death threats.

Opposition workplace spokeswoman Michaelia Cash and Workplace Minister Murray Watt.Credit: Alex Ellinghausen

However, the Construction, Forestry and Maritime Employees Union has stopped the government from naming an administrator and has challenged the move in court, prompting Workplace Minister Murray Watt to introduce a bill on Monday to force the union into administration.

The push for legislation was prompted by the Building Bad investigation by this masthead, The Australian Financial Review and 60 Minutes. It revealed the CFMEU had been infiltrated by bikies and organised crime, and triggered the resignation of former CFMEU Victoria division leader John Setka.

Under the proposed law, Watt would be able to decide if it is in the public interest to appoint an administrator to take charge of all branches of the CFMEU.

The legislation includes obligations for officers, employees and professional advisers at the union to co-operate with any administrator, who could be appointed for up to three years. Members who don’t comply could be expelled from the union for up to five years and face a maximum of two years in jail.

Cash said on Monday she had significant concerns about the legislation, arguing it was only a temporary fix and needed to go to a committee before being passed.

“There is a drop-dead end date of three years, worse than that, individuals can only be banned for up to five years. These people are very good at waiting government out,” she said on Sky News.

“It’s up to Murray Watt when the administration ends, he can end it before the three years, it’s up to Murray Watt which parts of the union stay in administration and don’t, it’s up to Murray Watt what actually goes into the dean of administration, there is no transparency here.”

Cash last week said the CFMEU should be deregistered.

‘For the Coalition to demand strong action and then seek to delay … [they] dithered when in power and now they are trying to delay again.’

Workplace Relations Minister Murray Watt

The Coalition’s push for an inquiry was slammed by Watt, who accused Cash of knowing about the criminality in the CFMEU when she was in government and doing nothing.

“For the Coalition to demand strong action on this issue and then seek to delay the passage of this legislation for months shows they’re not serious about fixing the criminality, bullying and thuggery within this union,” he said.

“The Coalition dithered when in power and now they are trying to delay again.”

The legislation was tabled in the Senate but will need support from the Coalition or the crossbench to pass, a prospect that seemed unlikely on Monday.

Greens leader Adam Bandt.Credit: Alex Ellinghausen

Earlier, Greens leader Adam Bandt had ducked questions about donations the Greens have received from the CFMEU, while indicating the party would not back the legislation.

Bandt would not be drawn on his support of Labor’s plan to enforce administration in an interview with ABC Radio National.

“We note that there are several court proceedings on foot and our usual approach is to say, well, those court proceedings should play themselves out,” he said.

Labor’s federal executive has banned donations from the Victorian branch of the CFMEU but Bandt did not say if the Greens would do the same noting his party had not received a donation from the union since 2013.

“Donations are a matter for the party … it’s about a decade ago that one branch received donations, over a decade ago, so this isn’t about donations from us,” he said.

“I know others may have received donations, but for us, this is about a matter of principle about what laws should apply across workplaces to ensure that everyone has a safe workplace.”

A collection of independent MPs sent a joint letter last week to Prime Minister Anthony Albanese, arguing the government’s legislation was not strong enough.

“To truly address the issues, we are seeking the establishment of a new oversight body and legislative framework to provide the transparency, accountability and cultural change needed to address the issues within the sector,” the letter stated.

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