Editor’s view: More needs to be done to curb rogue union

The militant CFMEU has finally been plunged into administration – but that doesn’t mean the federal government’s work is over. In fact, it could be only the start, writes the editor.

The militant CFMEU has finally been plunged into administration – but that doesn’t mean the federal government’s work is over.

In fact, it could be only the start, with administrator Mark Irving KC vowing to uncover and root out any corruption within the union after the majority of its leaders lost their jobs yesterday.

Now the real work starts, and the government will be forced to respond if there is any indication of wrongdoing.

Employment and Workplace Relations Minister Murray Watt has already ruled out a royal commission.

He says the construction sector has already been “inquired to death” and it is now time for action, not more inquiries.

We take his point on that.

But what he can do is reinstate a version of the Australian Building Construction Commission (ABCC).

Mr Watt has so far ruled that out as well – but the calls may reach fever pitch if Mr Irving starts unearthing anything particularly scandalous.

The ABCC was established in 2016 by the then-Coalition government to tackle alleged union intimidation and lawlessness in the building industry.

The Albanese government subsequently killed off the ABCC, claiming the organisation had been set up to “discredit and dismantle unions and undermine the pay, conditions and job security of workers”.

CFMEU signage near the Star Casino in George Street, Brisbane. Picture David Clark

What the ABCC did do, according to former commissioner Stephen McBurney, was successfully litigate 101 out of 110 cases since 2016.

That involved 2520 breaches of industrial laws, and almost $18m in fines, he said.

Of that, Mr McBurney claimed the CFMEU made up $15.8m.

And last month, the Fair Work ombudsman revealed it had secured penalties of more than $3.5m with “the large majority” against the CFMEU since it picked up the ABCC’s cases.

There’s no doubt the main beneficiary of the abolishment of the ABCC was the CFMEU.

It certainly has not benefited the wider community.

Just last week, a senate hearing into the cost-of-living crisis heard more warnings from the building industry that the CFMEU has inflated construction costs.

Master Builders Australia representative Shaun Schmitke said the union had degraded competition and driven up the cost of construction – and they would not be cowed by being placed into administration.

“They are becoming worse and it’s worsening by the day,” he said.

“They are not backing off.”

Of course, in Queensland this revelation doesn’t come as a surprise – the industry here has issued stark warnings about the consequences of the state government’s pro-union best practice industry conditions (BPIC), dubbed the “CFMEU tax”.

The re-establishment of the ABCC – or something like it – must be put firmly back on the table. And it must be given real powers.

The government must think about the broader community, not just the political consequences of putting the unions off-side.

Putting the union into administration is a bold move, but it potentially won’t be enough and the government needs to consider its next steps.