‘Evasive and erratic’: CFMEU seeks legal advice over administration threat

The federal government is racing to prepare backup legislation that would force administration onto the CFMEU, should it not agree before the next Parliament sitting.

• Premier cracks down on CFMEU

Senator Murray Watt has given the CFMEU nine days to consent to being placed into administration, with the federal government now racing to prepare backup legislation that would force administration onto the union, should it not agree before the next Parliament sitting.

General Manager of the Fair Work Commission Murray Furlong was tasked with heading the administration process and on Friday officially filed an application to the Federal Court seeking to appoint an administrator to the CFMEU.

The application has requested the court establish an administration scheme for the Queensland, Victorian and New South Wales union branches, and has recommended Mark Irving KC be appointed as administrator.

Mr Furlong is listed as the applicant as an interested party, but does not hold the authority to be the national administrator as previously reported due to being the head of an existing independent regulator body.

CFMEU near the Cross River Rail, Roma St worksite. Photo: Steve Pohlner.

Mr Watt said if successful, the administration application would see about 270 CFMEU office staff fired, finances of all branches seized and the administrator given the power to control a majority vote in each branch.

“This represents the strongest action … ever taken by a government against an Australian union or employer group,” he said.

“(Mr Furlong) is arguing that the branches of the union named in his application are not effectively being able to operate any more.

“He obviously has to provide evidence to support that application and he has provided some of that evidence in his application.”

Mr Watt could not detail what allegations were being levelled against the Queensland CFMEU in the application, but said the application showed a concern over the branch’s “long history showing flagrant disregard for the law”.

“But also for the allegations of bullying and thuggery and intimidation that we continue to see involving this union in Queensland as recently as this week.”

The Queensland CFMEU branch declined to comment.

CFMEU National Secretary Zach Smith released a statement to members via Facebook on Friday night saying the union was now seeking legal advice after repeated failed attempts to engage the Fair Work Commission.

“I have repeatedly offered to sit down with the General Manager of the Fair Work Commission, Murray Furlong, to discuss any concerns regarding the operation of the Union,” he said.

“Unfortunately, the Commission’s response has been evasive and erratic.

“It is difficult to come to any other conclusion than that the Commission’s offer to engage constructively was disingenuous.”

Master Builders Australia is calling on the federal government to implement a policing body that can crack down on criminal and corrupt activity during the administration process, similar to the former Australian Building and Construction Commission.

In a statement, Master Builders applauded the government for beginning the legal administration process over the CFMEU but said existing regulators and law enforcement could not operate in silos and would require “collective resources and the removal of legislative barriers”.

The construction head has requested a dedicated industry regulator be made permanent, allowing cross-jurisdiction efforts.

Mr Watt said he met with Master Builders last week and that their request could be considered, but his immediate priority was drafting the legislation in time for parliament.

The non-union member who was assaulted outside his home was in the CFMEU picket line brawl. Pic: 9 News

Mr Watt has said if full consent was not given by the CFMEU’s national construction and general division and each branch involved in the application, he would table legislation that forced the administration to Parliament on Monday, August 12.

“If the union decides to not consent to this application, then we will be ready with legislation to enable administration to proceed without any barriers being imposed and without the years of litigation that it would entail,” he said.

“It’s a little too early to go into a lot of detail about the legislation but … it’s pretty well advanced.”

The Federal Court will, in determining Mr Furlong’s application, hold full authority to dictate how the administration is conducted, who conducts it and under what terms, including what powers and responsibilities would be given to the administrator.

CFMEU at the Roma St Cross River Rail site. Photo: Steve Pohlner

If successful, the Fair Work Commission will only hold authority to implement any recommendations relating to its existing powers, with all criminal conduct to be referred to individual state and territory police services or if necessary, the Crime and Corruption Commission.

Speaking in Brisbane earlier today Prime Minister Anthony Albanese said police have the appropriate powers to prosecute any violent union members.

“Our view of criminal behaviour is that the police should prosecute people when they commit a crime and violence is a crime,” he said.

“We have a range of authorities in this country, including state and federal police to investigate when criminal activity occurs.”

The Queensland Government is readying legislation to incorporate parts of the Queensland CFMEU branch with members only recognised at a state level into the federal administration framework.

Industrial Relations Minister Grace Grace said currently, the administration application only applied to federally registered CFMEU unions, and she was working on legislation that would close the legal gap and ensure both state and federal registered parts of the Queensland CFMEU would be treated equally under the administration.

“There is one part of the CFMEU that’s registered in this state, now what we need to do is ensure that the action taken by the federal level actually applies to the state branch” she said.

“And that is what the legislation is all about, ensuring that when we see the legislation that we can ensure that the General Manager has equal powers to impose it on the state registered body.

“Until we see exactly how that’s going to be enacted federally, we will then make changes, urgent changes, to our state industrial relations system.”