Federal government to legislate to ensure administrator for CFMEU
The CFMEU has reacted angrily to the Albanese government’s announcement administrators would be appointed following corruption allegations into the union.
At Work
Don't miss out on the headlines from At Work. Followed categories will be added to My News.
The Albanese government will ensure administrators can be appointed to overhaul the construction division of the CFMEU for behaviour it has described as “abhorrent” and “intolerable”, as the union is suspended from its peak body.
The action has led to a furious response from a senior union official, who has called Prime Minister Anthony Albanese ‘gutless’ and ‘spineless’.
“The Albanese Labor government has opened the gates of hell for tens of thousands of workers as he scrambles to shield the big end of town and his Labor mates from scrutiny,” the statement from the Queensland/NT branch said.
The branch’s secretary Michael Ravbar said the state and federal governments and major civil contractors should face the same level of scrutiny as the unions.
“Albanese has panicked and soiled himself over some unproven allegations in the media,’ Mr Ravbar said.
“Workers can see that Albo has lost control and the country is being run by buffoon breakfast show hosts and talkback radio shock jocks.”
Mr Ravbar “it’s the major civil companies that have brought the unsavoury elements on government-funded projects.”
“Albanese knows that a thorough investigation will put Labor governments in a world of pain,” Mr Ravbar said.
“Albanese is selective about his interest in criminal associations and willingly ignorant about our industry.
“Albanese has panicked and soiled himself over some unproven allegations in the media.”
A defiant Mr Ravbar said the CFMEU had repeatedly said it would cooperate with any criminal investigation, and hit out and “gutless Labor politicians” focused on affiliation fees and donations.
“The CFMEU is heare to stay, This union is owned by the members, not media moguls or spineless politicians,” he said.
“We will defend each other to the ends of the earth.”
Mr Ravbar’s followed the announcement earlier on Wednesday by Workplace Relations Minister Tony Burke.
Mr Burke said the general manager of the Fair Work Commission would investigate after a series of allegations into the construction union were made public.
“The government will ensure the regulator has all the powers it needs to appoint administrators,” Mr Burke said.
“There can be no place for criminality or corruption in any part of the construction industry.”
Mr Burke said the government was prepared to legislate when parliament resumed in August if necessary to make that happen, but ruled out deregistering the union.
“The number one job of any union and its officials is to look after its members,” he said.
“The reported behaviour from the construction division of the CFMEU is the complete opposite of this.
“It is abhorrent and it is intolerable.”
Mr Albanese said his government had acted “swiftly” and decisively to ensure administrators for the construction arms of the Victorian, NSW and Queensland CFMEU branches.
“That’s appropriate. We’re not waiting. We’ve been decisive,” Mr Albanese told reporters in Brisbane.
“We’ve worked through with the Fair Work Commission, as we said we would do and with legal advice as we said we would do and today we’ve announced the action that is appropriate that will stamp out this corruption once and for all.”
Peak union body the ACTU dealt the under siege union another blow later on Wednesday, suspending its construction and general division after CFMEU leaders met with the executive.
ACTU secretary Sally McManus said the suspension would remain in place “until they are in a position to demonstrate to us that they are a well functioning, clean union, free of any criminal elements.”
“We absolutely reiterate our zero tolerance for corruption, criminal activities, all violence, all of it,” Ms McManus said.
”We will stand against it. We’ll root it out. We will continue to do what is necessary to rid our movement of any elements like that.”
The actions of the government and union movement follow days of allegations of corruption, bribery and bullying in the construction arm of the union.
The joint investigation by the Sydney Morning Herald, The Age and 60 Minutes led to the resignation on Friday of CFMEU Victorian boss John Setka, who has denied the allegations.
But the government’s response has been slammed by Opposition Leader Peter Dutton as “weak’, calling for the CFMEU to be deregistered not just be put into administration.
“Bob Hawke had the guts to stand up against the corrupt BLF and we know that Anthony Albanese has not got any ability to show the leadership that Bob Hawke did,” Mr Dutton told reporters in Brisbane.
“I think this is an issue that’s going to go on. It’s going to bedevil the government for as long as the Prime Minister continues to be weak.”
He said the Albanese government’s response had been wanting and dismissed the excuse that the allegations were new as reason for not acting against the CFMEU earlier.
“There’s no new information available to the Prime Minister that wasn’t available when he decided to abolish the ABCC,” Mr Dutton said.
“Why did he abolish the (building) watchdog? Because the CFMEU wanted him to abolish and they had donated $10m to the Labor Party.
“The Prime Minister is only acting now not because he’s got new information but because his mates have been caught on tape and the corrupt practices we’re seeing today have been well known.
“They’ve been publicly reported on and if the Prime Minister says he knew nothing about it, he’s not telling the truth.”
But Mr Burke dismissed deregistering the CFMEU, saying it was no longer the “toughest action” a government could take against a union.
The Fair Work Act also allows deregistered entities to act as a “red union,” which allows them to bargain on behalf of workers, which would negate some of the reason for registration.
“That capacity was not around when the Builders Labourers Federation was deregistered (by former Labor prime minister Bob Hawke),” Mr Burke said.
“If we simply went down the deregistration path, we would have an organisation still capable of bargaining and doing the entire business model we’ve been seeing reported over recent days with no layer of regulation or additional oversight that applies to registered organisations.”
Mr Burke said had been unaware of the latest allegations before they were made public.
“The organised crime issue – it was published as an exclusive, that’s because this was new information.”
Mr Albanese also dismissed suggestions he had been slow to react, repeating he had sacked Mr Setka from the Labor Party within weeks of becoming leader.
He said his government was committed to ending corruption within the building industry.
“What we want is corruption to stop and inappropriate activity to stop,” Mr Albanese
“To have a corrupt union official, you need a corrupt boss as well. You need someone paying the money and we want that to stop and to be weeded out whether it be in unions or business, wherever it is.
“It needs to be stamped out.”
Premiers take action against state branches
Earlier on Wednesday, NSW Premier Chris Minns called for the immediate suspension of the NSW division of the CFMEU, following allegations of bribery against its state secretary Darren Greenfield.
The Nine media investigation revealed what is purportedly new evidence in the case against the NSW boss who police allege pocketed $5000 by the owner of a building company seeking support from the union.
The footage was captured in relation to a corruption investigation by the NSW Police and Australian Federal Police, which saw Mr Greenfield charged with four counts of receiving a corrupting benefit, contrary to the Fair Work Act in September 2021.
Mr Greenfield has denied any wrongdoing and the matter remains before the courts.
His son and NSW CFMEU’s assistant secretary, Michael Greenfield, was also hit with corruption charges.
On Wednesday morning, Mr Minns and NSW Treasurer Daniel Mookhey released a joint statement stating they had written to the NSW Labor general secretary Dominic Ofner and requested the immediate suspension of the CFMEU Construction and General Division from the Labor Party and the stoppage of donations and affiliation fees.
They said the state government was also working with the Commonwealth government on a “co-ordinated approach,” including a review of NSW Enterprise Bargaining Agreements.
“There is absolutely no tolerance for criminal or corrupt behaviour in the building industry, in unions or anywhere for that matter,” Mr Minns said.
“It is clear the CFMEU Construction and General Division will not and cannot clean itself up.”
In 2021 Mr Minns expelled Mr Greenfield from the NSW Labor Party, however the union was allowed to remain.
Queensland Premier Steven Miles welcomed the administration process being extended to his state.
“That will allow the concerns and complaints and grievances that have been aired here in Queensland to be properly considered and, if appropriate, action can be taken by that
administrator,” he said.
“The Industrial Relations Minister is seeking urgent legal advice, including whether any action needs to be taken by the state government to ensure the administrator has the powers that they need.”
On Tuesday, Victorian Premier Jacinta Allan requested the suspension of the union’s construction division from the state Labor branch, and stopped donations from the CFMEU.
She also flagged her government was preparing to toughen “anti-bikie laws” which could make it easier for police and the courts to “prevent certain individuals from associating with each other”.
The Bill would be introduced next month and be a priority for the parliament, Ms Allan said.
Originally published as Federal government to legislate to ensure administrator for CFMEU
Join the conversation
‘Zero’: 36yo ‘defeated’ after not selling a thing
A business owner has taken to social media to share why she feels “defeated” after making zero.
Read more
Aussies’ $103bn pay packet for one month
Australians were paid a historic amount overall for the month of September, as wages growth and the number of hours people were working increased.
Read more