Workplace Minister Murray Watt prepares law to force CFMEU into administration

Workplace Relations Minister Murray Watt is set to force the CFMEU into administration using unprecedented new laws to put an end to the “thuggery, bullying and intimidation”.

Senator Murray Watt has launched a legislative grenade, promising to force the controversial CFMEU into administration -a move branded by the union as a full-frontal attack.

If passed, the unprecedented Bill will give Workplace Relations Minister Senator Murray Watt special powers to impose the administration based on public interest.

“We’ve drafted this in a way to withstand legal challenge, and that’s why there are a couple of steps in the legislation to ensure that it can hold up in court because I think you can bet your bottom dollar that the CFMEU will try and challenge it,” Mr Watt said.

The CFMEU was given nine days to consent to the administration terms set out by Fair Work Commission general manager Murray Furlong in his application to the Federal Court last Friday.

Federal Minister for Workplace Relations Murray Watt said he believed the CFMEU would challenge the move. Picture: David Clark

The application seeks to appoint Mark Irving KC as administrator, with 269 CFMEU offices to be vacated, assets and finances seized and majority voting rights of each branch transferred to the administrator.

“The deadline for that response was 5pm yesterday,” Mr Watt said.

“I received a response from Mr (Zach) Smith at 5:09pm in which he said that consenting to the application only remains a possibility.

“It is clear that the CFMEU will not consent to that application anytime soon.”

CFMEU State Secretary Zach Smith said the union had blindsided after being in progressive talks with the Fair Work Commission regarding the application as it didn’t want to “walk in blind” to the administration.

“Put simply, the government has undermined the legal process and stripped us of our rights to a fair process,” he said.

“It has also not given us the opportunity to address the issues in our union.

“They have done this despite the fact we have done everything possible in a very short space of time, announcing a comprehensive suite of measures in a matter of weeks.

The government’s proposed legislation is a full-frontal attack on our union and they are playing politics with the serious issues of criminal conduct in our industry.”

Only one case management hearing was held between Fair Work and CFMEU legal counsel regarding the terms of administration, with Justice Michael Wheelahan forced to recuse himself due to having previously acted against the union.

But Mr Watt says the militant group has had “ample” time to consent to the terms.

“I recognise the efforts that Zach Smith the National Secretary of the union has made but they aren’t enough,” he said.

While the administration was proposed by the federal government in response to corruption allegations involving the Victorian and New South Wales branches, specific allegations are not known to have been levelled against the Queensland branch by Fair Work.

“There have been stories going around for some time,” Mr Watt said.

“Aside that, you’ve only got to open your eyes and see, watch the media in Queensland to see that there have been strong allegations of thuggery, bullying and intimidation here in Queensland, that has got to stop.”

Draft legislation granting Mr Watt power to set down the scheme of administration is still being finalised but will be introduced as early as possible, with the Senator relying on co-operation from both the Coalition and the Greens.

“The time frame for passage will be in the hands of the Coalition and the Greens,” he said.

“This will really be a test for those parties.”

CFMEU members at a Brisbane Labour Day March. Picture: Liam Kidston

The legislation will be solely focused on the CFMEU and would also give power to Mr Furlong to appoint an administrator.

The Queensland government has promised to mirror the federal legislation allowing the federal government’s bill to have effect on the CFMEU state members.

It was business as usual at Cross River Rail sites in Brisbane on Friday after nearly 200 subcontractors were ordered back to work.

Employer UGL Rail Services, sister company to CPB Contractors, successfully won a bid to exclude its workforce from the ongoing industrial strike action initiated by CFMEU, allowing tradies to cross the picket line for the first time in weeks.

While there was no reported confrontations at entrance points, union members were camped along Roma St under marquee’s decorated with flags and signs which read “Say no to corporate greed” and “Heat stress kills”.

Strike action at Cross River Rail is expected to continue through this week, disrupting transport options to and from the Ekka.

Originally published as Workplace Minister Murray Watt prepares law to force CFMEU into administration