Fair Work Commission seeks the power to remove union officials if necessary during CFMEU cleanout

Administrators of the scandal-plagued CFMEU would have the power to sack officials and control finances under a scheme put to the Federal Court.

Administrators of the scandal-plagued CFMEU would have the power to sack officials and take control of credit cards and finances under a scheme to clean out the union.

Fair Work Commission general manager Murray Furlong began Federal Court action on Friday to appoint senior barrister Mark Irving KC as the independent administrator of the CFMEU construction division in states and territories other than the ACT and Western Australia.

Under the scheme proposed, which the Fair Work Commission said would be for “as long as necessary to bring the branches of the division into lawful compliance”, Mr Irving would be given sweeping powers.

These include the power to “remove officers, officials and employees from their positions”.

A union officials would be sacked under sweeping reforms proposed to clean up the CFMEU by Fair Work Australia.

It is also proposed that assistant administrators would “take possession of all property and credit cards” and bring proceedings to recover funds or impose penalties.

The move to install administrators via the FWC was made by the Albanese government after allegations were revealed of kickbacks, intimidation, and thuggery on taxpayer-funded building sites.

In Victoria, the CFMEU has employed delegates on work sites that have alleged links to organised crime and bikie groups, as it took over the $100bn Big Build.

The CFMEU national executive had made moves to install its own administrator to take over construction divisions of the union, in a bid to retain some control over the process.

In a statement released on Friday, the FWC said Mr Irving’s experience “is extensive and includes acting in significant matters relating to both unions and employer organisations”.

It said that the CFMEU members would continue to be represented.

The CFMEU national executive had made moves to install its own administrator. Picture: Getty Images

“The members of the Construction and General Division of the CFMEU and the broader community deserve to have confidence in the ongoing effectiveness of the administration proposed in the scheme, which will take as long as necessary to bring the Branches of the Division into lawful compliance, and then systemically embed this governance for the future,” the statement says.

“The administrator will be required to ensure that the rights of members of the union continue to be protected.

“The administration of the Division or a Divisional Branch will only end after the administrator certifies that it is functioning effectively, and the Fair Work Commission’s General Manager agrees.”

Business Council chief executive Bran Black said that given the serious nature of the allegations raised, an inquiry was needed to get to the bottom of what had occurred.

“The CFMEU allegations are likely to be the tip of the iceberg and we need a full royal commission now to uncover how deep the rot goes,” Mr Black said.

“Without full public transparency, how can the Australian public have faith these serious issues of alleged corruption and crime won’t happen again?”.