Powerful new laws to break up the CFMEU given green light in federal parliament

New laws will enable the manufacturing division to split from the broader militant CFMEU, with the move coming after John Setka threatened to derail AFL-related projects unless the league sacked its head of umpiring.

Powerful new laws to break up the CFMEU have been given the green light by the federal parliament.

The Senate on Tuesday passed a government bill that would enable the manufacturing division to hold a ballot to split from the broader militant union.

The move comes after controversial union boss John Setka threatened to derail AFL-related projects unless the league sacked its head of umpiring Stephen McBurney, the former boss of the Australian Building and Construction Commission.

The bill passed 46-10 with an amendment calling on the government to amend the Fair Work Act to ensure that anyone convicted of more than 10 criminal offences cannot be appointed as an officer of a registered organisation.

CFMEU boss John Setka. Picture: Roy VanDerVegt

The manufacturing division of the CFMEU welcomed the new law, which will enable members to vote on whether it should withdraw from the CFMEU.

National secretary Michael O’Connor thanked Employment Minister Tony Burke and Tasmanian Senator Jacqui Lambie for doing “the right thing by our members”.

Mr O’Connor said it was “disappointing” that the Greens voted against the legislation, adding the crossbenchers “oddly seem to think they are better placed than our members to determine what is best for them, their families and their communities”.

He said the division had sought to put the question of whether to withdraw from the CFMEU to its members for some years but was frustrated by the construction division’s opposition.

The manufacturing division of the CFMEU welcomed the new law. Picture: Scott Barbour/Getty Images

“Our members are now on a pathway to a more active and respected role in the labour movement which they can achieve by formally dissociating themselves with the CFMEU and its ever-deteriorating reputation,” he said.

Employment Minister Tony Burke, when introducing the legislation last week, said it was not hard to see why members may want to leave.

“It’s clear many manufacturing division members, including workers in heavily feminised industries like textiles, do not feel properly represented,” Mr Burke said.

CFMEU national secretary Zach Smith previously blasted Labor for reinstating “Coalition-era powers” warning it could hurt workers.

Former ACTU secretary Bill Kelty this week condemned John Setka’s threats against the AFL and backed the new laws to break up the CFMEU.

CFMEU national secretary Zach Smith said the bill could set a dangerous precedent. Picture: AAP Image/Joe Castro

Opposition workplace relations spokeswoman, Senator Michaelia Cash, accused the Albanese government of making a “big song and dance” about the bill but said it was “too weak to deal with any of the root causes of that dysfunction”.

“What’s really happening here is that Anthony Albanese and Tony Burke are delivering a minor slap on the wrist to the CFMEU for the outrageous bullying demands of union boss John Setka, that the AFL sack former ABCC boss Stephen McBurney as head of umpiring,’’ she said.

CFMEU national secretary Zach Smith said it was disappointing that the government pushed ahead with a bill that could set a “dangerous precedent” for breaking up unions.

“Union coverage should not be decided by governments or legislation,” Mr Smith said.

“The CFMEU will never apologise for being a strong militant trade union that delivers industry-leading pay rises and wins world-first safety campaigns, like the engineered stone ban that came into place yesterday.

“The construction union is by far best placed to represent construction supply chain workers, whose best interests cannot be served by a small organisation facing financial ruin.”