Union officials did not go to police but instead went to Mick Gatto to negotiate threatening and abusive behaviour

A report has found that when it came to trying to settle disputes among the union, Melbourne underworld figure Mick Gatto “came with the furniture of the job”.

Mick Gatto helped CFMEU officials negotiate threatening and abusive behaviour, a report found. Picture: Aaron Francis

A legal battle that could return former CFMEU leaders to power is hindering efforts to crack down on corruption and menacing conduct within the militant construction union and industry.

That’s the warning from CFMEU administrator Mark Irving in his first biannual report, tabled in the federal parliament on Tuesday.

Mr Irving said the administration had sought to address “corruption and confront menacing conduct”, but the unresolved High Court challenge in the decision to place the CFMEU into administration had impeded its strategic plans.

“Uncertainty about whether the former leadership is returning to power has, in some cases, impeded the administration in obtaining full and frank disclosures from complainant,” he wrote.

CFMEU administrator Mark Irving released his first biannual report, which was tabled in the federal parliament on Tuesday. Picture: Alex Coppel

“The engagement of the best new staff, reallocating resources and performing the necessary work has been stymied.

“There is little incentive for employees, delegates, employers and employer peak bodies to fully commit to a reform agenda when some members of the former leadership have intimated that full collaboration with the administration may result in a further cycle of retaliation.”

Mr Irving also included anti-corruption barrister Geoffrey Watson SC’s report into allegations of criminal and corrupt conduct in the Victorian and Tasmanian branches, which found officials did not go to police but Melbourne underworld figure Mick Gatto “to negotiate” threatening and abusive behaviour.

“I was told by one senior official that Mick Gatto ‘came with the furniture of the job’,” Mr Watson’s report states.

Mick Gatto ‘came with the furniture of the job’, according to one senior official. Picture: Getty

“Many of the officials I interviewed said that they had seen or met with Faruk Orman and Mick Gatto at the CFMEU offices on Elizabeth Street.

“I was told that there were occasions where EBA paperwork was brought to Mick Gatto while he met with senior officials.”

Mr Irving said while some action to clean up the construction union had been done, some steps must await the pending High Court judgment.

Workplace Relations Minister Murray Watt said the administrator and his team continued to make good progress in cleaning up the CFMEU and ensuring its members were well represented.

“It was unsurprising that a High Court challenge was launched by disgruntled former leaders of the union, and we will await the decision of the court,” Senator Watt said.

“We will continue to provide our full support to the administration as it performs its crucial and challenging task.

“We are committed to ensuring that the administration continues and that the administrator has sufficient powers to restore the union to lawful and effective functioning.”