Workplace minister prepares law to force CFMEU into administration

Workplace Relations Minister Murray Watt will force the construction union into administration using powerful new laws if the CFMEU refuses to bring in an independent administrator to clean up the scandal-plagued union.

The escalation comes after a series of revelations about the CFMEU’s ties to organised crime, but the union is yet to agree to an independent administrator, which Watt argues is supported by the majority of the union movement.

Workplace Minister Murray Watt.Credit: Alex Ellinghausen

Watt warned the CFMEU on Thursday that the legislation was “very close” to being ready.

“I’ve made very clear, both in correspondence to the union and publicly that unless the union consents to the application that’s been made to the court to put them into administration, then we will act next week and we will introduce legislation that would enable the administration to go ahead,” he told ABC Radio National.

“These issues need to be dealt with, they need to be dealt with now, and we’re prepared to legislate if that’s what it takes to have action.”

Australian Council of Trade Unions national secretary Sally McManus said she would prefer the CFMEU agreed to external administration, but the peak union body would support the federal legislation “if there’s no other alternative”.

“We hope that the CFMEU sees its best course is to co-operate,” she said.

To date, the embattled construction union has been fighting the federal government’s attempt to install administrators.

Coalition industrial relations spokeswoman Michaelia Cash is yet to see Watt’s bill but said she would be calling for legislation to deregister the union next week.

“Murray Watt is all talk, no action. He’s been a proud cheerleader for the CFMEU for many years and is now pretending he’s getting tough on them. The Albanese government needs to introduce legislation to deregister the CFMEU when parliament returns next week,” she said.

The Building Bad investigation by this masthead, The Australia Financial Review and 60 Minutes revealed the CFMEU had been infiltrated by bikies and organised crime, and triggered the resignation of former CFMEU Victorian division leader John Setka.

On Thursday, it was further revealed the CFMEU assigned Marty Albert – a senior Bandidos bikie enforcer – to work as a union organiser on major Victorian government construction projects and to sit on the governing board of the union branch, a role he was allowed to keep even after he was charged over a violent assault.

The string of controversies prompted Nationals Senate leader Bridget McKenzie and Cash to signal plans to refer misconduct claims in the building industry to the rural and regional affairs and transport references committee.

However, support for the inquiry, which would need majority Senate support, appeared remote, with key crossbenchers at best lukewarm on the proposal.

The opposition has 31 votes in the Senate and would need a majority of 39 to get the inquiry over the line.

The Greens are unlikely to support the Coalition’s proposed inquiry, though will not formally decide until parliament returns next week. However, they are more willing to support an inquiry into the legislation proposed by Watt.

A spokesman for independent MP David Pocock said the senator had not seen the details of the proposed Coalition inquiry but that the feedback he had from stakeholders suggested they wanted action in the form of legislation, rather than another inquiry.

A spokeswoman for Senator Jacqui Lambie said the Tasmanian would back the government’s legislation.

“The Liberals had the opportunity to deal with this when they had the inquiry [Trade Union Royal Commission] under Dyson Heydon. It’s too far down the road now, we need to get this dealt with”.

Meanwhile, independent senator Tammy Tyrrell said she was happy to consider an inquiry but “it can’t just be a free kick for the Coalition”.

“It’ll need to properly look at alternatives for a regulator in this space,” she said.

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