High Court win paves way for CFMEU clean up

The court rejected a legal challenge to the federal government’s takeover of the CFMEU’s construction division, in a win for Labor and a defeat for the union’s sacked officials.

The High Court ruling is a major defeat for the union’s ousted officials. Picture: Britta Campion

You can now listen to The Australian's articles. Give us your feedback.

You can now listen to The Australian's articles.

The High Court has dismissed a legal challenge to the federal ­government’s takeover of the CFMEU’s construction division, clearing the way for union administrator Mark Irving to clean out the union and whistleblowers to come forward to expose alleged corruption and criminal conduct.

The Albanese government, the ACTU, and employers welcomed the unanimous court ­decision dismissing all the grounds for the challenge by former Queensland secretary ­Michael Ravbar, including that the administration legislation was unsupported by a head of commonwealth legislative power; infringed the implied freedom of political communication; and infringed the Constitution.

Mr Irving, who had expressed concern the challenge had frustrated his ability to get whistleblowers to come forward as they feared ex-officials could be returned to power, welcomed the rejection of “the attack on the legitimacy of the administration”.

Administrator Mark Irving says the decision paves the way for greater reforms. Picture: Alex Coppel

“The decision provides clarity and it paves the way for the greater systemic reforms necessary for the union and across the industry,” he said.

“Along with the CFMEU, employers, regulators and governments all have a role to play in rooting out malignant and violent actors from the construction ­sector.”

The construction division was forced into administration last year following damaging allegations about the union’s links to ­organised crime and outlaw ­motorcycle gangs.

Workplace Relations Minister Amanda Rishworth welcomed the court decision and reiterated the government’s position that it “will not tolerate criminal behaviour, corruption or violence in the construction industry”.

Ms Rishworth noted the existing whistleblower protections and said the court decision “should give people confidence to come forward and speak with the administrator if they have any ­information to provide”.

The government was committed to the administrator remaining in place until the job was done.

“We need to focus on shifting the culture in the construction industry and ensure the bad actors we have seen infiltrating this sector are kept out,” she said.

Australian Industry Group chief executive Innes Willox said the industry had, to date, been underwhelmed by the achievements of the administration.

“Beyond addressing criminality, there is a real sense that the administration has shown far too much acceptance of continuing a ‘business as usual’ approach to the CFMEU’s practices,” he said.

“The government must now take concrete steps to ensure the CFMEU’s failures are never repeated – in any sector or union.”

ACTU secretary Sally McManus is determined to rid the union of organised crime, violence and corruption. Picture: Ian Currie

ACTU secretary Sally McManus said it was essential that the union was free of organised crime, violence and corruption.

“People who engage in these behaviours do not share our union values and have no place in our movement,” she said.

“Taking on criminal elements and behaviour is not easy, but the job must be done so the period of administration can come to an end and the union can go to elections free of these elements and return to its place as a strong, proud, respected union within our movement.”

Mr Ravbar was ­disappointed by the outcome, saying it showed how “incredibly difficult” it was to overturn such legislation.

“What this result does show, however, is just how easy it is for hostile governments in cahoots with the ACTU to interfere in the operations and running of democratically run unions,” he said.

“It took little more than spurious allegations broadcast on a tabloid current affairs program. That should be of deep concern to any trade unionist.”

Master Builders Australia chief executive Denita Wawn.

Master Builders Australia chief executive Denita Wawn said the court decision “clears the path for long-overdue cultural ­reform in the building and construction industry”.

“This ruling is a victory for every builder, subcontractor, apprentice and business that has suffered under a culture of intimidation, coercion, and disregard for the rule of law,” Ms Wawn said.

She added that Master Builders Australia acknowledged the government’s “leadership and political bravery” in acting against the union.

Opposition industrial relations spokesman Tim Wilson reaffirmed the Coalition’s support for deregistering the union, saying the court decision did not solve the bullying, violence and corruption on construction sites released by Labor’s abolition of the Australian Building and Construction Commission.