Fair Work bid to CFMEU into administration

Senior barrister Mark Irving would have the power to sack officials, forensically audit financial records and seize property.

The CFMEU is seeking legal advice about the bid to appoint an administrator. Picture: David Clark

Senior barrister Mark Irving would take control of key CFMEU construction divisions and have the power to sack officials, forensically audit financial records and seize property if the Fair Work Commission succeeds in its bid to put the union into administration for years.

The Albanese government will intervene in support of the Federal Court application, warning special legislation carrying new penalties would be introduced to impose the administration if the union sought to frustrate the court proceedings.

CFMEU national secretary Zach Smith said on Friday the union was seeking legal advice about the application and would not state if it would be opposed.

In an update to members, Mr Smith claimed the union “will come out of this stronger than ever”. He criticised the FWC for refusing to meet with him in recent weeks to discuss any concerns about the union, claiming its response was evasive and erratic.

In the wake of damaging allegations that the union has been ­infiltrated by underworld figures and outlaw bikie gangs, the commission initiated proceedings to have Mr Irving appointed administrator of the CFMEU’s construction divisions in Victoria and Tasmania, NSW, Queensland, the Northern Territory and South Australia.

If successful, Mr Irving will be awarded an array of powers including the ability to remove union officers, officials and employees from their positions, take possession of property and credit cards and bring proceedings to recover funds, impose penalties and award compensation.

FWC general manager Murray Furlong is also seeking the appointment of KordaMentha to undertake a special purpose audit into the financial position of the divisions.

The commission will urge the court to have Mr Irving appointed as administrator for “as long as necessary” to bring the divisions into “lawful compliance” and embed proper governance.

The commission said it wanted to ensure the CFMEU could meet “the expectations and act in the interests of its members, lawfully and in a proper and democratic way, and in accordance with its statutory obligations and the expectations of the broader community that it operates within.”

New Workplace Relations Minister Murray Watt said the Albanese government supported the “strong actions” of Mr Furlong, including his choice of Mr Irving, and the minister would intervene to support the court application, on behalf of the government.

Senator Watt predicted this week it would take years to reform the CFMEU. He said the union “cannot be relied on to reform itself” following the embattled union’s announcement it had appointed an anti-corruption investigator Geoffrey Watson to probe allegations against the union.

Senator Watt said on Friday the court application was about ensuring the construction division effectively performed its No.1 job – looking after its members.

“There is no place for criminality or corruption in the construction industry, and bullying, thuggery and intimidation is unacceptable in any workplace,” the minister said.

If the proceedings were not consented to by the union, and the matter was not resolved before parliament returns this month, he reiterated the government would introduce legislation to enable the establishment of an appropriate scheme of administration.

Senator Watt revealed the bill would contain serious penalties for undermining or avoiding the scheme of administration.

He said the court application, if successful, would vacate 272 individuals from office, seize control over finances and assets, and would control a majority vote in the relevant branches.