Jail threat for CFMEU officials frustrating takeover

CFMEU officials risk jail or heavy financial penalties if they seek to frustrate the takeover of the scandal-plagued union.

CFMEU construction divisions will be taken over for at least three years. Picture David Clark

The CFMEU’s key construction divisions will be placed into ­administration for at least three years under new federal laws, with union officials warned they risk jail or heavy financial penalties if they seek to frustrate the takeover of the scandal-plagued union.

Zach Smith, the union’s ­national secretary, slammed the government’s decision to place four of the construction divisions under the control of an administrator, accusing Labor of a “full frontal attack” on the union which undermined the democratic rights of its members.

Workplace Relations Minister Murray Watt warned the laws, ­expected to be passed next week, would establish significant penalties with retrospective effect from July 17 for any officials taking ­action, including destruction of documents, to frustrate or undermine the work of the administrator. The penalties for anti-avoidance behaviour would include up to two years’ jail and a $1m penalty for an individual and $4.6m for a corporation.

A raft of high-profile CFMEU officials face losing their jobs after the administration takes effect, including Michael Ravbar in Queensland, Darren and Michael Greenfield in NSW, and Derek Christopher in Victoria, although sources said separate state legislation could be required to force them out given the employment arrangements of different officials. Senator Watt said the provisions would ensure the administrator was able to effectively access all relevant assets, property and documents held by the union divisions.

He said it was clear the union would not agree to administration in a timely manner and urgent ­action was required to rid the construction industry of organised crime. The government said the proposed scheme would appoint an administrator to the CFMEU’s construction divisions in five states and the Northern Territory for at least three years,

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

“Construction is hard, dangerous work. Those workers deserve representatives that are always acting in their best interests.”

Claiming the government was “playing politics with the serious issues of criminal conduct” in the construction industry”, Mr Smith said the government had undermined the current legal process for a court-appointed administrator. He said the government had not given the CFMEU the ­opportunity to address serious ­allegations against the union ­despite him taking a series of measures since claims of criminality were made last month.

He said while the union was constantly talking to members, politicians and the media had not talked to one member.

“The rank hypocrisy of the government purporting to speak on your behalf without speaking to you clearly shows a blue-collar paternalism where they will tell you what’s best for you,” he said.

In a statement to members on Friday, Mr Smith said the government was targeting the union with extraordinary laws.

“If the government was really interested in addressing issues of criminality, it would not design legislation targeted at the CFMEU, undermining your working rights, it would take ­action targeting organised crime, wherever it is,” he said.

Meanwhile, Senator Watt has appointed former federal Labor MP Terri Butler as a deputy president of the Fair Work Commission. Ms Butler lost her Brisbane seat of Griffith to the Greens at the May 2022 election.