Merger between militant unions CFMEU, MUA approved

Australian Mines and Metals Association director slams the FWC’s approval of merger of construction and maritime unions.

The MUA and the CFMEU are the two most militant unions in Austraila. Picture: Stuart McEvoy.

UPDATE: The Australian Mines and Metals Association said today it was considering its legal options after the Fair Work Commission approved the merger of the nation’s two most militant unions into a 144,000-member super union.

The AMMA said options could include an initial appeal to a commission full bench or the Federal Court to overturn approval of the merger between the Construction, Forestry, Mining and Energy Union and the Maritime Union of Australia..

“It beggars belief that the intention of our workplace laws is to allow two unions with a history of law-breaking and many outstanding proceedings to merge, fuelling their capacity for greater lawlessness,” said AMMA director workplace relations, Amanda Mansini.

“Clearly, allowing these unions to pool their financial resources, combine their lawless cultures and align their strategies for disrupting businesses across Australia, is far from the best interests of the industry nor the broader Australian community.

“AMMA, with the backing of the Master Builders, will be assessing our options to protect Australian industry and jobs, following today’s decision. We have no option but to do all we can to try and prevent this impending disaster for Australians.”

Senior industry figures criticised the failure of the Turnbull Government to pass proposed legislation that would have subjected the merger to a public interest test.

The commission today dismissed a last-minute legal appeal by employers and approved the amalgamation, which also includes the textile clothing and footwear union, to come into operation from March 27.

The new super-union will have combined assets of $310 million and annual revenue of $146 million, according to employer submissions to the commission.

CFMEU national secretary Michael O’Connor said the merged union would “hit the ground running”.

“Big business has too much power, we have record levels of inequality in our community, and working families are finding it hard to make ends meet,’’ he said. “We will be fighting every day to restore the fair go.”

“What you can expect from us is a clear focus on what we have to do to turn our country around.

“We are absolutely committed to a change of government, to changing the rules to restore balance and fairness into our communities, and to growing our movement.

“It’s time for big business to stop riding on the coat-tails of everyday working Australians, time the banks stopped ripping people off, and time for every business in this country to pay tax. Nearly 700 big corporations pay no tax, which is a national scandal.”

Employers have promised to take action in the Federal Court and, if necessary, the High Court to try to overturn the commission’s approval of the merger.

The Australian Mines and Metals Association claims there is “no doubt the stability of the ­supply chain, from pit to port, is at risk if the CFMEU/MUA merger is allowed to go ahead”.

Master Builders chief executive Denita Wawn said today “the creation of a large, militant ‘super-union’ is a backwards step for builders, the industry, and our country”.

“It is hard to imagine any other situation where a merger with ramifications so dire would be allowed to happen, and the community has every reason to hold serious concerns about what this means for them”

“Even worse, the key partners in this ‘super-union’ seem to take pride in taking illegal action, believing they are above the law which applies to the rest of the community.”

Former Employment Minister Michaelia Cash announced plans to subject the planned merger to a public-interest test in 2016, claiming it would be a “priority election policy” and a re-elected Coalition government would act to have it passed as soon as possible.

The bill says the commission must not only have regard to the compliance record of unions but the impact a merger would be likely to have on employers. It allows Senator Cash, employers and conservative state government ministers — all opposed to the MUA-CFMEU merger — to make submissions opposing the merger.

But the government failed to get Senate crossbench support for the bill and have yet to put it up for a vote.

In his decision, commission deputy presidemt Val Gostencnik noted parliament had yet to pass laws that made the compliance record of the unions a bar to approving their amalgamation.

“Lest it be said that, by discharging my duties under statute which I am bound to do by my oath of office and by law, I condone any of the conduct for which any of the applicant organisations or various of their officials have been held to account by the courts, nothing could be further from the truth,’’ he said.

“On no view can it be said that the conduct is acceptable and judicial officers have, particularly over recent years, been unanimous in the strong and unequivocal language used to describe and condemn some of the conduct.

“But if that is to be a bar to the fixing of an amalgamation day in connection with the amalgamation of organisations under the Registered Organisations Act, then it is a matter for the Parliament to decide and legislate accordingly. On my reading of the statute it has not thus far done so.”

Workplace Relations Minister Craig Laundy said today the commission had “no option” but to fix a merger date/

“Currently there is no capacity for the Fair Work Commission to consider the impact of an amalgamation of registered organisations where one may have a history of non-compliance with the law,’’ he said.

He said there was limited grounds for the government to intervene in these matters, even when the merger can have a major economic impact.

“It is now up to the union officials to work cooperatively and within the law to ensure the best interests of all its members and the country are represented under the new arrangements,’’ he said

He criticised the ALP for not supporting the bill

“The Government remains of the view that any proposed merger of registered organisations with significant economic power should be subjected to a public interest consideration in the same way that the merger of companies with significant economic power would be,’’ he said

Ms Wawn said the “community has every right to question how two of the most militant unions in Australian history could be allowed to get bigger”.

“No government – Labor or Coalition would allow a corporate merger which resulted in the formation of an entity with the capacity to shut down multiple supply chains and effectively hold the economy to ransom. But this is exactly what this decision will create,” she said.

“The MUA and CFMEU appear to share a common belief that they are above the law and are renowned for using tactics such as bullying, intimidation, and industrial thuggery on anyone who disagrees with them.”

Textile Clothing and Footwear Union of Australia national secretary, Michele O’Neil, said the combined strength of the three unions “will write a new chapter in Australia’s union movement”.

“Ordinary workers now have a powerful new force for change on their side,’’ she said.

“Big business and the Federal Government should now get out of the way so we can get on with winning better pay, conditions, rights, and secure jobs for our members.’’.

MUA national secretary, Paddy Crumlin, who becomes the international president of the new union, said the commission decision was an important part of the renewal of the union movement.