CFMEU seeks legal advice over administrator orders

The CFMEU is seeking legal advice over Federal Court proceedings launched against it by the national union watchdog, insisting it has done “everything possible” to co-operate with authorities.

The Fair Work Commission is looking to have the embattled union placed into the hands of an independent administrator, with the federal government vowing to support the move.

Workplace Relations Minister Murray Watt has also backed the legal submission made by the FWC, saying it was “the strongest action ever taken by a government against an Australian union or employer group”.

Senator Watt made the statement on Friday after an application was filed by the commission to appoint barrister Mark Irving as independent administrator to the CFMEU’s embattled general and construction divisions.

Mr Irving has been a member of the Victorian Bar for almost three decades and has experience acting on union and employer matters.

Senator Watt said that in the role of administrator, Mr Irving would be able to “terminate the employment” of those in CFMEU who have “done the wrong thing.”

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

“Enough is enough.”

He said if the CFMEU did not consent to the application for administration “the government will introduce legislation to enable the establishment of an appropriate scheme of administration as swiftly and effectively as possible.”

Senator Watt said the law would not weaken conditions for workers but would ensure the union looked after its members.

“It would contain serious penalties for undermining or avoiding the scheme of administration,” he said.

But CFMEU National Secretary Zach Smith said he had “repeatedly offered” to sit down with the commission’s general manager Murray Furlong during the past few weeks to discuss concerns about the union.

“I have done everything possible – and more – to engage with the commission proactively and provide them with information for their inquiries,” he said in a statement late on Friday.

Mr Smith accused the watchdog of engaging disingenuously, claiming its response had been “evasive and erratic”.

“We have been under attack in the past and we will be again,” he said.

The commission revealed in July it would take action after accusations of criminal misconduct and bikie links were leveled at the union’s construction arm.

Labor’s national executive has already severed ties with the union and will no longer accept political donations or affiliation fees from the troubled construction arm.

Master Builders Australia welcomed the government’s support for the court application although it was disappointed by the exclusion of the ACT and WA in the application.

In a statement, the association said more needed to be done for “lasting change” including stronger protections for people who gave evidence or information to support investigations.

It is also called for the federal government to establish a central body to coordinate various inquiries.

This was made by Business Council chief executive Bran Black, who said the serious nature of the allegations made an overarching inquiry necessary.

“The CFMEU allegations are likely to be the type of the iceberg and we need a full royal commission now to uncover how deep the rot goes,” he said.