CFMEU Administration update from RCR Lawyers the Construction, Forestry and Maritime Employees Union has had its construction arm forced into administration, effective immediately.
FORCED ADMINISTRATION
Federal Attorney-General Mark Dreyfus announced on Friday, 23 August 2024, that the CFMEU will be taken over by an appointed administrator for at least three years after investigations have led to accusations of bullying, intimidation and corruption within the union.
Mark Irving KC, Victorian barrister, has been appointed as administrator, effective immediately. Since Mr Irving KC’s appointment, up to 281 union officers have been relieved on their duties, both in voluntary and employed capacities.
NEW LEGISLATION
Last week, the Albanese government enacted laws to place the CFMEU into administration. The bi-partisan support to pass this legislation followed a joint investigation by the Australian Financial Review, The Sydney Morning Herald, and the Age which uncovered criminal and motorcycle gang (or ‘bikie’) affiliation and infiltration within the union.
The amendments to the Fair Work (Registered Organisations) Amendment (Administration) Act 2024 (Cth) allowed the government to take swift action against the union and immediately appoint an administrator.
THE ALLEGATIONS
Allegations of bullying, corruption, criminal and bikie infiltration have been circulating for years, and the public’s criticism of the CFMEU has not waivered. One allegation is that that bikies, though various intimidation tactics, have been appointed as delegates on some of Australia’s largest projects.
Since the appointment of the administrator, Prime Minister, Anthony Albanese, has warned construction workers taking part in unprotected industrial action that there are serious consequences for doing so. Prime Minister Albanese said “the government is not for turning and nor is the Australian public — they want to see this industry cleaned up”.
The appointment of an administrator is a clear sign that the government intends to investigate the allegations against the CFMEU and remove any and all criminal activity that may have infiltrated Australia’s most powerful union.
REACTION BY CFMEU MEMBERS
In protest against the government’s actions, and the appointment of an administrator, CFMEU members and supporters took to the streets of each Australian capital city to voice their frustrations. Tens of thousands of members gathered across the country, including a crowd of approximately 50,000 in Melbourne’s CBD with members’ questioning the government’s power to appoint an administrator to the union.
Unions including the Electrical Trades Union and the Maritime Union of Australia have vowed to fund legal challenges to the government’s CFMEU administration laws.
The High Court action is likely to argue the Commonwealth lacked the authority to take over a democratically organized union and remove union officials, who had not been convicted of any offence.
Details of a formal action against the new laws and the government’s actions is likely to be brought to light in the coming weeks.
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