CFMEU: Government’s crackdown on troubled union faces go-slow in Senate

The building sector has urged politicians to quickly pass laws that will enable a crackdown on the construction union as the Coalition and Greens signal they are not yet satisfied with the legislation.

The non-government parties were briefed on the new powers allowing Workplace Relations Minister Murray Watt to put the CFMEU into administration shortly before he introduced the bill to Parliament on Monday morning.

Senator Watt hopes the bill can pass as quickly as this week.

The Coalition and Greens will decide their positions when their party rooms meet on Tuesday.

But both have flagged the possibility of a short committee inquiry that may push action against the union off for a month.

Master Builders of Australia chief executive Denita Wawn said the powers to appoint an administrator needed to be granted urgently.

“We urge all parties to support the legislation currently before them and stress this is only the first in a series of measures that are required to stamp out this culture once and for all,” she said.

“Calls for yet another review or inquiry, while well-intentioned, will not help government, law enforcement and regulators get on with the job because we already know what the problems are, how they arise, and how to fix them.

“We need action now. It must be swift; it must be permanent. The building and construction industry can no longer be a political football.”

The Fair Work Commission has applied for a court order to place the Victorian, Tasmanian, NSW, Queensland, NT and South Australian branches of the CFMEU into administration in the wake of allegations about corruption and the involvement of bikies, but the union intends to fight that application.

Senator Watt told the Senate the Government wanted strong action to address the union’s issues.

The bill before Parliament covers all branches of the union, including in the WA and ACT.

“It is the government’s firm view that enabling administration, not deregistration is the strongest action to take in these circumstances,” Senator Watt said.

“Deregistration of the construction and general division would not stop the union from participating in a range of industrial activities like bargaining.

“Placing the construction and general division into administration would maintain the regulation and additional oversight that applies to registered organisations and ensure the division acts in the best interests of its members.”

Ms Wawn also cautioned that deregistration had not worked in the past.

The government has also briefed business organisations including Ai Group, ACCI, the Business Council of Australia and COSBOA on the legislation.

BCA chief executive Bran Black has warned the laws must give the administrator sufficient powers including to compel evidence and protect whistleblowers.

The legislation allows the minister to put all branches of the union into administration for up to three years and requires the CFMEU to cover the cost.

The administrator will have the power to remove union officers from their jobs and take control of their property and finances.

It also sets up anti-avoidance measures backdated to when the allegations were first aired in July to make sure union figures do not destroy evidence or shift funds around, with fines of up to $187,000 for individuals found in breach.

The Coalition has raised concerns about some of the measures it believes give the minister too much discretion and do not necessarily match his rhetoric.

This includes the power to end the administration process at any point before the three years are up and to remove any of the state branches from it, without necessarily having to take the advice of the administrator.

The Nightly understands the government may circulate changes to the bill within days of its introduction.