Law forcing CFMEU into administration faces delay after Coalition calls for inquiry
Federal legislation forcing the CFMEU into administration is facing delay as Coalition workplace spokeswoman Michaelia Cash says she will be advocating for an inquiry.
A series of revelations about the CFMEU’s ties to organised crime have prompted a federal move to stamp out corruption within the union. However, the Construction, Forestry and Maritime Employees Union has stopped the government from naming an administrator and has challenged the move in court, prompting Workplace Minister Murray Watt to introduce a bill on Monday to force the union into administration.
Opposition workplace spokeswoman Michaelia Cash and Workplace Minister Murray Watt.Credit: Alex Ellinghausen
The push for legislation was been prompted by the Building Bad investigation by this masthead, The Australian Financial Review and 60 Minutes. It revealed the CFMEU had been infiltrated by bikies and organised crime, and triggered the resignation of former CFMEU Victoria division leader John Setka.
Under the proposed law, Watt would be able to decide if it is in the public interest to appoint an administrator to take charge of all branches of the CFMEU. The legislation includes obligations for officers, employees and professional advisers at the union to co-operate with any administrator, who could be appointed for up to three years. Members could be expelled for up to five years from the union as a form of disciplinary action.
Cash said on Monday she had significant concerns about the legislation, arguing it was only a temporary fix and needed to go to a committee before being passed.
“There is a drop-dead end date of three years, worse than that, individuals can only be banned for up to five years. These people are very good at waiting government out,” she said on Sky News.
“It’s up to Murray Watt when the administration ends, he can end it before the three years, it’s up to Murray Watt which parts of the union stay in administration and don’t, it’s up to Murray Watt what actually goes into the dean of administration, there is no transparency here.”
Cash last week said the CFMEU should be deregistered.
The Coalition’s push for an inquiry was slammed by Watt, who accused Cash of knowing about the criminality in the CFMEU when she was in government and doing nothing.
“For the Coalition to demand strong action on this issue and then seek to delay the passage of this legislation for months shows they’re not serious about fixing the criminality, bullying and thuggery within this union,” he said.
“The Coalition dithered when in power and now they are trying to delay again.”
Earlier, Greens leader Adam Bandt ducked questions about donations the Greens have received from the CFMEU while indicating the party would not back federal legislation forcing the union into administration.
Bandt stopped short of supporting Labor’s plan to force an independent administrator on the union in an interview with ABC Radio National.
“We note that there are several court proceedings on foot and our usual approach is to say, well, those court proceedings should play themselves out,” he said.
Labor’s federal executive has banned donations from the Victorian branch of the CFMEU, however Bandt would not say if the Greens would do the same and said his party has not received a donation from the union since 2013.
Greens leader Adam Bandt.Credit: Alex Ellinghausen
“Donations are a matter for the party … it’s about a decade ago that one branch received donations, over a decade ago, so this isn’t about donations from us,” he said.
“I know others may have received donations, but for us, this is about a matter of principle about what laws should apply across workplaces to ensure that everyone has a safe workplace.”
The legislation will be tabled in the House of Representatives on Monday and will include a maximum penalty of two years imprisonment for those who fail to comply.
Coalition industrial relations spokeswoman Michaelia Cash last week called for the union to be deregistered and on Monday reiterated her concerns about the legislation.
“There is a drop-dead end date of three years. Worse than that, individuals can only be banned for up to five years. These people are very good at waiting government out,” she said on Sky News.
A collection of independent MPs sent a joint letter last week to Prime Minister Anthony Albanese, arguing the government’s response was not strong enough.
“To truly address the issues, we are seeking the establishment of a new oversight body and legislative framework to provide the transparency, accountability and cultural change needed to address the issues within the sector,” the letter stated.
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