The federal government has appointed an independent administrator to oversee the Construction, Forestry and Maritime Employees Union (CFMEU) in the wake of crime and corruption allegations.
Workplace Relations Minister Tony Burke appointed Fair Work Commission General Manager Murray Furlong as an independent administrator on July 17.
“The general manager of the Fair Work Commission is the best-placed person to take this action,” he said.
“Any action that the general manager takes—with respect to any part of the construction division of the CFMEU—I, as minister, will intervene in support of that action.
“I do believe these actions are best taken by the regulator, but any action to appoint an administrator will be supported by me as minister.”
Mr. Burke said the government would prioritise any additional required action when parliament resumes on Aug. 12.
The minister labelled the alleged actions of the union as both abhorrent and intolerable.
Federal and state police will continue to investigate crime and corruption allegations with the CFMEU.
The CFMEU’s national office has already placed its Victorian and South Australian branches into administration and launched its own investigation, but concerns have been raised over its independence.
New South Wales (NSW) Premier Chris Minns also moved to suspend the CFMEU from the Labor party.
Mr. Minns and NSW Treasurer Daniel Mookey penned a joint letter to the NSW Labor party secretary general following the crime and corruption allegations against the CFMEU.
They requested swift and necessary steps to suspend the union’s construction and general divisions and halt affiliation with the party or donations.
“There is absolutely no tolerance for criminal or corrupt behaviour in the building industry, in unions or anywhere for that matter,” Mr. Minns said.
“It is clear the CFMEU construction and general division will not and cannot clean itself up.”
Controversy has plagued the CFMEU, with hidden police cameras capturing its NSW construction boss Darren Greenfield taking $5,000 in cash from a building company owner before placing it into a drawer.
The footage led to corruption charges for Mr. Greenfield and his son Michael, who are still awaiting trial.
Meanwhile, former Victorian CFMEU leader John Setka was recently stood down following a feud with AFL umpire boss Stephen McBurney.
In the controversy, the manufacturing division of the union has sought to break away, while other investigations have alleged bikie and crime links in the construction sector of the CFMEU.
Industry body Master Builders Australia released a statement on July 14 about alleged underworld links with the CFMEU, saying union representatives had a “comprehensive disregard” for law and industry.
Master Builders has called for a sufficiently staffed police strike force, a Fair Work Ombudsman review, an Australian Competition and Consumer Commission investigation into breaches of competition laws, and the government to grant the Fair Work Ombudsman more extraordinary powers if necessary.
“The CFMEU accounts for less than 10 percent of industry participants but their unyielding stranglehold on builders, subbies, and clients has gone on for long enough,” Master Builders said in a statement.
However, Opposition Leader Peter Dutton wants the Albanese government to do more.
He called the move to appoint and administrator a “weak” response that will cost Australians.
“In Brisbane, it’s reported that apartments could cost up to a third more under the CFMEU’s deals, while in Sydney, the increase is reported to be 10 percent more,” he said.
