The New South Wales (NSW) government has asked the NSW Industrial Court to appoint an administrator for the state’s construction and general division of the Construction, Forestry and Maritime Employees Union (CFMEU). This follows similar action to the federal court by the Fair Work Commission (FWC) last week.
The joint action is needed because the union’s NSW branch has dual registration under the federal and NSW industrial relations systems.
In addition, a Bill will be introduced into parliament to amend the Industrial Relations Act to ensure there are no doubts about the administrator’s validity or powers.
The changes would effectively see the administrator—senior Victorian barrister Mark Irving—step into the role of the state secretary and give him the power to suspend office holders without remuneration.
The wide-ranging powers extend to making changes to the organisation and overseeing the union’s funds and assets, and the term could be for as long as five years.
Labor Moves Against Major Donor
The CFMEU is a major donor to Labor—it accounted for more than a third of all unions’ declared donations to federal Labor in 2021/22.
Despite this, NSW Labor Premier Chris Minns said his government had taken strong action to “clean up” the construction division of the CFMEU.
NSW Labor has cut ties with the union, while Victorian Premier Jacinta Allan has vowed to tear the “rotten culture ... out by its roots.”
But a prominent Victorian KC Frank Parry has warned that all the current inquiries into the union will fail “due to inadequate resourcing and lack of real will.” He believes an administrator will “practically achieve little.”
“Despite all the work done by the fourth estate to uncover the truth, there are too many players here who have no interest in digging up the depths of alleged criminality and corruption within the building and construction industry,” Parry said.
Parry characterised the Victorian government’s response as showing “utter contempt for the state’s criminal justice system.”
“Its inquiry into the construction industry is nothing but a smokescreen and will not uncover anything substantial in the short time it will operate,” he said.
“The Fair Work Commission doesn’t have the powers or the resources to pursue the most serious allegations, and the Victorian police have yet to implement a taskforce with enough means to tackle the union behemoth either.”
He recommends the federal government establish a multi-jurisdictional police taskforce alongside a Royal Commission.
He added that there needed to be “legislative change to ensure the Fair Work Commission and a properly restored ABCC have the resources and powers to act.”
Master Builders Association of NSW Executive Director Brian Seidler took a more optimistic view, welcoming what he called “this vital step to help ensure the ongoing integrity and viability of the industry in our state.
“The appointment of an administrator will help bring about changes to the union,” he said.
