Labor’s legislation, which empowers the minister to place the Construction, Forestry, and Maritime Employees Union’s (CFMEU) construction and general division under administration, has finally secured Opposition support after initial delays in the Senate.
The law mandates a minimum three-year administration period for all branches and imposes a lifetime ban on officials with criminal records.
As per the new bill, the administration period could extend to five years, with the duration contingent on the administrator’s recommendation.
The Opposition initially withheld support, demanding explicit prohibitions on donations and political campaigning during the administration, along with a requirement for the administrator to testify before a Senate committee.
The bill won Coalition backing after Labor provided a letter from the administrator assuring that no funds would be allocated to political activities or donations.
Additionally, Fair Work Commission head Murray Furlong agreed to appear before the Senate committee.
The government had previously raised the possibility that a legislated ban on donations might face a High Court challenge.
On Aug. 19, as Parliament commenced discussions on the bill, Opposition Leader Peter Dutton remarked, “I commend this bill to the House, and I think there should be a very robust discussion in advance.”
During the question-and-answer session, Home Affairs Minister Tony Burke stated, “We’re at a critical juncture where the uncertainty surrounding the content and timing of an administration is beginning to have tangible effects on the industry, both in terms of project outcomes and business operations.
“The industry cannot afford continued uncertainty, so we call on all parties to finalize and pass the bill without further delay.”
Opposition workplace relations spokesperson Michaelia Cash expressed confidence that her proposed amendment would have resolved any constitutional issues but was willing to accept the assurances provided in the letter.
“That is possibly the most significant part of what we wanted,” she told reporters in Canberra.
Once the legislation passes the Senate, it will need approval from the government-controlled lower house.
However, the construction division will not be immediately placed under administration, as the minister must first navigate several regulatory procedures.
Workplace Relations Minister Murray Watt underscored the need for an effective union to represent workers in the construction industry, acknowledging the challenges within the sector.
“This is hard, dangerous work in construction,” he told ABC radio. “But they need one that’s clean and free from the constant allegations of organized crime, bikies, and on-site violence that surround this union.”
Building industry groups have been urging both sides of the government to pass the legislation, arguing that each day without external oversight contributes to further delays at affected construction sites.
“I hope for your sake that the delay over the weekend ... has not led to money being transferred that we then find out about,” senior minister Senator Penny Wong remarked to the opposition benches in the Senate chamber on Monday.
