The CFMEU has been placed under the administration of Victorian barrister Mark Irving KC.
Federal Attorney-General Mark Dreyfus announced the decision on Aug 23, declaring it was “in the public interest” following alleged reports of corruption and criminal gang links within the union’s construction arm.
“The scheme of administration of the Construction and General Division of the CFMEU takes effect immediately,” said Dreyfus, in a statement.
The newly appointed administrator, Mark Irving KC, specialises in employment, industrial, and anti-discrimination law.
Over the last decade, he has been involved in more than 100 matters in the Federal Court, as well as three High Court cases.
Irving was selected by the Fair Work Commission earlier this month.
“I have determined a written scheme of administration, and the General Manager of the Fair Work Commission has appointed Mr. Mark Irving KC as the administrator and notified him of his appointment,” Dreyfus said.
This appointment follows allegations of corruption and bikie infiltration within the CFMEU.
The Senate passed a bill earlier this week to make administration possible, with 39 senators in support against 10.
After agreeing to the Liberal-National Coalition’s demands, the Labor government extended the minimum administration term to three years. They also imposed conditions for the administrator to report to Parliament every six months and attend Senate Estimates.
While the CFMEU can still make political donations, there will now be checks and balances with the administrator’s oversight—the union is a major donor to the Labor Party.
CFMEU National Secretary Zach Smith expressed displeasure with the new law, stating that allegations of criminal activity had been addressed internally by removing the implicated officials, even though the charges have not been proven in court.
“Until allegations have been tested by the legal system, people and organisations are entitled to a fair process,” Smith said.
The CFMEU was a highly debated topic during the latest parliamentary session, with the opposition criticising the government for not acting sooner.