In a significant move to address allegations of corruption and criminality within the CFMEU's construction and general division branches, Workplace Relations Minister Tony Burke has announced support for a Federal Court application by Fair Work Commission (FWC) general manager, Murray Furlong. The application seeks to place these branches under administration, underscoring the government's commitment to maintaining integrity in the construction industry.
Minister Burke emphasised the government's determination to see this action through, acknowledging the legal complexities involved. He stated that if the application is challenged and unresolved before Parliament resumes on August 12, the government will introduce specific legislation to ensure the successful appointment of an administrator.
Broad Scope of Administration
Burke clarified that Furlong's authority to appoint administrators will not be confined to the Victorian branch of the CFMEU's construction and general division. This comes in the wake of the resignation of Victorian State secretary John Setka. The scope includes other branches facing similar accusations, indicating a comprehensive approach to tackling corruption within the union.
Actions in New South Wales
In New South Wales, the Minns Labor Government has taken decisive action by suspending the CFMEU from the state Labor Party. Additionally, they have requested the party's general secretary to halt any donations from the union. This follows serious bribery allegations against NSW construction and general division secretary Darren Greenfield.
Protecting Union Members
Minister Burke reiterated that the primary role of any union is to safeguard its members. He condemned the reported behaviour within the CFMEU's construction division, labelling it as "abhorrent" and "intolerable". Burke assured that the government's actions aim to protect members and ensure that their terms and conditions of employment are not jeopardised by the union's misconduct.
Government's Regulatory Measures
To further strengthen oversight, Burke has directed the Fair Work Ombudsman to conduct a targeted review of all enterprise agreements made by the Victorian branch of the CFMEU. This review focuses on Victoria's Big Build infrastructure projects, aiming to identify and address any coercive behaviour.
The government also intends to use its procurement powers to ensure that enterprise agreements on government-funded projects are genuinely agreed upon and free from coercion and intimidation. This move underscores the government's commitment to fostering fair and transparent workplace practices.
Request for Federal Investigation
In response to recent reports by Nine newspapers and the 60 Minutes program, Burke has requested the Australian Federal Police (AFP) Commissioner to investigate the allegations. He urged the AFP to collaborate with State police to thoroughly investigate and prosecute any criminal activities.
Deregistration Not the Solution
While discussing potential sanctions, Burke highlighted that deregistration is not a viable solution under current laws. He noted that deregistering the union could allow it to operate without the regulatory oversight applicable to registered organisations. This could exacerbate the issues rather than resolve them.
Historical Context: BLF and CFMEU
The Builders Labourers Federation (BLF), a precursor to the CFMEU, was a prominent union in the construction industry during the 20th century. The BLF was known for its militant activism and significant influence on construction sites. However, the union faced deregistration in the 1980s due to allegations of corruption and unlawful activities. Deregistration was then the strongest sanction available to address such issues within a registered organisation.
The BLF's deregistration led to the establishment of the Construction, Forestry, Mining and Energy Union (CFMEU), which absorbed many former BLF members and continued its legacy in the construction sector. Over the years, the CFMEU has grown into one of Australia's most powerful unions, representing workers across various industries. However, the CFMEU has also faced its share of controversies, echoing the issues that plagued its predecessor.
Labor Party's Response
Addressing the CFMEU's affiliation with the Labor Party, Burke indicated that the ALP national executive is expected to make strong decisions. He refrained from providing specifics but acknowledged the need for a measured response, considering the ALP national president, Wayne Swan, also chairs CBUS, the construction industry superannuation fund with CFMEU representatives.
Conclusion
The government's proactive measures against the CFMEU's construction and general division branches demonstrate a robust commitment to eradicating corruption and criminality in the construction industry. These actions aim to protect union members, ensure fair workplace practices, and uphold the integrity of Australia's construction sector. The historical context of the BLF and CFMEU underscores the ongoing challenges and the need for stringent oversight to maintain the trust and welfare of union members.
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