Fair Work takes action to appoint CFMEU administrator

In short:

The Fair Work Commission has appointed attorney Mark Irving KC as its administrator.

The administrator could have the right to remove 270 officials from the union.

What’s next?

If the CFMEU rejects the legal motion, the government says it will prepare a bill for the next session of Parliament.

The Fair Work Commission has applied to the court for a full takeover of the CFMEU at national, state and territory levels in a bid to clean up the situation within the construction union.

In a long-awaited move, the commission on Friday sought approval to appoint Victoria barrister Mark Irving KC as union leader.

If the initiative is successful, the administrator could potentially remove up to 270 officials and manage the union’s finances and assets for up to two years.

Industrial Relations Minister Murray Watt, who was sworn in on Monday, warned the CFMEU against opposing the move.

“This is the strongest action the government has at its disposal and the strongest action any government has ever taken against an Australian union or employers’ group,” he told reporters on Friday.

Watt: “There is no place for crime”

The Commission intends to appoint Mr Irving and a team of assistant administrators to deal with the situation in this imperiled organisation.

The cause was a series of damaging media reports about the organisation’s links to organised crime and the use of “desensitisation” tactics.

The commission said the administrator would oversee the division’s board of directors and offices in Victoria, Tasmania, New South Wales, Queensland, the Northern Territory and South Australia.

“The remaining divisional units in Western Australia and the Australian Capital Territory will continue to operate as normal but may be included in the program at a later date following an application to the court,” the commission said.

“There is no place for crime and corruption in the construction industry, and bullying, thuggery and intimidation are unacceptable in any workplace,” Senator Watt said.

“Enough, enough already.”

Government ready to introduce new regulations

The government said if the CFMEU opposed the intervention it would prepare legislation for next week’s session.

“The Government will introduce legislation to establish an appropriate administrative system as quickly and efficiently as possible,” Senator Watt said.

Landing…

“It would include serious penalties for undermining or circumventing the administration’s plan.”

In response to the allegations, Labor last month froze donations from branches in New South Wales, Victoria, South Australia and Tasmania.

Branches of the party’s national board were also suspended.