Federal Government Appoints Administrator to Handle CFMEU Troubles
The Fair Work Commission general manager will serve as an independent administrator in response to what has been described as ‘abhorrent’ behavior within the union.
The federal government has designated an independent administrator to oversee the Construction, Forestry and Maritime Employees Union (CFMEU) following allegations of crime and corruption.
Workplace Relations Minister Tony Burke appointed Fair Work Commission General Manager Murray Furlong as an independent administrator on July 17.
“The general manager of the Fair Work Commission is the best person to take this action,” he stated.
“Any action taken by the general manager in relation to the construction division of the CFMEU will be supported by me as minister.”
Mr. Burke mentioned that additional necessary actions will be prioritized when parliament resumes on Aug. 12.
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The minister condemned the reported actions of the union as unacceptable and vile.
Federal and state law enforcement will proceed with investigations into crime and corruption allegations involving the CFMEU.
The CFMEU’s national office has already placed its Victorian and South Australian branches under administration and initiated an internal inquiry, though questions have been raised about its impartiality.
New South Wales (NSW) Premier Chris Minns also took steps to suspend the CFMEU from the Labor party.
Mr. Minns and NSW Treasurer Daniel Mookey penned a joint letter to the NSW Labor party secretary general following the crime and corruption allegations against the CFMEU.
They demanded prompt action to suspend the union’s construction and general divisions and cease affiliation with the party or donations.
“There is no room for illegal or corrupt behavior in the construction industry, within unions, or anywhere else,” Mr. Minns emphasized.
“It is evident that the CFMEU construction and general division cannot rectify its own issues.”
The CFMEU has been embroiled in controversy, with hidden cameras capturing its NSW construction leader Darren Greenfield accepting $5,000 in cash from a building company owner before placing it in a drawer.
These recordings led to corruption charges against Mr. Greenfield and his son Michael, who are awaiting trial.
Meanwhile, former Victorian CFMEU leader John Setka was recently suspended after a dispute with AFL umpire boss Stephen McBurney.
The union’s manufacturing division has sought independence amidst the turmoil, while other investigations have implicated bikie and criminal connections in the CFMEU’s construction sector.
Industry body Master Builders Australia released a statement on July 14 highlighting alleged underworld ties with the CFMEU, noting that union representatives show a complete disregard for law and industry.
Master Builders called for a well-staffed police task force, a review by the Fair Work Ombudsman, an investigation by the Australian Competition and Consumer Commission into competition law violations, and granting the Fair Work Ombudsman additional powers if needed.
“The CFMEU represents less than 10 percent of industry participants, yet their strong control over builders, subcontractors, and clients must end,” Master Builders stated.
However, Opposition Leader Peter Dutton believes the Albanese government should take further action.
He criticized the appointment of an administrator as a “feeble response” with potential costs to Australians.
“Reports suggest that in Brisbane, apartments could be up to a third more expensive under CFMEU agreements, with a 10 percent increase in Sydney,” he added.
