NSW Government Requests Administration for CFMEU State Branch
The government has moved to place the national CFMEU office under administration and is now pursuing a similar course of action against its NSW branch.
In a joint effort, the New South Wales (NSW) government has requested the NSW Industrial Court to appoint an administrator for the state’s construction and general division of the Construction, Forestry and Maritime Employees Union (CFMEU). This request aligns with the recent action taken by the Fair Work Commission (FWC) in the federal court.
This combined action is necessary due to the dual registration of the union’s NSW branch under both the federal and NSW industrial relations systems. To solidify the administrator’s position and authority, a Bill will be introduced in parliament to amend the Industrial Relations Act.
If the changes are implemented, senior Victorian barrister Mark Irving will assume the role of the state secretary and be granted the power to suspend office holders without pay. This authority extends to making organizational changes, managing the union’s finances and assets, with the term potentially lasting up to five years.
If the federal court action initiated by the FWC is successful, administrators could also be appointed to the Victoria, Tasmania, Queensland, Northern Territory, and South Australian branches of the CFMEU.
Despite being a significant donor to the Labor party, accounting for over a third of all declared donations to federal Labor in 2021/22, the CFMEU is facing stringent action from the NSW government to address issues within its construction division.
NSW Labor Premier Chris Minns emphasized the importance of safeguarding honest workers and union members, distancing NSW Labor from the union. Meanwhile, Victorian Premier Jacinta Allan has pledged to eradicate the “rotten culture” from its roots within the CFMEU.
While some believe that the current inquiries and actions against the union may not result in significant change, others like Master Builders Association of NSW Executive Director Brian Seidler see the appointment of an administrator as a crucial step towards enhancing the industry’s integrity.
It is recommended by some, like Victorian KC Frank Parry, that there be a more comprehensive approach, such as establishing a multi-jurisdictional police taskforce alongside a Royal Commission, to address alleged criminality and corruption within the building and construction industry.
AAP contributed to this story.
