Key Points
- Legislation giving the minister the power to appoint an administrator was passed by the Senate on Monday.
- The opposition agreed to adopt the bill after obtaining several amendments.
- The union criticized the law, saying it deprives members of the right to a fair process.
The fate of the Construction, Forestry and Maritime Employees’ Union (CFMEU) was sealed after the coalition gave Labor the green light to pass laws neutralizing the construction union’s resistance to external administration .
The Greens called the bill a “serious threat to the rule of law,” but the federal government “totally” disagrees with that assessment.
This decision comes after the CFMEU over allegations of corruption and links to organized crime figures. The union has to pressure from the federal government to place it under administration.
What would the new laws do?
The legislation would give the relevant minister the power to appoint an administrator.
The opposition agreed to pass the bill after securing several amendments, including a minimum three-year administration period for the union and its branches, which only the administrator could end early.
The period of administration can last up to five years under the law and officials found guilty of crimes would be banned for life and would not be able to become bargaining agents with other registered organizations without holding a certificate of aptitude.
Those who attempt to thwart or obstruct the process face heavy fines and up to two years in prison.
The administrator assured the opposition that the union would not spend money on political campaigns or make donations during the takeover.
Workplace Relations Minister Murray Watt said an administration plan would be put in place “over the next week”.
The union could challenge the bill in court.
What was the reaction?
The union criticized the law, saying it deprives members of the right to a fair process.
The criminal allegations were taken seriously and people were dismissed pending legal proceedings, but they were not tested in court, CFMEU national secretary Zach Smith said.
“Until the allegations have been tested by the justice system, individuals and organizations are entitled to a fair process,” he said.
Greens leader Adam Bandt said if the opposition wins the next federal election it could bring in former prime minister Tony Abbott to administer the union.
“What Labor and the anti-worker Liberals have done is rush through legislation that is an unprecedented attack on the rule of law,” he told reporters in Canberra.
“I don’t agree at all with the idea that this is an attack on construction workers, quite the contrary,” he told ABC News on Tuesday.
“Construction workers deserve to have a strong and effective union, but it must be a clean union.”
Business and construction groups also welcomed the move.
What happens next?
The bill was passed by the Senate on Monday and is expected to be considered in the lower house as early as Tuesday.
