Government places construction branch of CFMEU under guardianship after approval of new laws

The construction and general layout of the CFMEU were immediately placed under administration by the federal government after allegations were made about links to criminal gangs. These allegations led to the passing of new laws.

Attorney General Mark Dreyfus made the announcement Friday morning, saying it was “in the public interest” to take an extraordinary stance against the union, following alleged reports of endemic corruption and ties to criminal gangs in the construction industry.

Victorian lawyer Mark Irving KC has been appointed administrator after being appointed by the Fair Work Commission earlier this month.

“The CFMEU Construction and General Department’s management plan comes into effect immediately,” he said.

Friday’s move comes after the Labor Party and the Coalition reached a bipartisan agreement to pass legislation needed to place the union under administration.

The proposal was passed by the Senate on Monday by a vote of 39 to 10, after the government gave in to coalition demands to extend the minimum term of office to three years, plus conditions for the governor to report to parliament every six months and attend Senate budget meetings.

While there will be no legal ban on political donations by the CFMEU during its tenure, coalition shop floor spokeswoman Michaelia Cash said on Monday she had received assurances from Mr Watt that safeguards would be put in place.

The CFMEU has strongly protested the new law, with national secretary Zach Smith saying earlier this week that the union was taking allegations of criminal activity seriously and that officers were being fired or dismissed.

But, he said, the allegations had not yet been tested in court.

“Until the allegations are tested by the legal system, people and organizations have the right to a fair trial,” he said.

There’s more to come