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Government will force CFMEU to accept administrator

Court action is under way to appoint an independent administrator to divisions of the CFMEU. (Joel Carrett/AAP PHOTOS)

By Kat Wong and Caitlin Powell in Canberra

The federal government says it will steamroll the CFMEU to accept an independent administrator if it ignores a court application.

Minister for Workplace Relations Murray Watt is backing the legal submission by the Fair Work Commission (FWC), saying this is “the strongest action ever taken by a government against an Australian union or employer group”.

Senator Watt made the statement on Friday after an application was filed by the commission to appoint barrister Mark Irving as independent administrator to the CFMEU’s embattled general and construction divisions.

Mr Irving has been a member of the Victorian Bar for almost three decades and has experience acting on union and employer matters.

Mr Watt said that in the role of administrator, Mr Irving would be able to “terminate the employment” of those in CFMEU who have “done the wrong thing”.

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

“Enough is enough.”

He said if the CFMEU did not consent to the application for administration, “the government will introduce legislation to enable the establishment of an appropriate scheme of administration as swiftly and effectively as possible”.

Senator Watt said the law would not weaken conditions for workers but would ensure the union looked after its members.

“It would contain serious penalties for undermining or avoiding the scheme of administration,” he said.

FWC in July revealed it would take action after accusations of criminal misconduct and bikie links were levelled at the union’s construction arm.

Labor’s national executive has already severed ties with the union and will no longer accept political donations or affiliation fees from the troubled construction arm.

The CFMEU has been contacted by AAP for comment on Senator Watt’s statement.

Master Builders Australia welcomed the government’s support for the court application although it was disappointed by the exclusion of the ACT and WA in the application.

In a statement, the association said more needed to be done for “lasting change” including stronger protections for people who gave evidence or information to support investigations.

It also called for the federal government to establish a centralised body that would co-ordinate various inquiries.

This was echoed by Business Council chief executive Bran Black who said the serious nature of the allegations meant an overarching inquiry was necessary.

“The CFMEU allegations are likely to be the tip of the iceberg and we need a full Royal Commission now to uncover how deep the rot goes,” he said.

“Without full public transparency, how can the Australian public have faith these serious issues of alleged corruption and crime won’t happen again?”

Mr Black also shared his disappointment that the Western Australia and the Australian Capital Territory branches have been excluded from the investigation.

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