Appointing an administrator to oversee the embattled CFMEU should not be hurried, a federal minister says, amid concerns the move would not be enough to police the sector.
Subscribe now for unlimited access.
or signup to continue reading
The Fair Work Commission is taking action to place the union's construction division into administration, after allegations it has been infiltrated by bikies and criminals and that officials had taken kickbacks.
While an administrator had yet to be appointed, due process was needed to make sure it would be effective, Government Services Minister Bill Shorten said.
"This is a serious job, and you've got to actually apply to it, you've got to go through a legal process or apply to put an administrator in," Mr Shorten told reporters in Melbourne on Tuesday.
"It's not just click your fingers and you know, it's all done, you've got processes to follow.
"If we rushed something and then there was a legal loophole, why would you throw away the case because you've rushed it?"
But former Australian Building and Construction Commission head Nigel Hadkgiss said establishing an administrator was not enough.
"I have no confidence anything realistic (or) meaningful will be accomplished by an administrator," said Mr Hadgkiss, who led the watchdog between 2016 and 2017, in an interview with Sky News.
"We need a strong body, with sufficient powers to tackle a serious problem, that's not just affecting the building industry as a result, it's affecting the whole of the economy."
The most recent incarnation of the Australian Building and Construction Commission was set up by the former federal coalition government in 2016, before it was abolished by Labor in 2023.
Federal Labor and some state branches have moved to cut affiliations with the CFMEU.
Prime Minister Anthony Albanese said calls to deregister the union or re-establish the construction watchdog would make the situation worse.
The remarks came as Victoria's opposition unveiled plans to introduce laws to state parliament to keep bikies and organised criminals out of the state's major construction projects.
The laws would also bar anyone with criminal convictions for organised crime or consorting from being employed in the infrastructure projects.
The alleged wrongdoings involving the union's Victorian branch had blown out costs on large builds, state opposition leader John Pesutto said.
"Bikies and organised criminals have no place on taxpayer funded construction sites and our new laws will keep them out for good," he said.
"For a decade, Labor has turned a blind-eye to worsening misconduct and organised criminal infiltration of major projects for which every Victorian is paying the price."
Meanwhile, Victorian Planning Minister Sonya Kilkenny revealed on Tuesday she had received an email in 2023 with allegations about CFMEU conduct on a local project.
She referred the matter internally but didn't raise it with Premier Jacinta Allan or her predecessor Daniel Andrews.
"That matter is now being dealt with by the Fair Work Commission," Ms Kilkenny told reporters in Melbourne.
She repeatedly declined to provide further details.
Ms Allan last Tuesday admitted it took too long to reply to an Indigenous labour-hire firm's 2022 letter detailing allegations of CFMEU officials threatening violence and banning non-aligned firms from government-funded projects.
The NSW Liberal opposition has also hit out at the CFMEU, writing to the state's corruption watchdog asking it to probe the union's activities.
The steps taken against the union by the Labor government would address concerns it was leading to infrastructure projects going over budget, Federal Housing Minister Julie Collins said.
"We're getting on with the job of building homes, we want to see value for money for the Australian taxpayer, but we need homes of every type, right across the country," she said.
Australian Associated Press
