Mr Tony Burke (Watson, Australian Labor Party, Leader of the House) Share this | Hansard source

I present the revised explanatory memorandum to this bill and move:

That this bill be now read a second time.

Since July 2024, serious allegations have come to light about the conduct of some members and associates of the Construction and General Division of the Construction, Forestry and Maritime Employees Union (CFMEU).

The Australian government takes these allegations seriously. There is no place for criminality or corruption in the construction industry, and bullying, thuggery, and intimidation are unacceptable in any workplace.

On 2 August 2024, the General Manager of the Fair Work Commission applied to the Federal Court of Australia to have an independent administrator appointed to the Construction and General Division and the Victoria-Tasmania, New South Wales, Queensland-Northern Territory, and South Australian divisional branches.

The minister has intervened to support the application on behalf of the government.

The government made it clear that if the matter was not resolved before parliament returned, we would introduce legislation to facilitate administration.

This is the strongest action available in these circumstances.

The bill amends the Fair Work (Registered Organisations) Actto provide a clear pathway for the Construction and General Division of the CFMEU to be placed under administration.

The bill will allow the minister to determine a scheme of administration for the division if satisfied it is in the public interest to do so.

The bill contains a list of the matters that must be included in the scheme, such as the suspension or removal of officers, taking disciplinary action, and making changes to the Construction and General Division's rules.

A scheme of administration would not apply to any division or union other than the Construction and General Division of the CFMEU and would be time limited.

The bill includes strong powers for the administrator and would allow them to take action necessary to restore the effective management and operation of the Construction and General Division.

This would enable the administrator to take all necessary action to manage the affairs of the division in the interests of members.

Current and former officers and employees would be required to assist the administrator, such as by producing requested documents. Penalties would apply for noncompliance with this requirement.

The administrator would also be required to cooperate with inquiries undertaken by a law enforcement or regulatory agency.

The bill includes strong anti-avoidance provisions to prevent people from undermining an administration determined by the minister. Contravening these provisions would attract civil penalties and, where avoidance behaviour is deliberate, criminal penalties.

Anti-avoidance civil penalties would apply retrospectively. Criminal sanctions apply from the commencement of the bill.

Amendments made by the Senate modify the operation of the bill in the following ways:

The allegations about the behaviour of some Construction and General Division members and associates are serious, and unlawful behaviour in any workplace is unacceptable. This bill provides a strong and effective mechanism to place the Construction and General Division of the CFMEU into administration to address these allegations.

Working in construction is hard, dangerous work, and those workers need a strong, clean union to represent them.

I acknowledge the constructive contribution of the Senate crossbench in proposing sensible and practical amendments to strengthen the bill. I also acknowledge that amendments have been put forward by the member for Wentworth and the member for Warringah. The government supports the intent of both and are confident they have been adequately addressed through the Senate amendments to the bill.

I commend the bill to the House.

Leave granted for second reading debate to continue immediately.

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