Murray Watt (Queensland, Australian Labor Party, Minister for Employment and Workplace Relations) Share this | Hansard source

I table the explanatory memorandum relating to the Fair Work (Registered Organisations) Amendment (Administration) Bill 2024 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.

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.

I intervened to support the application on behalf of the government.

For some time now, the government has made clear that, if the matter was not resolved before parliament returned, we would introduce legislation to facilitate administration, if it was determined to be in the public interest.

It is the government's firm view that enabling administration, not deregistration, is the strongest action to take in these circumstances.

Deregistration of the Construction and General Division would not stop the union from participating in a range of industrial activities, like bargaining. Placing the Construction and General Division into administration would maintain the regulation and additional oversight that applies to registered organisations and ensure the division acts in the best interests of its members.

This bill amends the Fair Work (Registered Organisations) Act 2009 to allow the minister to determine a scheme of administration for the Construction and General Division, if satisfied it is in the public interest to do so.

The bill contains a non-exhaustive list of the matters that may be included in a 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 be targeted towards the Construction and General Division of the CFMEU, and would be time limited. It will not apply to other unions or to other divisions of the CFMEU.

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.

Under a scheme of administration, the administrator would have control of the property and affairs of the Construction and General Division and its branches. They would have the power to:

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.

Penalties would also apply to persons involved in breaching the anti-avoidance provisions, for example where a person aids or abets a contravention by another person.

Anti-avoidance civil penalties would apply retrospectively from 17 July 2024. The criminal sanctions apply from the commencement of the bill.

We want to ensure any administration that may be determined is undertaken fairly and with the appropriate level of scrutiny. Safeguards for the administration would include:

They would also include:

The administrator would be immune from civil proceedings if they are acting in good faith in the exercise of their functions and powers.

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 an effective mechanism to enable the Construction and General Division of the CFMEU to be placed into administration if it is determined to be in the public interest. The government will continue to support strong action to address these issues.