Murray Watt (Queensland, Australian Labor Party, Minister for Employment and Workplace Relations) Share this | Link to 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.

Claire Chandler (Tasmania, Liberal Party, Shadow Assistant Minister for Foreign Affairs) Share this | Link to this | Hansard source

In accordance with standing order 111, further consideration of this bill is now adjourned to 18 November 2024.

Michaelia Cash (WA, Liberal Party, Shadow Minister for Employment and Workplace Relations) Share this | Link to this | Hansard source

I seek leave to make a short statement of no more than five minutes.

Leave granted.

I have to say, I don't know if I've ever heard such an ironic speech in my life. Let us be very, very clear what has just been introduced. We are here today because Prime Minister Albanese made the choice, a conscious choice, based on money flowing from the union movement, the CFMEU, to the Australian Labor Party to change workplace laws in Australia to directly benefit an organisation which has donated $6.2 million to the Australian Labor Party since Mr Albanese became leader—wow! You have got to be kidding me.

When Prime Minister Albanese abolished the Australian Building and Construction Commission, mate John Setka and the CFMEU could not have been happier, and today it's all laid bare because I have seen the legislation and you can currently drive a truck through it. We all know that Labor is not only donated to by the CFMEU, not just influenced by the CFMEU, but this legislation shows they are owned by the CFMEU. Labor is not sincere when it now pretends to be concerned by the conduct, the corruption, the fraud, the misogyny and the bullying intimidation and thuggery within this union. Only now, after 20 years—that's right, two decades—of thuggery, law breaking and corruption, is the Labor Party pretending to care about the conduct of Australia's most corrupt union, which is also its biggest donor.

Senator Watt went on TV yesterday and spoke of the CFMEU's years—I repeat, years—of thuggery and law breaking, yet for all those years Senator Watt was a key protagonist in the protection racket. In fact, not only was he a key protagonist but he also went as far as defending them, and, in fact, he was the minister who championed the legalisation, quite frankly, of this corrupt behaviour when Labor abolished the Australian Building and Construction Commission. That's right—bullying, thuggery, fraud and misogyny in the building industry ran rife because of the actions of people like Senator Watt.

Senator Watt might think people believed him when he said yesterday, 'It does not matter who has done the wrong thing. They should have the book thrown at them.' Well, guess what? Minister Watt and his government didn't throw the book at the CFMEU; they burnt the book. They abolished the building industry watchdog. They reduced penalties for the CFMEU law breaking. This is the interesting bit: they claim they've only just become aware. Well, the last time I checked, there was Federal Court decision after Federal Court decision after Federal Court decision after Federal Court decision, and who could forget what the High Court of Australia said: the 'most recidivist' union in this country and that they see fines as the mere 'cost of doing business'. I mean, you have got to be kidding me.

The Australian people are not mugs. They know when they are being blatantly misled, and for the Australian Labor Party and for the Prime Minister to actually stand up and treat Australians like mugs by saying they've only just become aware of this conduct, when there have been no fewer than two royal commissions which exposed the criminality of this CFMEU, again just shows you: Labor were bought lock, stock and barrel by the CFMEU.

Where was Senator Watt in the face of the overwhelming evidence that Luke Collier and John Setka were bashing women? That was not even enough. He still dared fight the coalition every step of the way when they were trying to put in place legislation to clean up the industry. Cast your mind back to Senate estimates. Go and have a look at the videos of Senator Watt attacking the commissioner of the ABCC when they were laying out all of the evidence, when Senator Watt was saying it wasn't happening. Well, guess what? It was. Minister Watt could not have been happier when the ABCC was abolished. In fact, I recall he was smiling like a Cheshire cat. Unfortunately, now all Australians are paying the price for the actions of the Labor government.