The CFMEU has been unsuccessful in its attempt to reverse the Albanese government’s decision to place the union’s construction division into administration, as ruled by the High Court. This governmental intervention followed allegations of infiltration by bikie and organised crime figures, along with serious misconduct within the union.
John Setka, the CFMEU’s controversial leader, vehemently denied the claims but announced his resignation to mitigate intense media scrutiny. Two former CFMEU officials, Michael Ravbar and William Lowth, contested the legislation that ousted the union’s leadership and appointed administrator Mark Irving KC, arguing that the law violated their implied freedom of political communication. However, the High Court dismissed all claims.
Despite an investigation by Victoria Police into allegations against Setka, no charges were filed regarding his visits to government work sites. Administrators indicated ongoing issues with criminal infiltration in the construction sector, with Irving’s initial report highlighting substantial remaining challenges. Former workplace relations minister Murray Watt praised Irving and his team for exposing “unacceptable conduct” and subsequently referred additional allegations to police for further investigation.
The government condemned shocking footage of violence linked to bikie-affiliated health and safety representatives. In a shift of roles, CFMEU national secretary Zach Smith announced he would step away from overarching responsibilities while remaining head of the Victorian branch. An interim report by lawyer Geoffrey Watson SC described prevalent “lawlessness” within the union’s construction division, recommending further investigations into violent or abusive conduct by officials. All recommendations were accepted by the administrator.
The legislation stipulates that the CFMEU could remain under administration for up to five years, with significant penalties for officials who hinder the process. Industrial Relations Minister Amanda Rishworth reaffirmed the government’s stance against criminal behaviour and corruption in the construction industry, stressing the need to eradicate bad actors from the sector. She emphasised that construction workers deserve a union free from illegal activities and assured that the administrator would carry on with essential reforms to rectify the CFMEU’s construction arm.
Master Builders Australia chief executive Denita Wawn noted that the court’s decision provided necessary clarity for both the construction industry and the administrator, facilitating efforts to rectify the union’s issues.