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ACTU suspends construction division of CFMEU as steps taken to appoint independent administrator to clean up union
ACTU Secretary Sally McManus says she can count on one hand those who opposed the peak body's suspension of the CFMEU. (AAP Image: Joel Carrett)
An independent administrator will be appointed to overhaul the CFMEU following allegations the embattled union has been infiltrated by underworld figures.
Workplace Relations Minister Tony Burke revealed the government would support the appointment, vowing to introduce legislation to clean up the organisation if the union opposed the move.
"I do believe these actions are best taken by the regulator, but any action to appoint an administrator will be supported by me as minister," he said on Wednesday.
But the minister stopped short of taking steps to deregister the union, saying it would allow it to operate without regulation.
"If we simply went down the deregistration path, we would have an organisation still capable of bargaining and doing the entire business model that we have been seeing reported over recent days with no layer of regulation or additional oversight that applies to registered organisations," he said.
Victorian union boss John Setka quit ahead of the revelations. After, the state branch was placed into administration and New South Wales Premier Chris Minns moved to eject the CFMEU — one of the most powerful factions within the Labor left — from the party.
CFMEU secretary for Queensland and the Northern Territory Michael Ravbar said the government should investigate major contractors instead of the union.
"I will defend the integrity of the CFMEU every day of the week. If Albanese or any other politician want to properly investigate criminality, they should start at the top, not the bottom," Mr Ravbar said in a statement posted to Facebook on Wednesday afternoon.
"The CFMEU has repeatedly stated it will cooperate with any criminal investigation, as we know the real crooks in this industry are the civil contractors and their cronies.
"The sad reality is that it's the major civil companies that have brought the unsavoury elements on government-funded projects, and yet Albanese knows that a thorough investigation will put Labor governments in a world of pain.
"Albanese is selective about his interest in criminal associations and willingly ignorant about our industry."
In his statement, Mr Ravbar claimed "buffoon breakfast show hosts and talkback radio shock jocks" pressured the PM into having "panicked and soiled himself over some unproven allegations".
"The CFMEU is here to stay," Mr Ravbar insisted.
"We will defend each other to the ends of the earth."
Loading...The CFMEU's national secretary Zach Smith declared on Tuesday that external administration of the union wasn't necessary and it could investigate the allegations internally.
In a statement, Fair Work Commission general manager Murray Furlong said he is examining if there are conflict of interest issues arising from Mr Smith "assuming multiple roles at the same time".
"I am deeply concerned about the alleged conduct and commentary that organised crime has infiltrated several state branches of the division, including that it appears to be embedded and ongoing," he said.
Mr Furlong is seeking advice on making an application to the Federal Court to appoint the administrator to weed out the bad actors and have the capacity to look at funding decisions.
Prime Minister Anthony Albanese said the administrator would take charge of the east coast branches of the union, including South Australia and Tasmania.
He insisted the government has acted "acted swiftly".
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Administrator to be appointed to CFMEU
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Union movement, Labor under pressure to act
The Australia Council of Trade Unions suspended the construction and general division of the CFMEU from the peak body.
It also called on the CFMEU leadership, who were present at the meeting that lasted over three hours, to support the appointment of an independent administrator.
Of the 52 votes, secretary Sally McManus said she could "count on one hand" the number of votes against the ACTU's resolution.
The suspension will last until the CFMEU can demonstrate it is "clean" and free of any criminal elements," Ms McManus said.
Labor and the broader union movement have been under pressure in recent days to explain what they knew about the CFMEU's alleged links to organised crime gangs that were revealed at the weekend.
Loading...Mr Burke denied any knowledge of the links, saying this was not something he had previously been briefed on.
"The organised crime issue – it was published as an exclusive – that's because this was new information," he said.
The Fair Work Ombudsman will undertake a targeted review of all enterprise agreements made by the Victorian branch of the construction division of the CFMEU that apply to Victorian big build projects.
Mr Burke has also written to Australian Federal Police Commissioner Reece Kershaw to request the AFP investigate the allegations and "work cooperatively" with state police.
But the Master Builders Australia said the government should also consider ordering an Australian Competition and Consumer Commission investigation.
Labor figures to meet to consider cutting ties to CFMEU
Labor's national executive will meet on Thursday to discuss banning donations from the Victorian branch of the construction division of the CFMEU moving forward.
This follows requests from Victoria, New South Wales, South Australia and Tasmania premiers to suspend the construction division of CFMEU's affiliation with the state parties.
Opposition Leader Peter Dutton demanded the ALP stop accepting donations and that any funds still held by the party should be immediately quarantined
The Victoria, NSW and Queensland governments have said they will stop taking donations from the CFMEU.
However, Mr Burke said handing back donations would be "absurd" but said it was a decision for the national executive.
"The concept of handing money back is one of the most astonishing and absurd ideas I've seen. Are the Liberal Party seriously suggesting that at this moment the action of the government should be that we hand money to the CFMEU?" Mr Burke said.
"That's what they are arguing and I just find it … absurd."