Key PointsThe government has agreed to a Coalition demand that CFMEU be put into a minimum three-year administration.A final agreement has be reached and includes a ban on political donations.The bill is now set to pass parliament.
The federal government has secured a compromise deal with the Opposition to get legislation through parliament to force the Construction, Forestry and Maritime Employees Union (CFMEU) into administration.
Following negotiations with the Opposition, there will be a minimum three-year administration period for the construction union and its branches and criminal officials can be banned for life.
The officials wouldn’t be able to become a bargaining agent at another organisation without a fit and proper person certificate from the Fair Work Commission to stop them using a backdoor to get onto construction sites.
The administration period can last up to five years and will need the recommendation of the administrator to end it.
The scheme’s drafting was “well advanced” with hopes it could be enacted within a week, Workplace Relations Minister Murray Watt said.
The CFMEU over allegations of corruption and links to organised crime figures.
Watt admonished the Opposition for the delay.
“Let’s just hope that no assets have been shifted within the CFMEU or other action taken over the last few days as a result of the Coalition not agreeing to this last week,” he said.
Bill includes a ban on political donations
The Opposition had held out support as it called for an explicit donation and political campaigning ban during administration outlined in the law, and for the administrator to front a Senate committee.
Opposition leader Peter Dutton argued amendments were needed because on the construction, which was rejected by the government who pointed to the action taken in the legislation.
The Opposition has agreed to pass the bill after Labor provided a letter from the administrator saying no money would be spent on political campaigning or donations and for the Fair Work Commission head Murray Furlong to front the committee instead.
The government has raised concerns a legislated donations ban could be challenged in the High Court.
Opposition workplace relations spokeswoman Michaelia Cash said she believed her amendment would have overcome any constitutional issues but was prepared to accept the letter’s assurance.
“That is possibly the most significant part of what we wanted,” she told reporters in Canberra on Monday.
What happens next?
The bill will ticked off by the government-controlled lower house as early as Tuesday.
The construction division won’t immediately be placed into administration, with the minister needing to jump through some regulatory hoops.
Workplace Relations Minister Murray Watt said the industry needed an effective union to represent workers.
“This is hard, dangerous work in construction,” he told ABC radio.
“But they need one that’s clean and free from the constant allegations of organised crime, bikies, violence on site that we see surrounding this union.”
Building groups have been lobbying both sides to pass the legislation, arguing each day without external oversight is another day of delays at affected construction sites.
“I hope for your sake that the delay of the weekend … has not led to money being transferred that we then find out about,” senior minister Penny Wong told the opposition benches in the Senate chamber on Monday.
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