CCIWA has welcomed a High Court decision today to reject a challenge to the administration of the CFMEU, saying it would allow the vital process of cleaning up the union to continue.
The decision in the case of Ravbar & Anor v. Commonwealth of Australia & Ors found that the Federal Government’s move last August to put the Construction & General Division of the CFMEU under administration via changes to the Fair Work Act was valid.
The CFMEU challenged the Government, claiming it did not have the authority to take over the union and remove 270 union officers following allegations of bullying, corruption, and criminal infiltration.
The union said the takeover was unconstitutional, infringed on the implied freedom of political communication, and was an acquisition of property on other than just terms.
However, in a unanimous decision, the High Court disagreed, allowing the administration to continue.
CCIWA’s Dr Cock said the ruling “is a win for workers and businesses in the building and construction industry, which employs more than 140,000 Western Australian workers”.
“Today’s decision provides certainty and clarity for the medium-term,” he said.
He called on the administrators to ensure the conduct on the WA branch of the CFMEU was properly examined as part of the process.
“This is not simply an ‘east coast’ problem and there is strong evidence that the problems with the CFMEU do not stop at the Nullarbor,” he said.
Widespread allegations of corruption
In 2021, the WA branch of the CFMEU and its officials had penalties totalling $1.3 million for contraventions of industrial laws over the previous five years.
“Combined with widespread allegations of corruption and links to organised crime within the CFMEU, it is vital that the administrator takes firm action to ensure that the public and industry can have confidence into the future,” Dr Cock said.
Australian Chamber of Commerce and Industry CEO Andrew McKellar said while the High Court decision would provide the sector with much needed certainty, there was much more that needed to be done to deliver real outcomes.
He also said history showed that unless permanent and lasting changes were made, there was a very real risk the sector would just return to the same old bad days sooner rather than later.
“Now that the High Court challenge has been rejected on all accounts, the public expects firm action by the administrator so that confidence in the building and construction industry is restored,” he said.
ACCI has called on the Government to re-instate an effective industry watchdog, as well as a proper judicial inquiry or equivalent with the powers to compel witnesses to come forward and give evidence.
It has also called for a strengthened ‘Fit and Proper Person’ Test for Right of Entry Permits to ensure appropriate standards of conduct in workplaces.
“Finally, deregistration must remain on the table as an option of dealing with the CFMEU,” McKellar said.
If you require any assistance on union or other related matters, contact CCIWA’s Construction and Mining Services team via [email protected].
