CCF QLD CEO Damian Long warns if changes are not implemented, the industry will be here again in 10 years
The Construction, Forestry and Maritime Employees Union (CFMEU) is now in administration.
Fair Work Commissioner Murray Furlong had started the process to implement external administration under s.323 of the Fair Work (Registered Organisations) Act 2009, (FW RO Act), but the Federal Parliament recently passed amendments granting it power to appoint an administrator.
In addition, the new laws allow the Minister for Employment and Workplace Relations, Senator Murray Watt, to determine a scheme for administration of the Construction and General Division and its branches of the CFMEU.
The scheme listed the personnel of the CFMEU who would be terminated and a range of requirements and powers of the administrator.
What this means is that the management of the union has been replaced by external administrators to run the union for the next three to five years. The operation of the union, which includes all its rights, will continue.
This includes representing their members’ interests and acting in accordance with any instrument of law.
This will include agreement bargaining, workplace health and safety issues etc. I expect the administrators will robustly represent their members’ rights.
The main change is it will be done under different management. All other parts of the union are not affected.
Protests
The current protests are being conducted by ex-CFMEU employees, some current members and other unions.
Whilst I understand the solidarity amongst the unions, the conduct of the CFMEU sets them apart from their counterparts.
Other unions rigorously represent their members without the alleged threats of intimidation, bullying, coercion and violence.
This is not new behaviour, and previous Royal Commissions have highlighted segments of illegal and questionable behaviour.
It is surprising that a Labor government has acted, but this highlights that this is considered a serious issue above party politics and one that must be dealt with. The action was supported by the federal opposition.
Similar action has been taken by states, which have state industrial registration systems that mirror the federal legislation and scheme for administration.
This will ensure the administrator can act equally across all registered entities.
Key reasons
Administration will be in place for three to five years. There are a few key reasons why we are at this point.
It is no coincidence that the alleged conduct of the CFMEU has escalated since the abolition of the Australian Building and Construction Commission (ABCC) and Building Code, as well as changes to the Fair Work Act 2009 and the Building and Construction Industry (Improving Productivity) Act 2017.
In addition, state procurement policies – such as the Best Practice Industry Condition (BPIC) – have also provided a platform for demarcation opportunities for the union.
As the branches of the CFMEU are released from external administration over the next three to five years, there must be a legal framework that is put in place which prevents the rise of the environment we are experiencing today.
It is imperative that the industry is separately regulated with an independent regulator, similar to other industries such as banking, superannuation and finance.
The new body must be independent and regulate all stakeholders in the building and construction industry. It must be transparent, have investigative powers and legal backing to discourage poor behaviour.
The Fair Work Act must be amended to ensure that freedom of association is fully protected.
A higher level needs to be set for the test of fit and proper people to run registered organisations.
Union agreements must ensure that the appropriate eligible union represents the workforce.
Vision
Hopefully our legislators have the vision to draft laws which survive governments of all colours, to provide a well-paid industry that delivers infrastructure productively, safely, and is not a detriment to the mental health of participants and stakeholders.
We need an industry which is fun and attractive to everyone. If not, we will be back to the future in about ten years.
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