As many as eleven staff and 270 unpaid elected officials of Australia’s construction union have been removed from their positions after the union was formally placed into administration last week.

On Friday, Attorney General Mark Dreyfus formally placed the Construction and General Division of the Construction, Forestry and Maritime Employees Unions (CFMEU) into administration.

The administration covers all of the union’s Construction and General Division and all of the Division’s branches – including the branches in Western Australia and the ACT.

Barrister Mark Irving KC has been appointed as administrator to run the union.

“I have decided it is in the public interest, having regard to the Parliament’s intention in enacting the Fair Work (Registered Organisations) Act 2009, to place the Construction and General Division of the Construction, Forestry and Maritime Employees Union and all of its branches – including the WA and ACT branches – into administration,” Dreyfus said in a statement on Friday.

The placing of the union into administration followed the passing of legislation earlier last week that enabled the union to be placed into administration.

That legislation followed media reports containing allegations of corruption, criminal conduct, bullying and harassment and general disregard for workplace laws.

As a result of the administration, media reports on Friday indicated that 11 senior union officials across the union’s NSW, Victoria/Tasmania and Queensland branches have lost their jobs.

A further 270 elected union officials have reportedly been removed from unpaid positions.

In a statement released on Friday, the union said it was shocked to learn of the removal of the officials.

“The CFMEU is shocked and appalled to learn through the media, rather than direct communications from the Federal Government or the Administrator, that 270 officials have been terminated,” the union said in a statement.

“These officials are hard-working, committed trade union leaders, whose only motivation was to further the conditions of thousands of CFMEU members. They are proud of having achieved this.

“The State and Federal Government’s actions have done nothing more than attack the rights and conditions of thousands of CFMEU members and their families.

“This entire farce was born through a baseless media and government stitch up. The lack of due process and basic democratic rights from this Government is disgusting and simply un-Australian.”

However, building industry lobby groups have welcomed the move to formally place the union into administration.

In a statement, Master Builders Australia CEO Denita Wawn said that the move represented a first step in restoring law and order on building sites.

Wawn called for further action, including the re-establishment of a strong workplace regulator for the building and construction industry – similar to the former Australian Building and Construction Commission.

“Master Builders Australia welcomes the swift action of Government to appoint an external administrator to all branches of the CFMEU Construction and General Division,” Wawn said.

“The appointment occurred within a day of the Fair Work (Registered Organisations) Amendment (Administration) Bill 2024 received royal assent.

“This has been a long time coming and is a critical first step in getting the building and construction industry on the road to meaningful cultural change.

“Master Builders applauds the bipartisanship approach at federal and state levels to clear the way for the administrator, Mark Irving KC, to hit the ground running.

“This culture has existed for decades and has stifled productivity and increased the cost of construction at the expense of the community, taxpayers, jobs and small business.

“We all, whether as employers, workers or union members, deserve to work in an industry that is lawful, safe and free from corruption, coercion, bullying and intimidation.

“Everyone in building and construction recognises the important role that unions play in workplaces but it’s clear some within the CFMEU have lost their way.

“History shows that the only way to comprehensively crack down on criminality and corruption is to tackle a poor culture underpinned by disregard for the rule of law.

“The relationship between employers and unions should be a constructive and mutually respective one and we hope this is the first step to achieving that goal.

“Master Builders urges all industry participants to come forward to report any conduct or potentially unlawful activity involving the CFMEU to the Fair Work Commission.

“If we don’t learn from history, we will be doomed to repeat it. Permanent and lasting change requires long-term regulatory reform.

“The Federal Government must now move to establish a dedicated building and construction industry watchdog with real teeth.

“Australians expect a thriving and safe building and construction industry to deliver the roads, hospitals, schools and most importantly housing that they are crying out for.

“Master Builders will continue to work collaboratively with both the Government and Opposition to achieve a strong, safe, and prosperous sector.”

 

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