NSW to take action to appoint independent administrator for the CFMEU Construction and General Division

CFMEU, NSW,

August 5, 2024

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The NSW Government through the Minister for Industrial Relations has filed an application in the Industrial Court seeking orders for the appointment of an administrator for the Construction, Forestry, Mining and Energy Union (CFMEU) NSW Branch, Construction and General Division.

The NSW Government through the Minister for Industrial Relations has today filed an application in the Industrial Court seeking orders for the appointment of an administrator for the Construction, Forestry, Mining and Energy Union (CFMEU) NSW Branch, Construction and General Division.

To remove any doubt about the validity of the appointment and powers of the administrator, the NSW Government will this week introduce a bill to Parliament amend the Industrial Relations Act 1996 to provide for the appointment of an administrator for the CFMEU NSW Branch, Construction and General Division.

This is necessary action and consistent with the application made by the General Manager of the Fair Work Commission last week.

The CFMEU (NSW Branch) has dual registration under both the federal and NSW industrial relations systems, as a result legal and legislative action is needed both from the Commonwealth and NSW Government in each system to ensure the effective administration of the union.

The NSW Government has made absolutely clear that there is no tolerance for criminal or corrupt behaviour in the building industry, in unions or anywhere for that matter.

The appointment of an administrator will ensure swift changes to the organisation as well as the appropriate and efficient management of the CFMEU’s funds and assets in the interests of its members and the industry.

The commencement of proceedings and the introduction of the NSW Bill to Parliament will reflect steps being taken by the Australian Government.

This includes the commencement of proceedings by the General Manager of the Fair Work Commission to put the CFMEU into administration as well as the proposed introduction of a Bill to Federal Parliament.

The NSW Bill will ensure that the administrator will be authorised to administer the CFMEU Construction and General Division in NSW, perform the functions of State Secretary and exercise all the functions of the Divisional Council under the CFMEU rules.

The provisions in the Bill will also provide for the ability to suspend office holders without remuneration, during the administrator’s appointment.

Following the passage of the Bill, the NSW Government will work alongside the Australian Government to ensure the administration scheme aligns with steps being taken in relation to the CFMEU national branch.

The administrator appointment will be for a period of up to five years.

This follows a number of steps already taken by the NSW Government to protect the integrity of the construction sector and unions in NSW including:

• Moving to suspend the NSW CFMEU Construction and General Division’s affiliation to the NSW Labor Party, to stop any donations or affiliation fees, and to appoint an independent administrator to the branch.
• Asking the Commonwealth Government to review Enterprise Bargaining Agreements in NSW which the CFMEU is party to.
• Referring all allegations of inappropriate behaviour on NSW construction sites to the NSW Government’s Construction Compliance Unit.

Premier Chris Minns said:

“The NSW Government and NSW Labor have taken a series of strong actions to clean up the construction division of the CFMEU.

“We must take the necessary action to protect honest and hardworking construction workers and union members. It is necessary to protect the integrity of the construction sector and unions in NSW.

Industrial Relations Minister Sophie Cotsis said:

“There is absolutely no tolerance for criminal or corrupt behaviour in the construction industry or unions, or anywhere in our state.

“We will work together with the federal government to ensure we are setting the CFMEU on the right path to once again effectively represent those industries’ workers in our state.”

Source: NSW Government

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