CFMEU loses High Court bid to avoid administration

Kicked-out officials of the Construction, Forestry and Maritime Employees Union (CFMEU) have had their bid to avoid administration rejected by the High Court after six months of proceedings.

Back in August of last year, it was announced by then-attorney-general Mark Dreyfus that “it is in the public interest … 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”.

After allegations of corruption, violence, intimidation, and blatant thuggery were exposed by the media, Prime Minister Anthony Albanese and the Labor government were urged to take a stand – placing the union into administration.

This decision by the Labor government sent shockwaves through the controversial union, with huge numbers of members quickly taking to the streets in protest of what they deemed as anti-union legislation.

On the legal front, ousted CFMEU representatives who were at the upper echelon of union leadership immediately attempted to push back on Labor’s decision, hiring a collection of prolific barristers to represent them in a High Court challenge against the move to administration.

The “legal dream team” appointed by the CFMEU to handle its challenge included Bret Walker SC, who has previously represented Google, Elon Musk, and Chinese billionaire Huang Xiangmo.

However, after six months of proceedings, the High Court today (18 June) moved to reject the ousted CFMEU representative’s challenge – dismissing all grounds.

The court found that the move to place the union in administration did not breach separation of powers, infringe the implied freedom of political communication, or take union property without “just terms” compensation.

As previously reported by HR Leader, during the proceedings, Mark Irving KC – who was named as the administrator of the CFMEU – raised concerns about the drawn-out High Court decision hindering more whistleblowers from coming forward.

According to a bi-annual report on the administration progress tabled back in February, Irving believed that many potential whistleblowers feared that the ousted leaders could find a way back into the union if the High Court decision went the other way.

“Uncertainty about whether the former leadership is returning to power has, in some cases, impeded the administration in obtaining full and frank disclosures from complainants,” the report said.

“There is little incentive for employees, delegates, employers and employer peak bodies to fully commit to a reform agenda when some members of the former leadership have intimated that full collaboration with the administration may result in a further cycle of retaliation.”

With the decision finally coming to a culmination in favour of the administration, it could open the door for more whistleblowers to come forward.

Reactions

Speaking on the High Court’s decision, Master Builders Australia CEO Denita Wawn welcomed the result, praising the Labor government for their “political bravery”.

“This reaffirms and continues the requirement for accountability and transparency in a sector too often marred by lawlessness and poor conduct,” said Wawn.

“This ruling is a victory for every builder, subcontractor, apprentice, and business that has suffered under a culture of intimidation, coercion, and disregard for the rule of law.

“This is the opportunity to implement deep, structural reform to permanently rid the industry of criminality and corruption.

“We acknowledge the leadership and political bravery of the federal government in pursuing this course of action.”

The Australian Constructors Association (ACA) welcomes today’s unanimous High Court decision upholding the government’s appointment of an administrator to oversee the construction and general division of the CFMEU.

ACA chief executive Jon Davies said the ruling brings much-needed certainty and clarity to a construction industry that is under the pump both financially and via productivity challenges.

“This decision provides clarity for everyone in the industry, particularly employers and employees,” said Davies.

“It clears the way for the administrator to take full control of the union and ensure the CFMEU and all its officers operate within the law.”

“Workers should be respected for the work they do and be able to do it in a safe environment free from harassment, violence, intimidation and threat.

“It is time to move past individual agendas and focus on collective progress. This ruling clears the way for that to happen.”