High Court’s CFMEU decision praised, but ‘the real storm is far from over’

Wednesday’s (18 June) High Court decision to reject the legal challenge of the appointment of an administrator to the CFMEU received praise across the sector – but the reset “must be permanent”.

Minister for Employment and Workplace Relations Amanda Rishworth welcomed the High Court’s decision to reject ousted CFMEU representatives’ legal challenge to being put into administration – dismissing the challenge on all grounds.

“The Albanese Labor government welcomes the decision by the High Court to uphold our legislation and scheme of administration, which placed an administrator into the CFMEU construction and general division. The government will not tolerate criminal behaviour, corruption, and violence in the construction sector,” said Rishworth.

“We need to focus on shifting the culture that has allowed for bad actors to infiltrate the construction industry, and we need to keep them out. Construction workers deserve a union that’s free from criminality, corruption, and violence.”

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

“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,” said Irving.

When quizzed on this dynamic and how it could potentially bolster the administration’s outreach now that the decision has been made, Rishworth said: “My message is that the administrator can get on and do its job …”

“… That should give people confidence to come forward and speak with the administrator if they have any information to provide … what I expect is that the administrator will continue to do that really important and essential work.”

Speaking on the decision, Australian Industry Group chief executive Innes Willox argued that the administration’s approach thus far has been rather soft, hoping that the decision negates this behaviour from ever occurring again.

“Suffice it to say that industry has, to date, been underwhelmed by the achievements of the administration. Beyond addressing criminality, there is a real sense that the administration has shown far too much acceptance of continuing a ‘business-as-usual’ approach to the CFMEU’s practices.

“The government must now take concrete steps to ensure the CFMEU’s failures are never repeated – in any sector or union.

“Working Australians deserve trade union representation that is lawful, accountable, and trustworthy.”

Similar to Willox, although the broad consensus has been praised for the High Court’s decision, Jon Davies, chief executive of the Australian Constructors Association, claimed that “the real storm is far from over”.

“If the administrator now managing the CFMEU is given the support and resources needed to reset the culture, we can finally move away from an approach too often driven by personal power over project outcomes. But that reset must be permanent. That means further legislative reform to ensure long-term industrial stability.

“The construction industry is used to solving complex problems every day. There is no more complex problem than turning the industry around and, following the High Court’s decision, there has also never been a better opportunity or more pressing need to do this,” said Davies.