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Administrator to be appointed over CFMEU claims

The federal Labor government has decried “abhorrent” behaviour within the powerful construction union, as the Fair Work Commission takes Federal Court action over allegations of criminal links and corruption.

Following reports of criminal misconduct and bikie links within the union’s construction arm, a court application will be made by the Fair Work Commission to nominate an independent administrator to the CFMEU.

Workplace Relations Minister Tony Burke says the government won’t stand in the way.

“The number one job of any union is to look after its members … the reported behaviour for the construction division of the CFMEU is the exact opposite of that obligation,” Burke said on Wednesday.

“It’s abhorrent, it’s intolerable.

“There can be no place for criminality or corruption in any part of the construction industry.”

A Labor government took similar action in 2012 when the Health Services Union was embroiled in controversy over fraud and theft charges.

Victorian branch secretary John Setka resigned on Friday ahead of media reports into the union’s alleged criminal and bikie links.

Both SA Premier Peter Malinauskas and NSW Premier Chris Minns have called on ALP officials to suspend affiliations with the CFMEU due to inquiries into the claims, while Malinauskas has asked SA Police to investigate the local branch.

Both the SA and Victorian CFMEU branches were placed into administration earlier this week and the union says it’s conducting its own enquiries, but there are concerns about its independence.

Fair Work Commission general manager Murray Furlong said his organisation was undertaking careful analysis of the allegations.

“I am deeply concerned about the alleged conduct and commentary that organised crime has infiltrated several state branches of the Division, including that it appears to be embedded and ongoing,” he said in a statement.

“I have already initiated a wide range of operational activities, including seeking advice on making an application to the Federal Court.

“I have also commenced sharing information with other regulatory and law enforcement authorities and requesting evidence about alleged contraventions from a wide variety of participants in the building and construction industry.”

 – AAP
Topics: CFMEU
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