Construction bosses and whistleblowers would be free to speak against the union in new Senate inquiry

Construction industry bosses and whistleblowers would be free to speak out against the Construction, Forestry and Maritime Employees Union (CFMEU) under cover of a potential parliamentary inquiry amid concern existing workplace regulators lack investigative teeth and protections.

The push for an inquiry, which is set to be finalised late next week ahead of parliament’s return after the winter break, comes as the Fair Work Commission on Friday paved the way for a complete takeover of the CFMEU’s national, state and territory divisions.

The much-anticipated intervention sets the scene for a potential showdown between the CFMEU and the government, which has vowed to introduce emergency legislation to prevent the union from derailing the Fair Work action.

But fresh doubts about the commission’s powers have also emerged this week, with Nine newspapers reporting on Friday that the body lacks legal authority to obtain police and other evidence against the union.

Master Builders Australia, the building industry’s peak body, said “far more” needed to be done in the wake of the commission’s push on Friday.

The commission has asked the federal court to appoint Victorian barrister Mark Irving KC to take command of the union, potentially remove around 270 officials and seize control of finances and assets.

That application will need to be heard and considered by the court before the takeover takes effect.

Master Builders said there remained a larger need to provide “strong and comprehensive protections” for people seeking to give evidence to the various investigations and inquiries now under way.

MPs demanding greater action against union

The remarks add momentum to a series of calls in recent days by independent federal MPs demanding greater action against the union alongside tougher industry oversight.

A new avenue to impose greater scrutiny on the CFMEU will likely emerge next week, with Nationals leader in the Senate Bridget McKenzie gathering support for a parliamentary inquiry that would protect whistleblowers and compel witnesses and agencies to give evidence.

“It is abundantly clear now that the Albanese government’s preferred investigator — the Fair Work Commission — cannot do the job of cleaning up the CFMEU,” Senator McKenzie told the ABC.

“The FWC does not have the necessary powers, the reach, or the resources. That much is clear.”

Senator McKenzie said in the absence of a special commission of inquiry with broad-based powers or a multi-agency police taskforce, the “obvious path” was a Senate inquiry.

“The Senate can compel witnesses to attend, and can also provide witnesses, including government agencies, the protection of parliamentary privilege and the power to receive and deliberate on confidential evidence,” she said.

“This is a once-in-a-generation opportunity to tackle an endemic problem that costs all Australians. The Australian parliament must do its part.”

Workplace Relations Minister Murray Watt said Fair Work’s move was the “strongest action available to the government”.

It was also “the strongest action ever taken by a government against an Australian union or employer group,” Senator Watt told reporters.

Commission moves to appoint CFMEU administrator

The commission is seeking to appoint Mr Irving and a team of assistant administrators to clean up the beleaguered organisation, which has been subject to a series of damaging media reports about its links to organised crime and standover tactics.

Fair Work said the administrator would cover the divisional executive and offices in Victoria, Tasmania, NSW, Queensland, the Northern Territory and South Australia.

“The remaining divisional branches in Western Australia and the Australian Capital Territory would continue to function as usual but could be brought under the scheme at a later date on application to the court,” the Fair Work Commission said.

“There is no place for criminality or corruption in the construction industry and bullying, thuggery and intimidation is unacceptable in any workplace,” Senator Watt said.

“Enough is enough.”

If the CFMEU chooses to fight the intervention, Senator Watt said, he would have legislation ready for the next sitting week.

Passing those changes could force Labor into negotiations with the Coalition and crossbench, an increasing number of which are calling for greater transparency and action.

“The LNP and crossbench must support this legislation if it is brought before the parliament,” Senator Watt aid.

ACT senator David Pocock, whose vote helped sink the former Coalition government’s building industry watchdog — the Australian Building and Construction Commission — told the ABC last week he now wanted Labor to do more.

His remarks were followed by a letter to the prime minister this week penned by six independent MPs and Tasmanian senator Jaquie Lambie telling the government that the appointment of a CFMEU administrator would not be enough to clean up the industry.

The group also noted that legitimate businesses were too intimidated by the actions of the CFMEU to speak out.

Master Builders Australia said in the wake of Fair Work’s application to appoint an administrator that “far more needs to be done in order to build on the moves to date and ensure that they drive lasting and meaningful change once and for all”.

“This starts with making sure strong and comprehensive protections are in place for people wishing to come forward with evidence, information, or materials to support the various investigations and inquiries underway,” they said.

“These protections must be complemented through stronger powers for regulators to receive information, obtain materials and conduct investigations in a manner that protects everyone from reprisals, payback or future adverse consequences.

“We are also calling for the federal government to establish one central overarching body to coordinate the various inquiries currently underway.”

Senator Watt on Friday appeared supportive of calls for greater police resourcing. Since being sworn in on Monday as the new workplace minister after Tony Burke was moved to immigration, Senator Watt said he was “happy to consider” ideas being put to him.

“In the four days that I’ve been in this role, I’ve been supporting and facilitating the action of the Fair Work Commission general manager and in preparing legislation for introduction in parliament if that is what it comes to,” he said.

“All Australians are concerned about some of the allegations we have seen surfacing, particularly in recent days, and I’m confident police commissioners would recognise the importance of those allegations and make appropriate decisions.”