Watt is not expected to put the state and national divisions of the union into administration until next week at the earliest.
The laws do not ban the union from making political donations while it is in administration, but Mark Irving KC, who is expected to be appointed administrator, has assured the Coalition this will not occur.
CFMEU national secretary Zach Smith said the union had not yet decided whether to proceed with a legal challenge.
“It is genuinely under consideration, and the union hasn’t finalised its decision,” he said. “I think this is an affront to democracy, it’s a very dangerous piece of legislation.”
If the takeover proceeds, Smith said he was hopeful of continuing to work for the union.
“Whilst it is yet unknown, if given the opportunity I do want to continue to serve the union to make sure the members have a voice during administration. It’s important to protect their rights and interests.”
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Greens leader Adam Bandt said on Wednesday the potential for a High Court challenge was proof the legislation was at risk of being unlawful.
“Our concern is that this rushed and flawed legislation deals with some pretty fundamental rights and some pretty fundamental principles in this country, including the rule of law,” he said.
“If you rush legislation, especially when it’s seriously affecting fundamental rights in this country, then there’s a chance of getting it wrong.
“We urged Labor to consider this seriously and take it carefully; instead, they’ve done a rushed deal with the Liberals and ended up with flawed legislation that fundamentally affects people’s rights.”
In 2012, the Health Services Union went to court to fight being placed into administration but eventually lost the battle.
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