High Court win paves way for CFMEU clean up
The High Court has dismissed a legal challenge to the federal government's takeover of the CFMEU's construction division, in a win for Labor and a major defeat for the union's sacked officials.
In a unanimous decision, the court dismissed all the grounds for the challenge by the ousted CFMEU officials including that the administration legislation was unsupported by a head of commonwealth legislative power; infringed the implied freedom of political communication; and infringed the constitution.
The decision clears the way for CFMEU administrator Mark Irving, KC, to take more decisive action to clean up the union.
Mr Irving welcomed the court decision and what he called 'its rejection of the attack on the legitimacy of the administration'.
'The decision provides clarity and it paves the way for the greater systemic reforms necessary for the union and across the industry,' he said.
'Along with the CFMEU, employers, regulators and governments all have a role to play in rooting out malignant and violent actors from the construction sector.'
Mr Irving had previously said the High Court challenge had frustrated his ability to get whistleblowers to come forward, as they feared ex-officials could be returned to power.
'The administration is committed to returning the union to the membership as a strong democratic, member-controlled Union, enduringly free of corruption and criminal influence as soon as possible,' he said on Wednesday.
The construction division was forced into administration last year following damaging allegations about the union's links to organised crime and outlaw motorcycle gangs.
Workplace Relations Minister Amanda Rishworth welcomed the High Court decision, reiterating that the government 'will not tolerate criminal behaviour, corruption or violence in the construction industry'.
'We need to focus on shifting the culture in the construction industry and ensure the bad actors we have seen infiltrating this sector are kept out,' Ms Rishworth said.
Construction workers deserve a union free from criminality, corruption and violence.
She said Mr Irving and his team could now move forward with confidence and continue their essential work in cleaning up the construction and general division.
'We are committed to the administrator remaining in place until the job is done, and we will continue to provide him and his team with all necessary support as they undertake their challenging and crucial task,' she said.
Master Builders Australia chief executive Denita Wawn said the court decision 'clears the path for long-overdue cultural reform in the building and construction industry'.
'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,' she said
'The appointment of an independent administrator to the CFMEU is a crucial step in restoring integrity to the construction industry but it must not stop there.
'This is the opportunity to implement deep, structural reform to permanently rid the industry of criminality and corruption,' Ms Wawn said.
She said Master Builders commended the government 'for its resolve in standing up for the rule of law and pushing through the administration legislation in the face of vocal opposition'. 'We acknowledge the leadership and political bravery of the Federal Government in pursuing this course of action,' she said.
'It takes courage to confront a culture as entrenched as the one exposed in our industry, and we commend the Government for not backing down. This decision sends a strong message that no one is above the law, and that reform in construction is not negotiable.'
Civil Contractors Federation national chief executive Nicholas Proud said the court decision was a 'welcome relief for contractors, who can now focus on their
core business without the looming threat of bullying and intimidation'.
'This decision reinforces the importance of upholding compliance and fairness within enterprise agreements, providing contractors with much-needed certainty and stability,' he said.
'For many in the industry, this outcome is a chance to move forward with confidence, free from the distractions of protracted legal disputes. The CCF will continue to work closely with members to ensure they are supported in leveraging this clarity to secure strong and equitable agreements that underpin long-term growth.' Nation
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