Posted: 2024-08-19 05:35:28

The CFMEU will be forced to accept an administrator, as the federal government has struck a deal with the Coalition to pass laws to take control of the troubled construction union.

The bill has passed the Senate with Coalition amendments, and will now be sent to the lower house where it will become law.

Shadow Industrial Relations Minister Michaelia Cash confirmed the Coalition was prepared to support the bill after the government agreed to three-year minimum periods of administration, permanent bans of officials where deemed necessary, and the opportunity to grill the administrator every six months in parliament.

The Coalition also secured assurances that the CFMEU would be banned from making any political donations or incurring any election campaign expenditure while it was under administration.

Senator Cash said the Coalition had been given a letter from the administrator to Workplace Relations Minister Murray Watt, laying out that one of his primary goals would be to ensure that spending was blocked.

"We are now in a position to provide passage," Senator Cash said.

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Murray Watt and Michaelia Cash have been in negotiations over the CFMEU bill. (ABC News: Luke Stephenson)

Senator Watt said the government was now moving with urgency.

"We do want to make sure we do this in a way that holds up legally ... [but] we are well advanced in drafting a scheme of administration," Senator Watt said.

"I would certainly be hopeful we will finalise a scheme of administration in the next few days."

The legislation enables a scheme of administration to be set over the construction division of the CFMEU, and allow the Fair Work Commission to appoint an administrator.

The union has been in turmoil since allegations outlaw motorcycle gangs had infiltrated its branches, with bikies allegedly appointed as delegates on major projects, amid wider claims of bullying, intimidation and corrupt conduct.

In a statement, CFMEU national secretary Zach Smith said the government's "targeted attack on construction workers" undermined the union's democratic rights, and the undermined principles of procedural fairness.

"The media have a right to expose issues, but they are not a court and, until allegations have been tested by the legal system, people and organisations are entitled to a fair process," Mr Smith said.

"The allegations put by the media are very concerning and have been taken seriously by the union, with an independent investigation already launched, a governance review commissioned and individuals either removed from the union or stood down pending the investigation.

"These allegations remain exactly that – allegations – completely untested in the legal system."

Mr Smith said a forced administration would fail to address real issues of criminality and corruption.

The government announced its intention to introduce legislation after delays in the courts and indications the union intended to fight the application to place it into administration.

Its legislation was delayed last week after the Greens and Coalition defeated attempts to force a vote on the issue, in particular because the Coalition sought a guarantee the union would be banned from making political donations.

The Coalition asserts the CFMEU has donated more than $6.2 million to the Labor Party since it took office in May 2022.

Greens leader Adam Bandt said the legislation was an unprecedented attack on the rule of law.

"Civil liberties groups have rightly said this bill is a threat to freedom of association and the rights of all unions and membership based organisations," Mr Bandt said in a statement.

"The Greens told the government we were prepared to negotiate on the legislation and seek to address some of the serious concerns in the bill, but instead Labor has worked with the anti-union, anti-worker Liberals."

The Greens opposed the legislation when it was put to a vote in the Senate.

The federal government and opposition have used debates in the Senate chamber to accuse the Greens of cosying up to the CFMEU, which the party has denied.

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