In a statement on Friday, the Fair Work Commission said it had initiated proceedings in the Federal Court to appoint Irving as an independent administrator “following significant consultation with a wide range of stakeholders representing both employer and employee interests”.

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The FWC said it had asked the Federal Court to allow Irving to take “as long as necessary” to clean up the CFMEU’s construction branches down the east coast and in South Australia, with the option to also place the Western Australian and ACT branches into administration.

Although the Albanese government and trade union leaders, including ACTU chief Sally McManus and CFMEU manufacturing division bosses Leo Skourdoumbis and Michael O’Connor, support the appointment of a court-backed independent administrator, Irving’s appointment is not guaranteed.

Embattled construction union leaders Darren Greenfield and Derek Christopher, who have both been the subject of serious, albeit denied, corruption allegations, are backing the rearguard action by Smith to thwart Irving’s appointment via legal challenges.

One veteran union insider, who spoke on condition of confidentiality citing fear of repercussions, told this masthead the construction union was prepared to spend millions of dollars in members’ funds to stop a process which would almost certainly result in the sacking of Greenfield, Christopher and other CFMEU leaders accused of corruption.

Greenfield’s case remains before the court and is yet to be tested by a jury. There is no suggestion he is guilty and even if he was removed from his role it would not mean he was guilty of an offence. Christopher has not been charged but is the subject of a police investigation. There is no suggestion from this masthead he is guilty of an offence, a finding that can only be made by a court.

A protracted legal battle would also have political ramifications, given it would be seized upon by the Coalition to argue that the Albanese government’s plans to clean up the CFMEU are ineffective.

The FWC statement said Irving would be empowered to ensure the CFMEU’s construction wing branches “function effectively and lawfully” and that he would be able to “remove officers, officials and employees from their positions”.

In addition to re-writing union rules that have failed to stamp out misbehaviour, Irving would also be able to “take possession of all property and credit cards, exercise votes of the offices he holds and bring proceedings to recover funds, impose penalties and award compensation”.

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“The administration of the Division or a Divisional Branch will only end after the Administrator certifies that it is functioning effectively, and the Fair Work Commission’s General Manager agrees,” the FWC said in a statement.

The commission also said it would appoint auditing firm KordaMentha to conduct a deep dive into the union’s finances and establish a “Building and Construction Industry Committee” to advise FWC general manager Murray Furlong about the reform process.

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