On Friday 23 August 2024 the Federal Attorney-General, Mark Dreyfus KC, made a Fair Work (Registered Organisations) (CFMEU Construction and General Division Administration) Determination 2024 (the Determination) which declared that it was in the public interest that the Construction and General Division of the Construction, Forestry and Maritime Employees Union (Federal Union) registered under the Fair Work Registered Organisations Act 2009, be placed into administration. Mark Irving KC was appointed as the administrator.
The Determination, at Annexure A, sets out the scheme of the administration, including the responsibilities, powers, functions and duties of the Administrator (section 6) and declared that certain offices in the Federal Union are vacated (section 3(1)) except for offices in the Western Australian and ACT Branches of the Federal Union (section 3(2)). With respect to the offices of the Western Australian Branch of the Federal Union that have not been declared to be vacated, section 7 of the Determination provides that the Administrator may exercise all the usual powers of the office holders under the CFMEU rules and other legislation.
The Determination does not apply to the Construction, Forestry, Mining and Energy Union of Workers (State Union), registered under the Industrial Relations Act 1979 (WA) (IR Act). The State Union may exercise rights of entry and represent its members in matters arising under the IR Act.
The Determination does not directly impact on the:
- ability of the State Union to operate including exercising rights of entry or negotiating industrial agreements.
- WASU demarcation application against the State Union in CICS 5, 8 and 9 of 2023 which is currently part heard.
Local Governments should continue to manage their industrial obligations under the IR Act as they relate to the State Union, including right of entry and other matters.
As the full impact of the Determination comes into effect it may have indirect consequences, given that some office holders in the Western Australian Branch of the Federal Union also hold office and perform duties for the State Union.
To date the Western Australian Government has not taken steps to put the State Union into administration under the IR Act. On Friday 23 August 2024 the Premier moved to suspend the Western Australian Branch of the Federal Union from WA Labor. Previously the Western Australian Government has said that it will change the IR Act to introduce a fit and proper person test for Right of Entry permits.
If you have any questions about this alert, please email WALGA Employee Relations or call 1300 366 956.
