Press conference, Brisbane

MURRAY WATT, MINISTER FOR EMPLOYMENT AND WORKPLACE 
RELATIONS: Okay, thanks, everyone, for coming along today. This afternoon 
the General Manager of the Fair Work Commission of Australia has filed an 
application to the Federal Court of Australia to put several branches of the 
CFMEU into administration.
The General Manager’s application seeks to establish a scheme of 
administration including the appointment of an administrator to the Construction 
and General Branches National Division, as well as the Victorian, New South 
Wales, Queensland, South Australian and Tasmanian branches. The General 
Manager’s application argues that these branches have ceased to function 
effectively. The administrator has also left open the door to include the West 
Australian and ACT branches if required.
This application, if successful, would vacate about 270 individuals from office, 
seize control over finances and assets and would control a majority vote in the 
relevant branches. This represents the strongest action available to the 
government and the strongest action ever taken by a government against an 
Australian union or employer group.
The Albanese Government has full confidence in the General Manager and of 
his choice of administrator, Mr Mark Irving KC. Mr Irving is a highly experienced 
industrial barrister and corruption fighter. It is my intention to intervene to 
support the General Manager’s application on behalf of the government. I’ve 
asked for advice from my department on the form that would take.
Let me make this clear: this application is not about reducing the terms and 
conditions of workers in the construction industry. This is not an invitation for 
employers and companies to begin weakening conditions for workers on 
construction sites. It is hard, dangerous work and those workers deserve to be 
paid well. And those workers also deserve a union that they can be proud of.
What this is about is ensuring that the Construction and General Division of the 
CFMEU effectively performs its number one job – looking after its members. 
There is no place for criminality or corruption in the construction industry, and 
bullying, thuggery and intimidation is unacceptable in any workplace. Enough is 
enough.
I’ve been a unionist all my working life. The criminality that has been reported 
has nothing to do with unionism. To quickly resolve these issues, I call on the 
CFMEU Construction and General Division to consent to this application, to 
appoint the external administrator and fully cooperate with the administration 
once it is in place.
If the application for administration is not consented to by the CFMEU and the 
matter is not resolved before parliament returns, then the government will 
introduce legislation to enable the establishment of an appropriate scheme of 
administration as swiftly and effectively as possible. It would contain serious 
penalties for undermining or avoiding the scheme of administration. The LNP 
and crossbench must support this legislation if it is brought before the 
parliament.
Today is an important day. Today is the beginning of a new CFMEU, a CFMEU 
that focuses on its number one job - representing its members.
Happy to take any questions.
JOURNALIST: Senator, the union is likely to strongly oppose and drag out 
proceedings, are you confident that FWC has enough evidence to push this 
forward and how long do you wait before introducing legislation?
MURRAY WATT: Well, I hope you're wrong. I hope that the CFMEU consents 
to this application. I hope that the CFMEU Construction and General Division 
leadership recognise that there is a fundamental problem within the union that 
needs to be fixed once and for all. In terms of the success of the application, 
I’m sure the Fair Work Commission General Manager wouldn’t have brought 
this application if he wasn’t successful, and he’ll have the government’s full 
support.
JOURNALIST: Is it your understanding that each individual branch needs to 
consent?
MURRAY WATT: My understanding is that it is a matter for each branch to 
determine whether they consent. But I think it’s fair to say that the national 
division of the union obviously has a big sway over that decision.
JOURNALIST: As you mentioned, there’s some allegations of criminality, we’re 
talking about kickback deals within union agreements. Is an administrator 
capable of taking care of this, and should police be involved?
MURRAY WATT: I don’t think they’re mutually exclusive. The government’s 
view is that the strongest possible action we can take is to facilitate and support 
the appointment of an administrator. There have obviously been calls for other 
ways to deal with this, but this is the strongest way that we can possibly deal 
with it to clean up the problems within this union once and for all. That’s why 
we’re supporting the application.
In terms of police activity, of course allegations of criminal conduct are 
investigated every day by the police, and I’m sure that they’re going to be 
continuing to do that here.
JOURNALIST: Will an administrator be able to change the culture of the 
CFMEU in your opinion?
MURRAY WATT: Yes, I do think the administrator has the opportunity and the 
ability to change the culture of the union. And if this application from the Fair 
Work Commission General Manager is successful it would allow the 
administrator, subject to the court, to vacate officers of the union, to terminate 
the employment of employees of the union who have done the wrong thing and 
to start changing the culture of this organisation once and for all.
There is no doubt whatsoever that workers on construction sites need a strong 
union to represent their interests. But it’s got to be a strong union that is not 
only strong but democratic and clean. And that’s what our government is about 
delivering.
JOURNALIST: From our reporting in the Fin there seems to be a reluctance 
from some police to investigate these matters over a lack of resources or a lack 
of understanding, while at the same time you’ve got IR investigators who don’t 
have the jurisdictional power for this. Wouldn’t a taskforce within the AFP be 
best suited to look after this?
MURRAY WATT: Look, I’ve heard a number of those types of ideas put 
forward, and I’m very happy to consider them. Of course, my focus up until now 
in the four days that I’ve been in this role, is supporting and facilitating the 
actions of the Fair Work Commission General Manager and in preparing 
legislation for introduction in parliament if that’s what it comes to.
In terms of the comments from police about resourcing, of course it’s a matter 
for police commissioners to determine where they allocate their resources. But I 
think all Australians are concerned about some of the allegations that we’ve 
seen surfacing, particularly in recent days. And I’m confident that police 
commissioners would recognise the importance of those allegations and they’ll 
make appropriate decisions about resourcing.
JOURNALIST: Just to be clear, so the application, should it go through, should 
it be successful, will determine the full parameters of the administration – who’s 
in charge, how it is conducted, the authority of each, you know, body, is that 
correct?
MURRAY WATT: Yeah, I mean, some of these questions about the nature of 
the application are probably best put to the Fair Work Commission General 
Manager because it is his application. But I’m certainly happy to share with you 
what I know.
Essentially the application that the Fair Work Commission General Manager is 
making, he is arguing that the branches of the union that are named in his 
application are not effectively able to operate anymore. That’s the test within 
the current Fair Work Act in order for an administrator to be appointed. He 
obviously has to present evidence to support that application, and he’s provided 
some of that evidence in his application. He’ll then be seeking orders from the 
Federal Court of Australia, for example, to appoint an administrator – and he’s 
obviously nominated an individual to take on that role – but also to set the 
powers and responsibilities of that administrator as well. So, they’re all matters 
that the court will need to determine based on the application being made by 
the Fair Work Commission General Manager.
JOURNALIST: That sounds, Senator, like it could be quite time consuming 
because the union would have to comply with some of what the commission is 
putting forward though. So, in preparation for the legislation, though, I mean, 
would that be ready to go within parliament resuming in – what is it – a week 
and a half?
MURRAY WATT: Yeah, well, to start with, I don’t think it has to be a time 
consuming process if the CFMEU consent to this application. And that’s what 
we’re asking them to do. We’re asking them to recognise that there’s a serious 
problem, that it’s in the interests of the union and its members to resolve once 
and for all. But also we’ve made clear that if they don’t consent to this 
application and if it’s not resolved by the time parliament returns, it’s our 
intention to introduce parliament to enable the administration of this union to 
proceed swiftly and effectively. I’ve invested most of the day and night over the 
last three or four days since I took on this role in working with our department 
on that legislation to ensure that it’s ready to go. That would be our intention. 
And, as I say, I would certainly expect to receive the support of the opposition 
and the crossbench to join the government in taking on this problem and fixing 
it once and for all.
JOURNALIST: So is that the timeline then? So if they don’t agree by 
parliament sitting in a few days, that would be when legislation comes in?
MURRAY WATT: That would certainly be our intention. So, as I said in my 
opening statement, I’m calling on the CFMEU to consent to this application so 
that things can start changing within this union immediately. If the union 
decides to not consent to this application, then we will be ready with legislation 
to enable administration to proceed without any barriers being imposed and 
without the years of litigation that it would entail.
JOURNALIST: And what are those barriers? If you could describe what the 
legislation would actually do? Would it be an independent body, completely 
separate from the government on its own or any other entity that we know and 
use?
MURRAY WATT: Well, it’s probably a little too early for me to go into a lot of 
detail about the legislation because we are drafting it at the moment. But I can 
tell you it’s pretty well advanced. But, as I say, what I’d like to see is the 
CFMEU consent to this application. You asked what barriers there would be. 
One barrier to this would be if the CFMEU decide to fight this application and 
decide to drag this through the courts for years. It is a union with a reputation of 
running long-running litigation. I very much urge them to not pursue that course 
and to consent to this application so that the union can be cleaned up and 
really start delivering on what it needs to do, which is focus on the interests of 
its members.
JOURNALIST: Is the legislation being designed specifically for the CFMEU, or 
could it potentially apply to other entities, whether it be other unions or other 
organisations?
MURRAY WATT: Sure. My intention very much would be to keep the focus of 
this legislation on the particular division of the CFMEU which has these 
allegations facing it – the Construction and General Division. I want to make it 
clear that this is not an attempt to go after unions generally. As I said to you, 
I’ve been a unionist all my working life. We’re a Labor Government who 
believes in unions having the power to represent workers’ interests. But what 
we have here is a rogue union that is not upholding the principles of unionism 
and is not putting its members’ interests first. So, there would be no intention 
whatsoever to enable this legislation to apply more broadly either to other 
divisions of this union or to other unions.
JOURNALIST: To the Queensland branch specifically, can you talk to us a bit 
more about what the main issues are there? We’ve heard previously from the 
government incorrectly stating that it was in administration previously when it 
wasn’t. What’s the latest update?
MURRAY WATT: Yeah, so the situation with the Queensland Branch is that it 
is one of the branches of the CFMEU Construction and General Division that 
the Fair Work Commission General Manager is seeking to have placed in 
administration. So, sitting here today no branch of the CFMEU Construction 
Division is in administration. That’s the point of this application being made by 
the general manager. So, he’s applying to the court seeking orders to put a 
number of branches of the union into administration, and one of those branches
is the Queensland Branch.
JOURNALIST: Is there concerns that the similar allegations that have 
happened in the Queensland Branch as what’s happened in Victoria and New 
South Wales? Is that what the government is worried about?
MURRAY WATT: Look, I think it’s probably best that questions around the 
evidence and the basis of the application are put to the Fair Work Commission 
General Manager; it is his application. But I’m aware from his application that 
he’s certainly concerned about the long history of the Queensland Branch and 
other branches of this union showing flagrant disregard for the law but also for 
the allegations of bullying and thuggery and intimidation that we continue to see 
involving this union in Queensland as recently as this week.
JOURNALIST: Senator, this might be related to what I asked before. Master 
Builders have called for an industry regulator with powers to investigate civil 
and criminal matters. What did you make – what do you make of that?
MURRAY WATT: Yeah, I actually met with the Master Builders Association 
about these matters a couple of days ago. It was a very constructive meeting 
where they put forward to me some of their views about what needed to 
happen here. I would point out to you that the Master Builders Association –
really, the peak employer group in the construction industry – is supporting the 
path that the government is taking, which is to seek to have this union or its 
branches put into administration. They’re not supporting some of the calls from 
others to deregister the union or to have a royal commission. They’re 
supporting the path that the government has chosen to take because they 
recognise that that is the strongest and most effective way to deal with these 
issues.
Now, I know the Master Builders, amongst other groups, have put forward a 
range of other suggestions about what needs to be done. I will give all of those 
views and suggestions consideration. But, of course, my focus at the moment 
has been about making sure that this application is ready to go and that we 
have legislation ready to go should it be needed.
JOURNALIST: Just on the timeline with the legislation, so assuming 
unfortunately more likely that the CFMEU branches don’t agree and consent, 
when this legislation is passed, if it is passed, what timeline are we looking at in 
terms of administrators being appointed and the process that follows that 
legislation?
MURRAY WATT: Again, I’d rather not go into too much detail at this point in 
time about the legislation. It is being finalised. I promise you that there will be a 
day to talk about that in greater detail. But, really, we’re taking this step by step 
and what today is about is beginning a legal process to put this union or some 
of its branches into administration. But, as I’ve said, if it isn’t resolved by the 
time parliament goes ahead, then legislation will be introduced, and I’d be very 
happy to provide you with more details about that before parliament returns.
JOURNALIST: Senator, will the legislation, though, have to require the 
cooperation of police, particularly if you’re looking at booting people out of their 
offices and out of their jobs?
MURRAY WATT: Well, I guess that will be a matter for the police and the 
administrator to resolve how any of those decisions are implemented. But if we 
look at the application that’s being made today by the Fair Work Commission 
General Manager, if it’s successful, it would grant powers to the administrator to 
terminate the employment of current office bearers within the CFMEU if they 
have been found to have done the wrong thing.
So how office bearers react to that, whether police are required, that’s really a 
matter for those office bearers. But just as I am saying, I’m calling on the 
CFMEU to consent to this application, I would be calling on them also to 
cooperate with the administrator rather than to resist those actions. It’s in the 
long-term interests of his union and its members to clean the show up and to 
get it back on track.
JOURNALIST: Four unions over most of the country is quite a lot for an 
administrator. Is there scope for an assistant administrator, and do you know 
who you they think that might be?
MURRAY WATT: My understanding at this point is that it’s only intended to 
appoint one administrator, being Mr Irving. However, you may have seen in the 
press release released by the Fair Work Commission General Manager today 
that KordaMentha have been engaged as well to undertake forensic audits and 
a range of other work that will be required. The administrator, I’m sure, will be 
putting together a broader team. If the application is successful he would have 
the power, for example, to employ other people to work in the union, because 
we want to make sure that this union can continue to function. We want to 
make sure that construction workers who are members of this union continue to 
have representation on what are really dangerous work sites and to ensure that 
they get paid fairly and get good conditions. So, the administrator would need 
to appoint a range of people, both to operate the union going forward but also 
to undertake the investigations that will no doubt be required.