Key Points
- The CFMEU's construction division is under fire over reports of corruption and links to organised crime.
- Labor will suspend ties between the division and the party's NSW, Victoria, South Australia and Tasmanian branches.
- The party won't accept affiliation fees or political donations from the CMFEU's construction arm to those branches.
Labor's national executive is freezing ties with the Construction, Forestry and Maritime Employees Union's (CFMEU) construction division, as corruption accusations continue to chase the disgraced union arm.
The CFMEU's construction arm has come under fire over a series of Nine newspaper reports alleging corrupt conduct and organised crime links within its ranks, with the Fair Work Commission set to appoint an independent administrator to the union.
, with Queensland freezing talks, and NSW and Victoria pausing donations from the organisation.
On Thursday, the federal Labor Party followed suit.
After a national executive meeting, Labor's national secretary Paul Erickson announced it would suspend the CFMEU's construction division's affiliation to the NSW, Victoria, South Australia and Tasmanian branches of the party.
This means the Labor Party will not accept affiliation fees or political donations from that division.
"The number one job of any union and its officials is to look after its members. The reported behaviour is the complete opposite of this," Erickson said.
The suspension will remain in place until further notice and the party will consider suspending affiliations with the union's other divisions if they are placed into administration.
Independent administrator to overhaul CFMEU
The suspension comes after Workplace Relations Minister Tony Burke moved to install an independent administrator to overhaul the construction arm of the union.
The administrator would be appointed after a court application by the Fair Work Commission.
"The government will ensure the regulator has all the powers it needs to appoint administrators, there can be no place for criminality or corruption in any part of the construction industry," Burke said.
He warned he would introduce legislation if the CFMEU challenged the commission's attempts.
Burke has also requested the Fair Work Ombudsman review enterprise agreements made by the Victorian branch of the CFMEU's construction division after a request from the Victorian premier, and called on the Australian Federal Police to investigate the reports.
'We will not flinch': ACTU suspends CFMEU due to allegations
The fallout from the allegations has also rattled the broader labour rights movement, with the Australian Council of Trade Unions (ACTU) moving to suspend the construction division of the CFMEU.
ACTU secretary Sally McManus said she was previously unaware of the allegations but estimated it would take years for the union to purge its alleged criminal elements and restore its name.
She also revealed she had been warned of threats to her safety after previous attempts to go after the CFMEU, but remained steadfast.
ACTU Secretary Sally McManus said it would take years for the union to restore its reputation. Source: AAP / Joel Carrett
"We will not flinch."
McManus warned the union not to fight the Fair Work Commission's push to appoint an administrator, saying it was the best way to ensure confidence in the labour movement.
"We would ask the union, the whole of the union, including the Queensland branch, to cooperate with external independent administrators, this is the best path forward," she said.
Alleged criminal actions didn't represent the trade union movement, McManus added.
The suspension of the division would last until the union could demonstrate "they are a well-functioning, clean union free of any criminal elements".
The CFMEU argues the move will strip tens of thousands of workers of effective representation.
The union has also argued it can clean up its divisions, including with an independent review.
