Fate of construction union hangs on High Court ruling

Tess Ikonomou |

The CFMEU wants to overturn its construction arm being forced into administration.
The CFMEU wants to overturn its construction arm being forced into administration.

The High Court will deliver its judgment on a legal challenge by the CFMEU to overturn the Albanese government’s move to force the union’s construction division into administration.

The decision will be handed down on Wednesday morning.

The federal government intervened in August 2024, following claims of bikie and organised crime figures infiltrating the scandal-riddled union, in addition to other serious criminal activity.

Controversial leader John Setka claimed the allegations against the union were false, but said he would step down to stop the intense media coverage.

John Setka (file image)
Former union boss John Setka has said allegations of crime links to the CFMEU are false. (James Ross/AAP PHOTOS)

Victoria Police last September said the former construction union boss wouldn’t face criminal charges over visits to government work sites, after it looked into 20 allegations of “potential criminal activity”.

Elected leaders of its construction division branches in Queensland, NSW, Victoria, Tasmania, South Australia and the Northern Territory were sacked and replaced by administrator Mark Irving KC.

Criminal infiltration and corruption of the construction industry was revealed in Mr Irving’s first report as remaining “an area in which much work still needs to be done”.

Previous workplace relations minister Murray Watt credited Mr Irving and his team for uncovering the “unacceptable conduct”.

He later referred further allegations, aired by 60 Minutes, to police for investigation.

A sign supporting the CFMEU (file image)
The federal government forced the CFMEU’s construction division into administration in 2024. (Darren England/AAP PHOTOS)

The government labelled vision of a woman being bashed by a bikie-linked health and safety representative as “horrifying”.

CFMEU national secretary Zach Smith told staff last month he would step away from his role, but would continue to lead the Victorian branch.

A damning interim report by lawyer Geoffrey Watson SC said “lawlessness” in the union’s construction arm was widespread.

Further investigations to identify instances when Victorian branch officials had engaged in or been subject to threatening, violent or abusive conduct were among the seven recommendations he made.

All were accepted by the administrator.

AAP