CFMEU loses High Court challenge
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The news: The High Court has rejected the CFMEU’s challenge to legislation that placed the union’s construction division into administration in August 2024 amid allegations it had been infiltrated by outlaw motorcycle gangs.
The 7-0 decision was welcomed by the administrator, Mark Irving SC, who said the decision “paves the way for the greater systemic reforms necessary for the union and across the industry”.
The context: An investigation by Nine mastheads revealed bikies had been appointed union delegates on major projects, and uncovered evidence of intimidation and corrupt conduct.
The Albanese government amended the Fair Work Act to facilitate the takeover and replace the union's leaders with Irving, which prompted a legal challenge led by top silk Bret Walker SC. Irving said it was an attack on the legitimacy of the administration.
The reasoning: The union had four arguments: that the legislation violated the implied freedom of political communications by preventing the unions from having its own leadership that might speak out on political issues; that it had acquired union property on other than just terms; that the laws were not connected to a head of power in section 51 of the Constitution; and that it involved an exercise of judicial power.
All were rejected, with Chief Justice Stephen Gageler saying the legislation was a "meaningful practical limitation on political communication".
The court's judgment summary said Irving "will continue to have powers of control, management, and disposition of property of the CFMEU previously used solely or predominantly for the purposes of the C&G (Construction and General) Division or any of its branches."
