ACTU suspends CFMEU construction division as steps are taken to appoint independent administrator to clean up union

An independent administrator is to be appointed to restructure the CFMEU after allegations emerged that the controversial union had been infiltrated by underworld figures.

Labor Minister Tony Burke announced that the government would support the appointment and said it would introduce legislation to purge the organization if the union opposed the move.

“I am convinced that these measures are best taken by the regulator, but as minister I will support any action to appoint an administrator,” he said on Wednesday.

However, the minister refrained from taking steps to revoke the union’s registration, as this would have allowed it to operate without regulation.

“If we simply went down the de-registration route, we would have an organization that would still be able to negotiate and implement the full business model that we have been reporting on over the last few days, without the level of regulation or additional oversight that applies to registered organizations,” he said.

Victorian union boss John Setka resigned ahead of the revelations, after which the state union was placed into administration and New South Wales Premier Chris Minns attempted to expel the CFMEU – one of the most powerful factions on the Labor left – from the party.