The Strange Case of the Liberals Defending the Rule of Law While Labor Pushes Through Draconian Union Legislation
In a surprising turn of events, the Industrial Relations Amendment (Administrator) Bill 2024, designed to place the Construction, Forestry, Maritime, Employee’s Union (CFMEU) under administration, has exposed an unusual political dynamic in the parliament. While the Liberal Party, a known adversary of unions, introduced several amendments advocating for judicial oversight, due process, and parliamentary accountability, the Labor Party—traditionally critical of union power—blocked these proposals and pushed through the bill in its most draconian form.
The Bill in Question: A Draconian Overreach
The Industrial Relations Amendment (Administrator) Bill 2024 grants the government sweeping powers to place the CFMEU under administration, effectively displacing its elected leadership and putting a state-appointed administrator in control of its operations. The bill allows the administrator to:
Suspend or remove union leaders.
Control the union’s assets and funds.
Amend the union’s internal rules and restructure its governance as it sees fit without any accountability.
While the bill is positioned as a response to alleged and unproven misconduct within the CFMEU, it contains several disturbing elements, particularly the lack of transparency, judicial oversight, and accountability. There is no provision for independent oversight of the administrator’s actions, nor is there any requirement for the administrator to regularly report to any body, government or parliment. Even more concerning, the financial burden of the administration is placed entirely on the union, potentially crippling it before any wrongdoing is proven.
Liberals’ Surprising Defence of Due Process
Make no mistake—the Liberals remain staunchly anti-worker. Historically, they have introduced multiple legislative measures aimed at dismantling union power, and their opposition to the CFMEU is no secret. Many of the proposed amendments still reflected their broader goal to weaken the union’s influence.
However, amid these efforts to damage the union, the Liberals also introduced amendments that—surprisingly give the illusion that they were more progressive than the Labor Party's stance on critical issues of due process and judicial oversight.
One of the most notable Liberal proposals was the establishment of a Royal Commission to investigate the CFMEU’s activities. This would have created a perceived independent inquiry to examine allegations of misconduct, financial mismanagement, and connections to criminal enterprises. The Royal Commission creates the illusion of upholding the rule of law where they would have had pressure to ensure that any investigation into the CFMEU was conducted impartially, with judicial integrity and transparency, rather than being left solely in the hands of a government-appointed administrator.
Additionally, the Liberals proposed giving the Industrial Court broader powers to summon individuals for examination, ensuring that any investigation into union activities was subject to judicial review. This amendment reflected an attempt to show a belief in the separation of powers—a key tenet of the rule of law—which dictates that investigations of this scale should be handled by an independent judiciary rather than by executive appointees with unchecked authority which the administrator now has since the bill has passed.
It’s a remarkable irony that the party known for its anti-union stance was advocating for due process and judicial fairness, protections (albeit a farce) that Labor surprisingly resisted. These Liberal amendments were an attempt to introduce transparency and maintain some perceived level of integrity of the legal process, even while they remained hostile to the union's broader role in Australian industrial relations.
But Not Without Harmful Proposals
However, the Liberals’ proposals were far from benign. Alongside their surprising smoke and mirrors defence of due process, the party continued to pursue measures aimed at weakening the CFMEU. Their proposed amendments included extensive investigations into the union’s financial dealings and connections to alleged criminal enterprises, which, while framed as efforts to enforce transparency, were motivated by a desire to undermine the union’s influence.
The Royal Commission they proposed, though seemingly neutral, could have easily been weaponised to further damage the CFMEU's reputation, regardless of whether any substantial misconduct was proven. By pushing for such investigations, the Liberals maintained their overarching anti-union agenda, even while calling for rule of law protections.
Broadening the Scope: Targeting More than Just the CFMEU
While the Liberals appeared to defend due process, they simultaneously pushed for amendments that would broaden the scope of the bill to target other unions, not just the CFMEU. One of their proposed amendments called for administrators to be appointed to any employee organisation where there was evidence of gross misconduct or an ongoing investigation. This would have allowed the government to place other unions under administration if they, too, were accused of misconduct, effectively opening the door for state intervention across a wide range of unions.
This expansion of the bill’s scope demonstrates that, despite the Liberals' surprising calls for due process, their anti-union agenda was still very much alive. Their attempt to extend the bill beyond the CFMEU reveals a broader strategy to weaken the influence of unions as a whole, not just the CFMEU. Although it wasn’t passed, it shows their intentions for the future, enabling the government to potentially target any union for administrative control, regardless of the specifics of their case.
Labor’s Push for Draconian Control
What makes this situation even more puzzling is the Labor Party’s role in the bill’s passage. Traditionally, Labor has positioned itself as critical of excessive union power, but still protective of unions' ability to function without undue government interference. However, in this case, Labor blocked the Liberal and Greens amendments that would have introduced safeguards, such as independent oversight and parliamentary reporting.
By pushing through the bill in its most punitive form, the labor government passed through the following into legislation:
Appoint an administrator with sweeping powers and no independent oversight.
Seize control of union funds and assets without judicial approval.
Impose financial penalties on the union before any wrongdoing was legally established.
This approach seems to fly in the face of democratic principles, leaving many unionists questioning the ALPs motives. By rejecting measures that would have ensured fairness, transparency, and due process, Labor essentially spearheaded draconian legislation that places unchecked power in the hands of the government.
While the Liberals’ broader agenda still aimed to weaken the union’s power, the amendments they put forward—when viewed in isolation—were more progressive in defending due process and judicial fairness than the Labor Party’s stance.
Greens’ Push for Transparency and Accountability
The Greens, meanwhile, introduced amendments that aimed to increase transparency and hold the government accountable. One of their key proposals was for the administrator to report to Parliament every six months, providing detailed updates on their actions and expenses. This would have introduced a layer of parliamentary oversight that was not in the original bill, ensuring that the government could not act in secret.
Additionally, the Greens argued that the state, rather than the union, should cover the administrator’s expenses. By placing the financial burden on the CFMEU, the government effectively punished the union before any wrongdoing was proven, violating basic principles of fairness. The Greens recognised this and pushed for a more balanced approach that would protect the union from unnecessary financial harm.
The Rule of Law and Separation of Powers
At the heart of the debate over this bill is the fundamental question of separation of powers and the rule of law. The amendments proposed by the Liberals and Greens were attempts to curb executive overreach and ensure that the administration of the CFMEU adhered to principles of fairness, transparency, and judicial oversight. Their proposals included:
Judicial investigations through a Royal Commission, ensuring an “impartial” inquiry.
Judicial oversight via the Industrial Court’s ability to examine witnesses and demand documents.
Parliamentary accountability, requiring the administrator to report on their actions and finances regularly.
Some of the suggested amendements aimed to maintain an essence of rule of law—the idea that government actions must be transparent, accountable, and subject to legal review. The Labor Party’s decision to block these amendments, while supporting the bill in its most authoritarian form, represents a disturbing shift away from these principles.
Labor’s Troubling Shift
The passing of the Industrial Relations Amendment (Administrator) Bill 2024 sets a dangerous precedent. By granting the government near-total control over union operations without proper oversight, this bill undermines the rule of law and places unions at the mercy of the state.
While the Liberals remain a party that has historically worked to weaken unions, it is striking that their proposals for due process and judicial fairness were more progressive than those of the Labor Party. Labor’s rejection of these proposals raises questions about its commitment to transparency and fairness.
In this case, it is the Labor Party that has facilitated the passage of a bill that undermines union rights, while the Liberals, in a twist, took up the mantle of defending some type of legal integrity.
This legislation should serve as a wake-up call for those who believe in the separation of powers and due process—no matter where you stand on unions, the principles of fairness and transparency must be upheld.
sources:
https://www.parliament.nsw.gov.au/bills/Pages/bill-details.aspx?pk=18619