The Construction, Forestry and Maritime Employees Union (CFMEU) has been placed into administration by the Federal Government.
All branches are affected, including Western Australia and the ACT.
Naming lawyer Mark Irving as administrator, Attorney-General Mark Dreyfus said he was acting in the “public interest” amid allegations of criminal activity within the union.
Earlier this week the Coalition agreed to back the Federal Government’s bill for tighter controls on the construction group.
The move has been welcomed by Master Builders Australia, with CEO Denita Wawn saying it was a critical first step in getting the building and construction industry on the road to meaningful cultural change.
“Master Builders applauds the bipartisanship approach at federal and state levels to clear the way for the administrator to hit the ground running,” she said.
“This culture has existed for decades and has stifled productivity and increased the cost of construction at the expense of the community, taxpayers, jobs and small business.
“We all, whether as employers, workers or union members, deserve to work in an industry that is lawful, safe and free from corruption, coercion, bullying and intimidation.
“Everyone in building and construction recognises the important role that unions play in workplaces but it’s clear some within the CFMEU have lost their way.
“The relationship between employers and unions should be a constructive and mutually respective one and we hope this is the first step to achieving that goal.
“Master Builders urges all industry participants to come forward to report any conduct or potentially unlawful activity involving the CFMEU to the Fair Work Commission.”
Wawn said the Federal Government must now move to establish a dedicated building and construction industry watchdog “with real teeth”.
In a statement, the CFMEU said the administration meant that the jobs of 270 officials had been terminated.
“These officials are hard working, committed trade union leaders, whose only motivation was to further the conditions of thousands of CFMEU members. They are proud of having achieved this,” it said.
“The State and Federal Government’s actions have done nothing more than attack the rights and conditions of thousands of CFMEU members and their families.”