CFMEU Administration upheld by High Court ruling, clearing the path for major union reforms

Industrial relations in the construction sector are set for a major overhaul, with the High Court of Australia unanimously upholding the validity of the Federal Government's legislation which placed the CFMEU (General Division) into administration (Ravbar v Commonwealth of Australia [2025] HCA 25). Stakeholders should be revising their industrial relations strategies now.

The Administration Legislation: background

The Administration Legislation was unprecedented and highly controversial, immediately impacting industrial relations on all major construction projects across Australia. It was implemented by the Federal Government in August 2024 in response to The Australian Financial Review's Building Bad expose, which alleged systematic breaches of employment, industrial relations, and criminal law, on the part of the CFMEU – including on major government projects.

The Administration Legislation appointed Mark Irving, KC, as Administrator over the National CFMEU body, tasked with transforming the CFMEU into "strong, democratic, member controlled, industrially proactive and effective Union, enduringly free from corruption and criminal influence" and immediately removing over 280 CFMEU officials from office.

Ousted union officials swiftly challenged the constitutional validity of the Administration Legislation, bringing a special case in the High Court, alleging it breached the separation of powers and the implied freedom of political communication (amongst other things).

CFMEU Administrator, Mark Irving KC has long claimed that "much of the Administration has been conducted in the shadow of the High Court proceeding", with the uncertainty about whether the former leadership of the union would be returning to power impeding the Administration from undertaking its role.

Mr Irving KC explained in this report that the ongoing High Court proceedings was preventing the Administration from obtaining full and frank disclosures from complainants, and was resulting in there being little incentive for employees, delegates, employers and employer peak bodies to fully commit to proposed reform agendas.

Implementing the CFMEU Strategic Plan and its impact on the construction sector

With that uncertainty removed Mark Irving has said the decision has "paved the way for the greater systemic reforms necessary for the union and across the industry". The Federal Government has echoed Mr Irving's statements, committing "all necessary support" to the administration and its agenda. 

We can now expect to see the CFMEU's Administration quickly and emphatically push forward with the matters and goals set out in the CFMEU 2025 – 2028 Strategic Plan.

The Strategic Plan outlines a ten-step action plan for the union while under administration, including relevantly:

• ensure every branch is viable within the new national structure;

• develop national codes of conduct for all staff and delegates;

• develop national policies guiding budgets and finance, reporting to members and regulatory compliance;

• develop training and education on ethics, integrity and recognising and eliminating corruption;

• investigate credible allegations of corruption and refer to external agencies as appropriate;

• establish a National Education and Integrity Unit;

• advocate for laws and policies that reveal the underlying drivers of corruption in the construction industry ie. overuse of labour hire;

• identify underlying cultural issues that lead to corruption; and

• establish processes and advocate for structural changes to seek to minimise or eliminate the involvement of outlaw motorcycle gangs and organised crime in industrial relations in the construction industry.

The matters set out in the CFMEU Strategic Plan reflect the Administration's current prioritisation of the ongoing investigation of corrupt and criminal conduct within the union, which will now be able to progress with certainty.  

Stakeholders in the Australian construction industry should keep a close eye on the movements of the CFMEU Administration, in particular the ongoing investigation into allegations of corruption as well as the foreshadowed advocacy for structural changes. We are expecting:

• Investigations: Investigations into corruption and misconduct on construction sites and projects may intensify, and stakeholders with a CFMEU presence on site should be prepared to receive requests for participation in those processes and ensure that their record-keeping in relation to union conduct on sites is up to date. 

• Industrial planning: Long-term, the clarity around the Administration Legislation may provide stability in the sector. In the short-term however, while the CFMEU remains operational under the leadership of Mark Irving KC, those companies and workers who held strong relationships with the former leaders, may seek representation elsewhere. Impacts of such movements may include the re-agitation of settled disputes, or escalation of ongoing disputes.

• Procurement planning: The Administration has promised sweeping reforms within the CFMEU. However, the Federal Government is also progressing their own agenda in tandem. Any new laws or policies introduced (including Federal Government audits of  government spending) and policies aimed at addressing underlying corruption should inform forward-facing procurement planning.