Senate Education and Employment Legislation Committee, , 7:43:26 to 7:54:24
Senators scrutinize the Fair Work Commission's annual report, noting a lack of new investigations and infringement notices during the reporting period.
Topics: Workplace relations, Integrity
Speakers: Senator Maria Kovacic, Murray Furlong, Patrick Coyle, Senator Jane Hume, Senator Marielle Smith
I I do have a follow-up now as a result of this. Mr. Furlong, um is there anything in the report and Senator Hume asked a similar question that is concerning to the Fair Work Commission
or that isn't as you would like it to be allowed to answer the question is bordering on opinion in my mind,
If if they well, if I wrote an if I was um on a board of directors and we had an annual report and I'd published and and submitted that annual report, and I was asked by a shareholder, um is there anything that worries you in that report? I would go, well, actually, I'm concerned about XYZ or a risk management or whatever it is.
My view is chair is that borders on opinion, but I'm not preventing Mr. Furlong from answering it. It's up to him if he does.
Um I'm comforted by the fact that over 18 months to years of significant disruption to the operation of the Commission from the impact of AI and other changes to our users, that the organisation leaned in and evolved and changed at pace, um, dealt with the ambiguity, implemented new systems, and now has case management practices and systems in place and um to manage this elevated workload. Um we are thankful to government for allowing us to run an operational loss last financial year to support these efforts to get the Commission to a point where it's got the internal capabilities and systems to deal with this significant increase in work and change in the nature of the work. Um on the with change and significant change comes ambiguity and come stress. Um and I would like to say that is only on behalf because of the the members that like the tireless efforts of the members and the staff of the Fairwork Commission, have we been able to navigate this change and the ambiguity that comes with it and the stress and one of the things that is the oppressive nature of the workload in addition to all the change that we've driven through the organisation, our one of our performance metrics from our annual report, the corporate plan about employee engagement dropped by three three percentage points, um, and that's something that as we come out of this period of massive disruption, the organisation. I'm very much looking forward to um working to to improve in the uh in the current financial year.
So your report records zero new investigations commenced under part four of chapter 11 of the registered organisations act in 2025-2026. Given the continuing allegations of corruption and misconduct across registered organisations, can you give us some insight as to why new no new investigations commenced? And that's on page 44 of the annual report.
I might ask Mr. Cor to start here and then we'll um we uh then I'll continue.
it references no infringement notices for that same period, and I'd be interested in some insights on whether that reflects improved compliance or a lack of enforcement and perhaps as an example as we discussed earlier with the CFMEU, if you're not receiving the information from the administrator, it makes your um regulatory um responsibilities much more difficult to navigate.
Senator Um you correctly identify the what's disclosed in the report. We um have during the relevant period engaged in significant enforcement activity. We have commenced a couple of uh civil penalty litigations that arise out of investigative activities, and we continue to work on um some substantial investigations that are moving forward that result from information that we have received. We also have several matters that are in pre-investigation stage, and we have um commenced uh an investigation since the reporting period that's the subject of this matter actually to two investigations since this reporting period that we're talking about.
Okay, so is the answer that um because you're already conducting substantive investigations, there were no new investigations during that period, but you're carrying out other investigations and you have begun two new investigations since the beginning of this financial year.
Yes, Senator.
Okay.
Do you mind if I just add to that? So not only is it the investigations just one metric, one regulatory activity that we undertake in relation to the CFMU, and this is since June 20, the last time we were here. I think it's important that I go through this because it will give you a sense of the scale of the operations that the under the Commission has undertaking in relation to this particular issue. So there are four investigations into alleged conduct, a former CFMU construction general officials.
Yes, the one on page 45. Yeah. I was quite interested whether that one has concluded and what the findings were given that um it concerned alleged use of union funds for senior officials' criminal defences and conduct preventing the effective administration of the union. So what happened there?
Senator, I think the one that you're referring to is uh an investigation that's currently ongoing.
It's still ongoing, so it hasn't been concluded. Have you come across that anywhere else where members' funds are being used to fund senior officials' um criminal defences?
Um it's we're aware anecdotally of uh you know uh a range of matters across many years where the union has um paid for um legal fees associated with the work involved with. Their officials, but uh this is the only matter that we're presently aware of that relates to uh a corrupting benefits matter.
Okay, yes. And in the past two years, has the um administrator alerted to you of any such uh instances that they've come to be aware of?
No additional matters. This was a matter that was previously investigated by Jeffrey Watson SE.
Okay, and and finally um your report um records at page 114, and I'm very disappointed that we've only just seen it, that seventeen applications for certificates that could allow people subject to CFMEU administration restrictions to hold office or be employed by registered organisations, which is a concern for me given the purpose of the administration, which is to get these people out of unions and out of the construction sector. Can you tell me how many were approved and how many involved former CFMEU officials?
Senator, I've got up-to-date figures in relation to that matter as of today if you were interested in those.
I am very interested.
Rather than um, what would the position was? Is it the 30th of June? Um there have been 31 applications in relation to the various certificates, but they relate to 13 individuals.
Okay, so 13 individuals. There is 31 variations.
There are three different types of certificate that you're able to apply for, one relates to employment, one relates to becoming an officer in another organisation, and one relates to the ability to be an uh bargaining representative. Uh so those 13 individuals um have applied in the two years and three months since this scheme came into effect, those matters go and I heard before a commissioned member. Um obtaining various certificates that they've applied for, and one matter was withdrawn.
Okay.
Chair, I just want to note that according to this report, the letter of transmitter went to the Minister on the 6th of October. It is now the 28th of October. That means that there have been nine sitting days when this document could have been tabled.
Yeah. And I would suggest to finish, and I'm happy to have a response that the reason that this was tabled when it was expected that the witnesses were no longer at the table is the report states no new registered organisation investigations, not a single infringement notice, and serious CFMEU investigations still unresolved.
Is anyone seeking to respond to that? It's not really a question.
I think that's an inaccurate description of the operations of the organisation. Um I think that while and I'm very happy to go through, I'm happy to sit here for as long as you wish for me to explain the extent of the operations of the organisation, the regulatory functions and what we've undertaken in relation to the CFM EU and administration and playing our part in improving workplace relations, but also conduct more broadly in this industry. Um and I think that it's uh it's a it's an unfair and untrue and an unfair assessment.
If the government, if the minister had have been honest and upfront and transparent and allowed this document to be tabled, we could have done exactly that with you, Mr. Furlong. But instead, we haven't got the time to do that. We can only take these statistics on face value.
Yeah, and and to note what I've stated is not something I have made up. Page 44 says zero new investigations. Page 46 says zero infringement notices, and page 45 identifies two CFMU investigations still ongoing. So that is that is how I've captured that information. So I have not made that up. It is not a mistruth. What I've said has come from this document, and I granted um I haven't been able to peruse it in great detail, uh, nor have has our team, but that is the reality of it. So that is it from government.
Does anyone would like would you like to respond? That will remind people it's much easier to follow this process if it's a question and answer style session. But Mr.