Individuals will face a civil fine of $188,000 for failing to comply with an administrator for the Construction, Forestry and Maritime Employees Union, while those intentionally hindering the process will face a criminal penalty of almost $940,000 and two years behind bars.
Union branches found to frustrate the process can face up to almost $4.7 million in fines.
Workplace Relations Minister Murray Watt kicked off the new parliamentary session on Monday by tabling laws to force an administrator on the CFMEU's construction and general division, following allegations of criminal activity.
Murray Watt told parliament bullying and intimidation is unacceptable in any workplace. (Lukas Coch/AAP PHOTOS)
The administrator would have the power to manage and operate the division and its properties and take all necessary action to manage its affairs, Senator Watt said.
"There is no place for criminality or corruption in the construction industry and bullying, thuggery and intimidation is unacceptable in any workplace," he told the Senate while introducing the laws.
Senator Watt rejected a coalition push to have the union deregistered, saying it wouldn't stop it from conducting industrial activities.
"Placing the construction and general division into administration would maintain the regulation and additional oversight that applies to registered organisations," he said.
Opposition workplace relations spokeswoman Michaelia Cash wanted the laws strengthened.
"I've seen the legislation, and you can currently drive a truck through it," she said.
She chastised Labor for turning a blind eye to the construction union over the previous decades and only acknowledging allegations of wrongdoing after a series of media reports in July.
"Labor is not sincere when it now pretends to be concerned by the conduct of the corruption, the fraud, the misogyny and the bullying, intimidation and thuggery within this union," she said under parliamentary privilege.Â
Zach Smith accuses the government of stripping the union's right to a fair process. (Mick Tsikas/AAP PHOTOS)
CFMEU national secretary Zach Smith criticised the government for riding over internal processes to sift through the criminal allegations.
Labor has "undermined the legal process and stripped us of our rights to a fair process," Mr Smith said, after the union had stood people down pending investigations and brought in an independent anti-corruption tsar to investigate.
The Business Council of Australia has also called for the legislation to go further and include protections for non-union whistleblowers and other stipulations.
Those with a criminal record or who had previously breached workplace laws needed to be barred from holding a position within the union, chief executive Bran Black said.
"We are worried the government's CFMEU legislation will not be strong enough to stamp out criminality and bad behaviour which is crippling worksites and the economy", Mr Black said.
Labor is aiming to have the legislation voted on in the Senate as early as Tuesday.
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