2. INTRODUCTION
What we will cover today
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• Analysis of recommendations
• Implications for you
• Q & A
Royal Commission into Trade Union Governance and
Corruption Report
3. STATISTICS
Some interesting facts
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• 189 days, 155 of these days were public hearings
• Report:
– 6 volumes
– Over 3,878 pages (NB the sixth volume is confidential)
– Volume 5 Law Reform and Policy
Royal Commission into Trade Union Governance and
Corruption Report
4. ROLE
of Trade Unions in Australia
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• Assisting members and improving society
• Commercial role
• Statutory role in Industrial Relations’ system
• Political role
Royal Commission into Trade Union Governance and
Corruption Report
5. RECOMMENDATIONS
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• New registered organisations regulator
• Independent, stand alone
• Commonwealth funded and resourced
Royal Commission into Trade Union Governance and
Corruption Report
6. POWERS
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• Make inquiries and conduct investigations as to whether
criminal offence
• Information gathering and investigatory powers similar to
ASIC
• Take action in respect of breach of rules
• Power to agree enforceable undertakings
Royal Commission into Trade Union Governance and
Corruption Report
7. FINANCIAL
Accountability
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• Approved training
• Apply to all members of management of organisation/branch
and employees with duties of financial management
• Must undertake approved training
• Regulators power to disqualify person for up to two years
Royal Commission into Trade Union Governance and
Corruption Report
8. FINANCIAL
Policies
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• Need to have financial policies to disclose to members
• Financial compliance officers
• Registered auditors
Royal Commission into Trade Union Governance and
Corruption Report
9. RECORD KEEPING
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• Minutes recording management committee meetings and
resolutions
• Need to keep financial records
Royal Commission into Trade Union Governance and
Corruption Report
10. EXTENDED PROTECTION
of whistle blowers
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• Requirement to investigate within set period
• Adverse action vs whistle blower extended
• Injunction/apology/reinstatement
Royal Commission into Trade Union Governance and
Corruption Report
11. USE OF UNION FUNDS
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• Prohibit use to support candidate for election in union
Royal Commission into Trade Union Governance and
Corruption Report
12. OFFICER OF TRADE UNION
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• Officer of Trade Union
– Decision maker
– Ability to affect financial standing
– Give direction
• Duties in Queensland
– State registered organisations
– Subject to criminal penalties
– Industrial Relations Act
• Recommendations
– General law duties
– Disclosure of interests/conflicts
– Increase in civil penalty and criminal liability and prohibits trade union reimbursements
– Disqualification
Royal Commission into Trade Union Governance and
Corruption Report
13. OUTLAWING
Corrupting benefits
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• Require trade unions to lodge audited financial disclosure
statements
• Loans, grants and donations (and “in kind”) in excess of
$1,000
• Criminal offence to give or receive corrupting benefit
Royal Commission into Trade Union Governance and
Corruption Report
14. FUNDS
Election or worker entitlements
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• Prohibition on term requiring Employer to deduct an amount
from an employee to pay towards election funds
• Election funds and worker entitlement funds to be registered
and regulated
Royal Commission into Trade Union Governance and
Corruption Report
15. DISCLOSURE
of financial benefits
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• Disclosure of any benefits paid in respect of insurance
products
• Any direct/indirect benefits from Enterprise Agreements
• Prohibited deductions unless to regulated fund / charity
• Prohibiting action / threat to coerce payments to particular
funds (freedom of choice of Super)
Royal Commission into Trade Union Governance and
Corruption Report
16. ANTI COMPETITIVE CONDUCT
by Trade Unions
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• Increased secondary boycott penalties
• Easier to prove conduct
• Immunity if report conduct
• Building and Construction Regulator have power to
investigate concurrently with ACCC and enforce
• Anti competitive conduct in Enterprise Bargaining outlawed
Royal Commission into Trade Union Governance and
Corruption Report
17. INDUSTRY REGULATORS
for building and construction
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• Compulsory investigatory and information gathering powers
• Increased penalties for picketing, coercion and prohibited
industrial action in Fair Work Act – 1000 penalty units
Royal Commission into Trade Union Governance and
Corruption Report
18. RIGHTS OF ENTRY
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• Increased penalties for abuse of ROE to 1000 units
($180,000) in both Fair Work Act and Workplace Health and
Safety Act
• Additional permit qualification matters and required annual
training
• Fit and proper person
Royal Commission into Trade Union Governance and
Corruption Report
19. WORKPLACE HEALTH & SAFETY
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• Prior written notice of ROE except:
– Reasonable concern contravention of Act and serious risk/immediate or
imminent exposure to hazard
• Burden of proof on permit holder
• No more than 2 permit holders at any one time
• Leave within reasonable time
Royal Commission into Trade Union Governance and
Corruption Report
20. Questions?
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Alan Strain
Partner
Mullins Lawyers
T (07) 3224 0323
@ astrain@mullinslaw.com.au
Royal Commission into Trade Union Governance and
Corruption Report
