AREEA has called for Labor, Greens and crossbench Senators to explain why members of unions and employer groups should not be afforded proper protections and transparency around the use of their funds, after legislation that would strengthen the accountability of registered organisations was blocked.

The Fair Work (Registered Organisations) Amendment Bill 2014, which seeks to increase the accountability and governance standards of union and employer group officials, was voted down by Labor, the Greens, the Palmer United Party and independent Jacqui Lambie in a 33 to 30 vote.

“The question must be asked as to why Labor, the Greens and the Palmer United Party would vote down legislation that seeks to afford greater protection to members of trade unions and other registered organisations,” says AREEA chief executive Steve Knott.

“We’ve experienced a very unedifying period in our industrial relations history that has seen the union brand tarnished with convictions of former officials along with a plethora of evidence of corruption and the misappropriation of funds from the Trade Union Royal Commission.

“After such events, union members could not be blamed for losing faith in the very organisations that purport to represent their interests. It does not send a positive message to union members when Labor and minority parties insist on treating their officials as a protected species.”

The Senate defeat marked the Abbott Government’s second unsuccessful attempt to introduce the Bill within the past 12 month. If successful, it would have enforced greater financial transparency and penalties on unlawful behaviour by officials through the:

• Establishment of the independent Registered Organisations Commission to monitor and regulate registered organisations;
• Tightening of rules around the disclosure of personal interests and grounds for disqualification an ineligibility of office;
• Strengthening of existing financial accounting, disclosure and transparency obligations; and
• Increase of civil penalties and introducing criminal offences for serious breaches of duty.

While noting these proposed new rules are ‘a step in the right direction’, AREEA’s strong view is that the Abbott Government’s proposed measures do not go far enough.

Mr Knott says officials of registered organisations that ethically represent their members and use funding transparently and appropriately would have nothing to fear from being subject to the same rules as corporations.

“Registered organisations often manage tens of millions of dollars in members’ funds. There is no reason why they shouldn’t be held to the same account as any company in Australia,” he says.

“Rather than be regulated by the Fair Work Commission or any other body offering special treatment, registered organisations should simply come under the jurisdiction of Australia’s corporations laws and be regulated by our effective corporate watchdog, ASIC.

“It does not send a positive message to the dwindling population of Australian union members when the Labor Party, Greens and minorities such PUP insist on still treating union officials as a protected species.”

The penalties for offences committed by corporations and registered organisations areas follows:

 

	Penalties for Offences
Section 184 of the Corporations Act 2001	$200,000 for individuals and up to five years’ jail
Sections 287 and 288 of the Fair Work (Registered Organisations) Act 2009	$6,600 for individuals $33,000 for a body corporate (including a trade union)

 

“The stark difference in penalties shows why the Senate needs to get serious about protecting members of registered organisations from unethical and illegal behaviour,” Mr Knott says.

AREEA is voluntarily incorporated under the Corporations Act 2001 and is audited annually by a top four accounting firm.