AREEA has prepared a submission that supports the passage of the Fair Work (Registered Organisations) Amendment (Ensuring Integrity) Bill 2019 following its referral to a Senate Committee for inquiry.

AREEA and its members have long supported the measures contained in the Bill, over various iterations since it was first introduced in Parliament in 2017, to improve the governance and conduct of all registered organisations in Australia – including both registered trade union and employer organisations.

Not only are the changes brought by the Bill necessary to restore regulatory balance and, in turn, regenerate public confidence in relation to the conduct and operation of registered organisations, they are consistent with a number of salient recommendations arising in the Final Report of the 2015 Royal Commission into Trade Union Governance and Corruption.

The Bill contains four measures to improve the governance and conduct of Registered Organisations which include:

1. the ability for an application to be made to have an officer of a Registered Organisation disqualified from office provides an important safeguard to ensure officials of Registered Organisations demonstrate a level of appropriate behaviour and accountability that their members and the broader community are entitled to expect;
2. the ability for an application to be made to cancel the registration of a Registered Organisation for repeatedly failing to comply with workplace laws protects the interest of members and restores public confidence that Registered Organisations are operating lawfully and to standards in line with community expectations;
3. the ability for the Federal Court to declare a Registered Organisation to be ‘dysfunctional’ and to place them into effective administration ensures the legitimate governance and transparency of Registered Organisations for the protection of members and its continued operation for its stated purpose; and
4. the reinstatement of a conventional public interest test to apply to proposed amalgamations of Registered Organisations that balances the freedom of Registered Organisations to operate without unnecessary interference with the consideration of the legitimate interest of the Australian public.

Ensuring transparency and accountability of Registered Organisations and officers who hold positions of privilege within these organisations protects the best interests of their members and the wider community. Failure to demonstrate effective accountability within Registered Organisations, which can be highly influential, damages Australia’s reputation as a place to invest and do business.

AREEA’s view is that there is no rationale that supports the exemption of Registered Organisations and their officials from similar rules of governance and conduct that apply to corporations in relation to their duties and privileges as officers of these organisations.  Those Registered Organisations capable of functioning within the parameters of the law should have no issue with the measures in the Bill being introduced that protect the rights and interests of members and the wider community.

AREEA urges the Australian Parliament to support passage of the Bill to protect everyday Australians from corruption and unlawful conduct by those they entrust to represent their interests. More broadly, the Bill would ensure influential Registered Organisations’ repeated unlawful or anti-competitive behaviour does not damage Australia’s reputation as a place to invest, do business and employ people.

The Australian Government has committed to ensuring greater compliance and lawfulness among all Registered Organisations and this Bill is the first step towards achieving this commitment.

For more information on AREEA’s submission or to provide comment or feedback please contact [email protected].