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The Health Services Union expenses affair is an Australian political scandal concerning allegations by Fair Work Australia that various senior officials used funds of the Health Services Union to pay for personal expenses.

Health Services Union

The Health Services Union (HSU) is a specialist health union with around 60,000 members working in all areas of healthcare across Australia.

The membership of the union includes doctors, nurses and allied health professionals such as physiotherapists and radiographers, ambulance officers, clerical and administrative staff, managers and support staff.

Inquiries and investigations into the HSU

In April 2009, accounting, auditing and advisory firm Pitcher Partners undertook a report into the financial affairs of the Victorian HSU branch No.1. The report was critical of the cavalier approach taken by senior HSU officials to signing blank cheques, sharing electronic passwords for expenditure, and approving union spending with verbal authorisations rather than putting these matters in writing.

Slater & Gordon and BDO Kendall Report - 2009

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The Temby and Robertson investigation

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Fair Work Australia inquiries

Fair Work Australia (FWA)—Australia's industrial relations regulator — investigated allegations of financial impropriety involving both the Victorian No.1 Branch, and the National Office of the Health Services Union. Terry Nassios, a senior Commonwealth public servant, was delegated by the General Manager of FWA to investigate and report under section 331 of the Fair Work (Registered Organisations) Act 2009.

On December 23 2011 Nassios produced the Victoria No.1 report, which was not released publicly until March 16, 2012. However his National Office report, consisting of 183 findings, was tabled in the Australian Senate on May 7, 2012. Within the National Office report, 153 findings pertain to Craig Thomson's alleged breaches of union rules and sections 237(1), 285(1), 286(1), and 287(1) of Schedule 1 of the Workplace Relations Amendment (Registration and Accountability of Organisations) Act 2002.

The FWA investigations have been criticised for failing to investigate the finances of the HSU following a petition by HSU No.4 Branch members in July 2009.

HSU officials named in the FWA inquiries

Jeff Jackson

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Kathy Jackson

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Craig Thomson

Thomson was elected as the National Secretary of the Health Services Union (HSU) and held that position from 2002 until 2007. In 2007 Thomson was elected as the Australian Labor Party (ALP) candidate for the seat of Dobell on the New South Wales central coast. He was re-elected in 2010.

The Fair Work Australia report concluded that Thomson had spent almost $270,000 of HSU funds on his 2007 election campaign to win the seat of Dobell on the NSW Central Coast. This included $200,000 for two staffers who worked on the campaign, and another $71,000 directly expended on the campaign. Other money, including from Thomson's union credit card, was used to pay for office supplies including furniture and utility connections.

Following his successful election campaign at the 2007 federal election Thomson resigned from the HSU on 14 December 2007. On 18 May 2012 it was reported that Terry Nassios, the Fair Work Australia investigator said he was unsure if some payments had been made on the card after that date and that he was recommending the payments after the resignation date be reported to the public prosecutor for investigation.

In his speech to the House of Representatives on 21 May 2012 Thomson said that there were credit cards which showed expenditure on escorts and prostitutes for at least two other officials. He implied that Jeff Jackson, a former HSU executive member and the former husband of HSU National Secretary Kathy Jackson was one of two officials responsible for the spending on prostitutes, a claim earlier made by HSU branch president Pauline Fegan.

Craig Thomson questioned the impartiality of the investigation. Michael Lawler the Vice President of FWA was involved in internal HSU politics at the request of his partner Kathy Jackson. Jackson allegedly supplied most of the documents used by the FWA in its HSU National Office investigation.

FWA's Terry Nassios, citing a newspaper report, stated $15,000 had been repaid by Jeff Jackson in settlement of three payments of $5,000 identified as "back pay" dishonestly claimed. When asked by Fair Work Australia to clarify if this claim pertained to Jackson, Thomson declined to provide any details, citing legal advice.

Michael Williamson

Michael Williamson served in dual capacities within the HSU - as the National President of the HSU, and the General Secretary of the HSU East Branch - until all positions were declared vacated by the Federal Court in 2012. He was named in the Temby report as engaging in irregularities, such as placing family members in union jobs, paying inflated prices for services, and heading a company supplying information technology services to the union.

Role of external bodies

Australian Council of Trade Unions

On 15 May 2012, ACTU president Ged Kearney addressed the ACTU congress on the HSU scandal. "I know I speak for everyone in this room when I say that misuse of member's money and contempt for the accountability to members are unacceptable", she said. Union figure Paul Howes stressed the positive, saying, "I'm actually pleased that we know that this happened because it's the lesson for us is making sure it never happens again and never allowing a couple of disgusting individuals get away with stealing money out of the pockets of hard-working, low-paid health workers or any other union members in this country."

During Question Time on 16 August 2011, Prime Minister Julia Gillard was asked if her confidence in Craig Thomson was based on a thorough investigation of his credibility. She replied, "I have complete confidence in the member for Dobell. I look forward to him continuing to do that job for a very long, long, long time to come."

Addressing an ACTU congress on 15 May 2012, Gillard said of the HSU's impact on the Australian union movement's reputation, "...the very poor conduct of one union risks tarnishing that reputation."

Plans for reform

Paul Howes, addressing the ACTU congress on 16 May 2012, said, after defending union skills in hunting down unscrupulous employers, "If we have a dodgy trade union official who rips off those workers, we need to hunt them down too, hunt them down too to make sure they pay back what they took from the hardworking men and women of the Health Services Union."

Julia Gillard spoke in support of a parliamentary code of conduct, saying, "I do want to see members of Parliament always doing the right thing. There are various rules now for members of Parliament but I'm obviously open to suggestions that we have a code of conduct." Independent MP Tony Windsor flagged action along with Rob Oakeshott to increase Parliament's powers to deal with cases such as Thomson's. "I think that there is a need for, if people are proven to be guilty in some of these circumstances, that Parliament may need some greater power or have a process where they actually leave the building", he said.

References

1. Grattan, Michelle. "Threat to PM's numbers". The Age. Retrieved 10 May 2012.
2. "Craig Thomson union credit card rort paid for brothels". Smh.com.au. 8 April 2009. Retrieved 21 August 2011.
3. "HSU: Anatomy of a Labor nightmare". ABC News. 15 May 2012. Retrieved 24 June 2012.
4. "Call for administrator as HSU membership plummets". Sydney Morning Herald. 26 May 2012. Retrieved 24 June 2012.
5. Norington, Brad (11 April 2009). "Cash flows put union in a jam". The Australian.
6. Crook, Andrew (28 May 2012). "ProbeWatch: 16 HSU investigations and counting". crikey.com.au.
7. ^ Higgins, Ean (8 May 2012). "Escorts and campaign funds 'put on Craig Thomson's card'". The Australian. Retrieved 14 June 2012.
8. Wright, Jessica (17 March 2012). "Damning report of misuse of funds in health union". The Age.
9. Nassios, Terry. "Investigation into the National Office of the Health Services Union" (PDF). Report of the Delegate to the General Manager of Fair Work Australia. Fair Work Australia. p. 133. Retrieved 10 May 2012.
10. Millar, Royce (13 September 2011). "Fair Work refused to investigate HSU books". The Age. Retrieved 7 June 2012.
11. "Mr Craig Thomson MP Dobell". ABC News. Retrieved 24 January 2010.
12. "Labor wins marginal Dobell". ABC News. 24 November 2007. Retrieved 24 January 2010.
13. Jones, Gemma (8 May 2012). "HSU cash spent on election campaign". Daily Telegraph. Retrieved 17 May 2012.
14. "Commonwealth of Australia Legislative Election 24 November 2007". Retrieved 24 January 2010.
15. Nicholson, Brendan (8 May 2012). "Craig Thomson still spending long after departure from HSU". The Australian. Retrieved 17 May 2012.
16. "Hansard, May 21, 2012". Parliamentary Debates (Hansard). 21 May 2012. Retrieved 08 June 2012. {{cite book}}: Check date values in: |accessdate= (help)
17. ^ Wallace, Rick (9 April 2009). "Second Labor figure Jeff Jackson embroiled in union brothel scandal". The Australian. Retrieved 8 June 2009. Cite error: The named reference "Fegan" was defined multiple times with different content (see the help page).
18. Uhlmann, Chris (29 May 2012). "Senior Fair Work official embroiled in HSU fighting". ABC News. Retrieved 7 June 2012.
19. Schneiders, Ben (4 July 2009). "Chief of strife-torn union promises to pay back $15,000". The Age. Retrieved 17 May 2009.
20. "Federal Court splits up HSU East branch, sacks leaders, Refuses Kathy Jackson bid". Retrieved 24 June 2012.
21. "ACTU Responds to HSU Report". 1 May 2012. Retrieved 24 June 2012.
22. Richardson, Graham (9 April 2012). "Foul stench from snouts in HSU trough". The Australian. Retrieved 24 June 2012.
23. Cullen, Simon (16 May 2012). "Gillard pledges allegiance amid HSU scandal". ABC News. Retrieved 16 May 2012.
24. Sheehan, Paul (22 August 2011). "Thomson saga sinks Labor into the abyss". Sydney Morning Herald. Retrieved 16 May 2012.
25. Lucas, Clay (15 May 2012). "Gillard hits out at Abbott, HSU". Sydney Morning Herald. Retrieved 16 May 2012.
26. Iggulden, Tom (17 May 2012). "Kelty points finger at Labor amid union woes". ABC News. Retrieved 17 May 2012.
27. "Gillard flags code of conduct amid Thomson affair". ABC News. 14 May 2012. Retrieved 17 May 2012.

External links

• Template:PDFlink

• Report of the Delegate to the General Manager of Fair Work Australia -Investigation into the Victoria No.1 Branch of the Health Services Union under section 331 of the Fair Work (Registered Organisations) Act 2009 - 23 December 2011 PDF, 6715KB

• AEC releases analysis of Fair Work Australia report Australian Electoral Commission, 16 May 2012.

• Brown v Health Services Union, FCA 644 (21 June 2012) - Reasons For Judgment of Flick J in the Federal Court of Australia

• Misplaced Pages neutral point of view disputes from June 2012
• Use dmy dates from June 2012
• Political controversies in Australia
• Financial scandals