Unions spent millions to prop up Labor before the last federal election

EXCLUSIVE: AUSTRALIA’s most powerful unions are bleeding cash after spending millions of members’ money to prop up Labor before the last election.

An investigation into union finances by The Daily Telegraph has discovered some of the nation’s unions have plunged into financial loss on the back of plump political donations. Picture: John Grainger

AUSTRALIA’s most powerful unions are bleeding cash after spending millions of dollars of members’ money to prop up Labor before the last federal election.

An investigation into union finances by The Daily Telegraph has discovered some of the nation’s unions have plunged into financial loss on the back of plump political donations.

The heavyweight Australian Workers’ Union (AWU) — once controlled by Opposition Leader Bill Shorten — lost a staggering $773,830 in the last financial year, after donating $173,140 to Labor before the election.

The Shop, Distributive and Allied Employees’ Association (SDA) recorded a $385,435 operating loss in the 2015-16 financial year after ploughing a whopping $948,726 into Labor coffers.

Thousands of people gather on Macquarie St, as part of Trade Union protests against Abbott government. Pic — Britta Campion

Labor Party disclosures to the Australian Electoral Commission (AEC) show the union donated a whopping $948,726. The union also handed the ALP $1.8 million in “affiliation fees’’.

SDA national secretary Gerard O’Dwyer said the union made a $72,117 profit in 2015-16 once interest from investments was added to the operating loss. He said the union’s biggest expense had been $1.2 million in legal fees defending penalty rates at the Fair Work Commission.

AWU national secretary Daniel Walton blamed his union’s deficit on legal costs relating to the Coalition government’s “politically motivated’’ Royal Commission into unions.

Former prime minister John Howard is jostled and heckled by union protester earlier this month in Sydney.

The Community and Public Sector Union (CPSU) lost $930,939 during 2015-2016, which it described as a “modest 2.8 per cent budget deficit”.

In a financial report filed with the Fair Work Commission (FWC), the CPSU said the deficit was required “to meet increased member needs”.

The CPSU spent $206,290 on affiliation fees to the ALP during 2015-16 — on top of $127,570 in donations.

United Voice, representing some of Australia’s lowest-paid workers in cleaning, hospitality and childcare, recorded a $7546 deficit during 2015-16 — compared to a $267,584 surplus the previous year.

The union bankrolled Labor with $839,028 in direct donations during the year.

AWU national secretary Daniel Walton

AEC records show the Labor-affiliated union also spent $676,753 on political campaigning. “United Voice often runs operating deficits as we need to provide assistance to our members when issues such as penalty rates cuts arise,’’ a spokeswoman said.

IN OTHER NEWS

The NSW branch of United Voice had an operating deficit of $261,555 last financial year.

It gave $1.2 million to its central office, paid an $85,046 affiliation fee to the ALP and gifted $173,609 in grants and donations.

The National Union of Workers (NUW), which represents workers in the warehousing and manufacturing sectors, lost $517,474 in 2016, its latest financial report reveals.

The NUW gave $628,700 to the ACTU and $25,000 to the ALP last year.