CFA crisis: United Firefighter Union payment to ex-Victoria Police Association boss revealed
UPDATE: HEALTH sector executive Frances Diver has been named as the CFA’s new chief executive, just four hours after Lucinda Nolan resigned.
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HEALTH sector executive Frances Diver has been named as the CFA’s new chief executive, just four hours after Lucinda Nolan resigned.
CFA chairman Greg Smith confirmed Ms Diver’s appointment by the board online at 7pm - just six hours after Lucinda Nolan resigned.
A former deputy secretary with the Department of Health and Human Services, Ms Diver has had oversight of Victoria’s hospitals and ambulance systems for the past five years.
Joe Buffone will continue in the chief executive role until June 27, when Ms Diver will take over.
The new CFA board was announced as the Andrews Government push to end the firefighters pay dispute.
Emergency Services Minister James Merlino unveiled the five appointments in Cranbourne today.
It comes as CFA CEO Lucinda Nolan has resigned her position.
However questions have already been asked about the boards independence after Mr Merlino admitted a precondition for new board nominees to support ending the dispute quickly.
It has also been revealed the United Firefighters Union paid $127,000 to help bankroll legal action by ex-Police Association boss Paul Mullett in his high-profile dispute with former top cop Christine Nixon.
“My expectation is that this board will make a fresh start and that means ending this dispute,” Mr Merlino said.
“The board will work through finalising our agreement.
He would not affirm the future of CFA chief Lucinda Nolan saying it was “a matter for the board”.
“This is about a fresh start,” he said.
“Today it’s a significant step forward. A new board to deliver increased community safety for Victoria.”
Mr Merlino announced five of the immediate appointments but said the four volunteers would be appointed by the VFBV as soon as possible.
Meaning the deal may not be signed off for several months.
“It’s my intention we get the volunteer reps on as soon as possible.”
It is understood sacked board members have not yet received the official news.
The new chair will be Greg Smith a former Fair Work Commissioner.
The Deputy Chair will be Michelle McLean a member of the Victorian Chamber of commerce.
The Herald Sun revealed today that lawyers for Paul Mullett — a part-time employee of the UFU and long-time associate of its secretary, Peter Marshall — were paid the massive sum in a deal that sees him pay the money back without any interest bill.
In testimony to the Supreme Court last month Mr Mullett, who is suing Ms Nixon and two others, for “malicious prosecution”, was quizzed about three payments to his lawyers totalling $127,000. But, despite revealing the UFU is deducting $741 a fortnight from his salary of $47,000 a year at the union, he denied it was a loan.
The legal fight has nothing to do with the UFU and the Herald Sun understands the decision to bankroll the action has caused tension within union ranks.
Today’s revelations will bring the CFA crisis spotlight on to Mr Marshall. Under the government-backed union takeover of the CFA, Mr Marshall will be given the keys to effectively control much of the volunteer service and provides him with a massive boost to his power base.
The emergence of the $127,000 deal raises questions about how the union conducts business under his leadership.
It will intensify pressure on Premier Daniel Andrews over his decision to ram through the pro-union industrial deal.
In a radio interview this morning Mr Marshall repeatedly declined to comment on the payment and whether there was concern in the union.
“That matter has been clarified with our auditors,’’ he told Neil Mitchell on 3AW.
“It is a salary arrangement and that is a matter between (Paul Mullett) and ourselves.’’
The 14-minute interview reached boiling point when Mr Marshall flatly refused to answer questions regarding the ongoing pay dispute and told Mr Mitchell to run positive stories on fire crew rather than report the pay negotiations.
Mr Mitchell responded by saying the UFU was acting like thugs, which prompted Mr Marshall to call the well respected presenter a shock jock.
Mr Marshall later withdrew his comment admitting Mr Mitchell was a “professional journalist’’.
Despite refusing to answer questions Mr Marshall said he was not trying to spin the issue.
He also claimed the UFU had dropped 120 claims already in the dispute resolution but would not list any on radio.
“I am happy to do that another time, what I want to see is a professional firefighter on your show,’’ he said.
The use of massive union funds to bankroll the unrelated legal action of Mr Mullett will ignite a new front in the political firestorm engulfing the Andrews Government
Mr Mullett has been employed by the UFU since 2009 to help it negotiate EBA agreements.
Workplace legislation mandates that unions can only make loans with the approval of its branch committee and must be declared in their financial statements.
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Asked last month in the Supreme Court if the arrangement was covered by a formal written agreement with the UFU, Mr Mullett answered: “No.” But later in the case when UFU boss Peter Marshall was quizzed by lawyers for the defendants he denied the union had made any payments directly to Mr Mullett’s lawyers.
He said the payments were part of Mr Mullett’s employment arrangements.
“We haven’t paid directly any legal fees. We actually have entered into an employment arrangement, it’s all documented and minuted and that’s been done with our auditors,” he told the court.
He denied the money was a loan.
“It’s not a loan, but I think the union has been very lucky to secure his services,’’ he said.
In recent days the Herald Sun has been contacted by UFU members concerned about the payment.
In an email to Mr Marshall earlier this month one UFU member wrote that it “was never confirmed, to the satisfaction of myself and the membership whether or not the money owed to the UFU was repaid in full”.
Last night, shadow attorney-general John Pesutto called for a probe into the deal.
“This financial arrangement clearly points to the urgent need for a proper and independent investigation into the running of the UFU and its internal governance processes,” he said.
“This union manages to wield enormous power over the CFA and MFB, which are essential public services, while being subject to no independent oversight.
“Yet Daniel Andrews is recklessly trying to hand over to this union complete control of the CFA and its 60,000 volunteers.”
Ms Nixon suspended Mr Mullett from Victoria Police in 2007 over allegations of perjury, but the charges were dropped in 2009 through lack of evidence.
In the proceedings Chris Caleo, QC, for Ms Nixon, produced documents that showed the United Firefighters Union had paid $127,000 to Mr Mullett’s lawyers to fund the case.
The union hired Mr Mullett in November 2009 to assists in advocacy, bargaining and political advice.
Mr Marshall said the pair had met in their role as union bosses in 2001 and had become friends.
“Initially there was questions asked in relation to Mr Mullett’s appointment on myself by members because of that publicity and suggestion that he was somehow involved in a corruption, but they are very happy with his appointment.’’
Mr Mullett said that as the matter was before the courts he had been advised his lawyers not to discuss it.
MORE:
OPINION: BOARD GAMES BEGIN IN CFA BATTLE
VIC HEALTH MINISTER SAYS NO DIVISION IN CABINET OVER CFA
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MAY 12: MULLETT
The new CFA board members
Chair Greg Smith AM
Mr Smith is the principal of G R Smith and Associates, with decades of experience in industrial arbitration and conciliation. Mr Smith was a Commissioner for the Fair Work Commission and its predecessors for almost three decades, under successive Federal Governments, and was made Deputy President in 2012. He has worked extensively for international organisations, including the United Nations, and was an advisor to the South African Commission for Conciliation, Mediation and Arbitration. He is currently a board member of Ambulance Victoria and Life Education Victoria.
Deputy Chair Michelle McLean
Ms McLean is the CEO and Partner of Cornwall Stodart Lawyers and an expert in finance, governance and people management. She is on the executive council of the Victorian Chamber of Commerce and is a member of the Royal Agricultural Society. Ms McLean has previously been a board member of the Mercy Health Foundation, and is a former President of the Australian Legal Practice Management Association.
Dr Gillian Sparkes
Dr Sparkes is the Commissioner for Environmental Sustainability in Victoria and was originally appointed to the position by the previous Coalition Government. She is an expert in public sector management and stakeholder engagement. Dr Sparkes has held senior positions in the private sector with BHP and Brambles, and the public sector with WorkSafe Victoria and the Department of Sustainability and Environment. Dr Sparkes has previously served on the board of South Gippsland Water and as Chair of Sustainability Victoria.
Pam White
Ms White is the Chairperson of the Victorian Registration and Qualifications Authority, and has extensive public service experience. She is a former CEO of the State Services Authority, and served as the State Recovery Coordinator in the Department of Human Services. Ms White was appointed as an adviser to the Victorian Flood Review by the previous Coalition Government and also served as CEO to the Victorian Reconstruction and Recovery Authority after the Black Saturday bushfires.
Simon Weir
Mr Weir is a barrister with more than thirty years’ experience in workplace law. He has worked as a Partner of Slater and Gordon and was a Senior Legal Counsel for the Victorian Workcover Authority. Mr Weir has consulted for Wisewould Mahony and was a senior associate for Hall and Wilcox.
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