UFU reported to cops for not handing over documents

Police are set to get involved after the United Firefighters Union refused to hand over key documents at a Fair Work Commission hearing.

The powerful United Firefighters Union will be referred to the police. Picture: Aaron Francis

Australia’s industrial umpire will refer the powerful United Firefighters Union to the police after its lawyers walked out of at a Fair Work Commission hearing with the UFU refusing to hand over documents relating to a mystery $480,000 payment to the union from a fund intended to offer income protection to firefighters.

The case, which has left Fire Rescue Victoria with a potential bill of millions to the Commonwealth in Fringe Benefits Tax, concerns a trust fund established by the UFU in 2023 to offer an in-house income protection insurance to firefighters which Fair Work has found breaches the fire service’s enterprise agreement.

The documents relate to a mystery $480,000 payment to the union from a fund intended to offer income protection to firefighters. Picture: AAP

Under the UFU’s enterprise agreement FRV is obliged to reimburse firefighters for buying income protection insurance to the tune of $55.22 a week.

Until 2023 insurance payments for injury, sickness and death benefits for FRV firefighters, as well as capital benefits for various injuries and damage was provided by Protect, a scheme run by the Electrical Trades Union.

But in that year the UFU instead created a trust fund with Howden Insurance Brokers that acted as an insurer itself by collecting the firefighters’ premiums, managing those funds and making payouts to claimants up to $200,000.

The arrangement meant the UFU only has to spend around $5.50 of the $55.22 the fund was receiving each week in premiums from FRV on insurance for each firefighter.

The UFU created a trust fund with Howden Insurance Brokers that acted as an insurer itself. Picture: Tim Carrafa

FRV was concerned that the scheme had not been approved by Victoria’s firefighting service and also did not satisfy the ATO requirements leaving the fire agency liable to pay up to $7,000,000 a year in FBT on the money it was reimbursing firefighters for premiums paid to the union’s fund.

According to the Commissioners in May FRV wrote to the UFU saying it was worried “only a small amount was used to pay for income protection, and that consequently a large proportion of those contributions were likely to be subject to fringe benefits tax (FBT), with a consequential FBT liability for FRV of some $7,000,000 per year.”

To clear the matter up it asked to be given a copy of the trust deed, which the UFU refused to do.

In September 2024 however the UFU was ordered by Fair Work to hand over the document which the union refused to do until it was ordered to by the Federal Court in January this year.

Following the failure of processes to resolve the dispute, the UFU asked Fair Work to rule that the scheme satisfied the requirements of the enterprise agreement and sought to have the contents of the deed made secret, which the commission refused to do.

In the course of the hearing in front of the powerful full bench of the commission a witness for the UFU was asked to explain an item in the accounts “referred to as ‘promotion/management costs’ in the amount of $480,000”.

However, despite being ordered to produce documents explaining the payments the UFU “did not produce them” advising it would seek a judicial review of the decision “and that it would not participate further in the proceeding that day.”

When the Commissioners announced the matter would be proceeding anyway the UFU “chose to leave the hearing”.

They said the UFU’s “failure to comply with the Commission’s orders is unacceptable” saying the Fair Work act makes it clear it is an offence to refuse to produce a document.

“We will request the General Manager to refer the matter to the Australian Federal Police.” they said.

They also ruled the UFU’s arrangement was not an income protection scheme because among things the trust deed “makes no reference to income protection whatsoever.”

It also questioned the $480,000 payment to the union because it was “not entitled to a fee in relation to its role under the deed”.

“Perhaps there is a good explanation, but if there is, the UFU did not present it,” they wrote.

A spokesman for the union said the “UFU and their legal representation respectfully but vehemently disagree with the decision and will be lodging an appeal.”

A Victoria Government spokesperson said it hoped this matter can be resolved as quickly as possible by the parties so that firefighters can continue to have confidence in their income protection.

An FRV spokesperson said that the agency “acknowledges the FWC’s findings have created concern for our firefighters”.

“Consistent with the Fair Work Commission’s recommendation, FRV has written to the United Firefighters’ Union seeking an urgent meeting to commence consultation in order to reach an agreement on an income protection arrangement for employees covered by the Operational Enterprise Agreement,” they said.

“FRV considers it is imperative that agreement be reached as soon as possible, to provide operational staff with certainty about their future income protection.

“It is important to FRV that operational employees have ongoing income protection coverage whilst FRV and the UFU are engaged in consulting and implementing an agreed income protection arrangement. FRV is treating this issue as a priority of the highest order.”