Health Services Union launches legal action to place Victorian Workers Union into administration

The powerful union will launch legal action to place its embattled Victorian branch into administration, arguing it is no longer able to function effectively.

Health Workers Union Secretary Diana Asmar at the union rally over 100 job losses at Barwon Health's in-house laundry. Picture: Peter Ristevski

Australia’s powerful health services union will launch legal action to place its embattled Victorian branch into administration.

Victoria’s Health Workers Union is set to be dragged into the federal court after its national counterpart found it was “no longer … able to function effectively”.

The bold move comes after the Fair Work Commission launched proceedings against boss Diana Asmar and six other individuals from the Victorian branch last month.

Health Workers Union boss Diana Asmar is refusing to resign.

And as Victoria Police actively investigate Ms Asmar over allegations of financial impropriety.

The Victorian union boss, who is under pressure to resign as secretary, is alleged to have approved more than $2.7 million in “ghost payments” to a printing business and falsely claiming more than $120,000 in reimbursement.

In a statement on Monday, the Health Services Union said their National Executive had unanimously resolved to apply to the federal court to place the Victorian union into administration.

The HSU said Ms Asmar had repeatedly refused to heed calls for her to stand down from Victorian branch positions, despite being stood aside from all national positions.

HSU National Secretary Lloyd Williams said launching legal action was a “serious” but necessary step. “There are extremely serious allegations that have been made against the HWU Branch that necessitate action to ensure Branch funds are protected and the Branch returns to functioning effectively for the benefit of its members,” he said.

“Applying to place a branch of our Union into administration is a serious step but one we take very consciously and deliberately.”

He said the union should be focused on expanding reproductive leave and fighting for better wages and conditions.

“It is crucial to emphasize that the allegations are isolated to the Victoria Health Workers Union branch and that the broader union’s work to tackle this challenge has been explicitly recognised by the Fair Work Commission,” he said.

The Union is preparing to file the application tomorrow.

Ms Asmar was contacted for comment.