Time’s up for Health Workers Union leaders as court action looms

The embattled Victorian Health Workers Union faces a court fight to avoid entering administration after its national leadership lost patience with the state branch’s refusal to stand down controversial secretary Diana Asmar.

The union’s national executive voted unanimously on Monday to begin Federal Court action that would put the HWU, which represents about 16,000 mostly low-paid health sector workers, into administration. The national executive argues the HWU no longer functions effectively.

Health Workers Union boss Diana Asmar has privately denied allegations against her.Credit: Justin McManus

The decision was made after the Fair Work Commission launched civil proceedings last month against Asmar, her husband David and five other officials over allegations they ran a multimillion-dollar ghost-printing scheme and made irregular expense claims.

The commission alleges Asmar approved $2.7 million in payments to a print business that performed no service, with the money instead going into private accounts, and that more than $120,000 in reimbursements were claimed without evidence of relevant business expenses.

The case deepens recent turmoil in the union movement, which is reeling after most of the CFMEU was placed in the hands of an administrator over claims of corruption, intimidation and criminal infiltration. That move by the Albanese government, and endorsed by peak body the Australian Council of Trade Unions, has sparked a bitter split between several large unions.

The HWU is one Victorian branch within the national Health Services Union, which is not subject to allegations.

Asmar was stood down from her national positions, but has resisted calls to step aside from her role as the branch’s state secretary.

“Applying to place a branch of our union into administration is a serious step but one we take very consciously and deliberately,” Health Services Union national secretary Lloyd Williams said.

“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.

“It is crucial to emphasise 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.”

Senior HWU officials have also called for Asmar to stand down, but the union’s branch committee of management hasn’t passed a motion requiring her to do so.

The national executive gave the HWU leadership a September 3 deadline to respond to its demands: that senior officials accused by the commission be stood down, administrators be appointed and that the branch rescind a motion that permitted union funds to be used for Asmar’s legal fees.

Court documents obtained by this masthead show Fair Work Commission investigators traced 170 transactions between 2016 and 2021, in which $2.7 million in HWU funds were paid to a printing company named Southern Publishing.

After the transactions were made, the documents allege, bank records showed money would be withdrawn from the company’s account. Later, “unexplained” deposits worth thousands of dollars were allegedly made into joint or individual Asmar accounts.

The Asmars are accused of ultimately receiving more than $1.2 million cash back from the business “in circumstances where she [Diana Asmar] knew that the money had been paid to Southern Publishing from the HSU as fees for no service”, the documents say.

Police are also investigating. No charges have been laid.

Asmar has been contacted for comment. She has privately denied the claims.

Monday’s development comes amid a turbulent period for the union movement in Victoria and nationally, with the Communications, Electrical and Plumbing Union last week voting to split from the ACTU to protest against the peak body not supporting the embattled CFMEU. The construction union has been suspended from Australia’s peak union body.

ACTU secretary Sally McManus on Monday returned fire at critics over her handling of CFMEU misconduct allegations, saying those who bear responsibility “now want to blame everyone else”.

The Fair Work Commission alleges Diana Asmar and others ran a multimillion-dollar ghost printing scheme.Credit: Luis Enrique Asqui

The CFMEU’s ouster was prompted by a joint investigation by The Age, The Australian Financial Review and 60 Minutes. The Building Bad series detailed allegations of corruption, intimidation and criminal infiltration involving the construction union and building sites across the country.

“I want to make this really clear: none of this is union business,” McManus said in a social media post detailing allegations against CFMEU leaders without naming them.

“None of this is about being a militant or a strong union. It is not unionism. There is no place in our movement for crooks or violence – no place. These behaviours threaten our movement and the good work unions do.

“Unfortunately, some of the individuals who do bear responsibility, and could have, at many points, acted to avoid what has occurred, now want to blame everyone else.”

McManus said the ACTU had asked the CFMEU to act, but the union refused to voluntarily enter administration, as other unions had in the past, to rid itself of corruption, so the government had to act.

“The period of administration is about one thing: ridding the union of criminal elements, intimidation and violence, so it can return to a democratic control as soon as possible as a strong union,” McManus said.

“Union democracy is paramount. But there can be no democracy where people are afraid to speak up because of violence and intimidation.”

She said administrators of the CFMEU would still represent members strongly. The rank and file were not to blame, she said, and deserved a “strong, clean union”.

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