HWU chief loses battle to use union money to fund legal fight

Health Workers Union Victoria secretary Diana Asmar will not be able to use branch funds for legal fees to fight allegations she approved paying $2.7 million in members’ money to a printing service and got cash back.

The national office of the Health Services Union on Monday succeeded in requesting the Federal Court grant an injunction preventing the HWU from covering Asmar’s legal costs while she faces civil action from the Fair Work Commission.

Health Workers Union boss Diana Asmar.Credit: Justin McManus

HSU national secretary Lloyd Williams said the ruling was a significant victory.

“It ensures that hard-earned union dues cannot be misused to defend individuals facing serious allegations of misconduct. Our priority has always been, and remains, safeguarding our members’ resources and trust,” he said.

“Today’s court ruling vindicates our proactive approach in addressing these serious issues. It sends a clear message that the HSU will take concrete action to protect members’ interests and maintain the integrity of our union.”

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

She has been accused by the commission of allegedly stitching up a multimillion-dollar “ghost printing” arrangement, alongside her husband, David.

The investigation into the Asmars – revealed in The Age – alleges a printing business received $2.7 million in HWU member funds for 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.

On September 2, after the commission launched its civil proceedings, a meeting of the HWU’s branch committee of management agreed to pay Asmar’s legal fees for the case and those of other respondents working at the union.

But the national office intervened to demand they retract the motion and stand down Asmar while the case proceeded. It launched its own court action to put the Victorian branch into administration, arguing it was no longer functioning effectively.

As part of that process, the Federal Court on Monday agreed to an injunction preventing the arrangement to cover legal fees.

The Health Services Union is a large national union with multiple smaller branches representing different worker groups in Victoria, including the HWU.

Court documents seen by The Age show Asmar acceded to multiple undertakings to resolve concerns raised by the HSU, such as the provision of information and agreeing not to provide direction to union staff outside their responsibilities.

This left the legal-cost resolution as the only remaining sticking point, with Justice Craig Dowling granting an injunction to prevent them being paid.

In his decision, Dowling found there was a serious question to be tried that the HWU was unable to function effectively and that the resolution to cover Asmar’s legal costs had the potential for significant union money to be spent.

Dowling heard that there was a delay between the HWU being notified of the Fair Work Commission’s investigation, on April 8, and the appointment of auditors and measures to restrict the transfer of branch funds in September.

“I am satisfied that the delay in implementing financial measures imposing restrictions on the transfer and disbursement of branch funds contributes to a serious question that the branch has ceased to function effectively,” the court documents say.

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