Health Workers Union finances being investigated by Fair Work

The union at the centre of last week’s damning IBAC investigation is also being probed over its financial management.

Victorian Premier Daniel Andrews. Picture: NCA NewsWire / David Crosling

The union at the centre of IBAC’s Operation Daintree investi­gation into a contract awarded by the Victorian government is also the subject of an ongoing Fair Work Commission probe into its finances.

The Victorian corruption watchdog found senior government advisers and public servants were acting in the “perceived interests” of ministers and Premier Daniel Andrews in handing a $1.2m contract to the Health Workers Union on the eve of the 2018 state election, without a competitive tender process.

The HWU is also known as the Victoria No 1 Branch of the Health Services Union, having been renamed in the aftermath of the HSU’s corruption scandal.

The Australian has confirmed the HWU is the subject of a Fair Work investigation – transferred from the previous Registered Organisations Commission – that the FWC says “arose from a range of sources, including protected disclosures alleging misconduct concerning the financial affairs of the branch”.

“The investigation concerns the branch’s records and accounts and whether the branch or any persons subject to the Fair Work (Registered Organisations) Act 2009 may have contravened a provision relating to the branch’s accounts and audits, or a civil penalty provision of the act,” the FWC said in a statement.

“The focus of the commission’s investigations are on matters related to financial manage­ment of the branch. The findings made by the Victorian Independent Broad-based Anti-corruption Commission in its Operation Daintree will be considered by the commission and may inform its investigations.

“Although it is not possible to provide timing estimates, the investigation is continuing and the general manager of the commission, Murray Furlong, said ‘This investigation is progressing and I am committed to allocating the resources required to ensure it is completed with rigour as soon as practicable’.”

News of the FWC investi­gation, particularly in light of the HSU’s history of corruption, prompts renewed questions over why the government offer it the contract.

Operation Daintree noted evidence from Jenny Mikakos in which the former health minister alluded to the findings of the Royal Commission into Trade Union Governance and Corruption on unions’ use of training funds, saying it “should have been a further ‘red flag’ about entering into a non-competitive procurement for the development and delivery of a training program by an organisation associated with and effectively administered by a union”.

A government spokeswoman said the issue was “a matter for the commission”.

HWU secretary Diana Asmar said IBAC’s investigation had “focused on the procurement processes of a government department and the conduct of politicians and their staff.”

“Those matters do not concern the Fair Work Commission, nor do they concern HWU who acted in good faith in all negotiations,” Ms Asmar said.

“Despite multiple invitations, the Fair Work Commission has refused to confirm with the HWU precise details of what it is investigating.

“The Commission has not formally met with the HWU to discuss any concerns it has. The HWU continues to co-operate with the Commission in relation its enquiries and remains committed to its members and their safety.

“Additionally, the HWU continues to adopt appropriate financial governance procedures across the organisation.”

The contract at the centre of Operation Daintree was awarded to enable the HWU’s newly established Health Education Federation to deliver occupational violence and aggression training to health workers.

IBAC found HEF had failed to deliver satisfactory course materials and had trained only 83 of a planned 575 health workers, having received $335,000 in contractual payments, when the scheme was suspended in March 2020 from the Covid pandemic.