Right-wing unions fight over Kristina Keneally’s future

Labor senator Kristina Keneally’s political future has sparked a brawl within the NSW Right faction.

Labor senator Kristina Keneally. Picture: Kym Smith

Labor senator Kristina Keneally’s political future has sparked a brawl within the NSW Right faction, with its most powerful ­unions divided over whether she should be handed a winnable spot on the Senate ticket or forced to contest a lower-house seat.

The Australian can reveal the Health Services Union is backing Senator Keneally to take the top spot for the party on the NSW Senate ticket at the next election.

The HSU position is at odds with the state’s biggest right-wing union — the Shop, Distributive and Allied Employees Association — which is digging in ­behind conservative incumbent Deborah O’Neill.

The SDA is claiming it is entitled to the spot and will not roll over to make way for the Senate deputy leader.

With the second spot on the Senate ticket designated to the Left ­faction, the loser in the battle ­between Senator Keneally and Senator O’Neill could be forced to run third on the ticket — a position Labor has not picked up since 2007.

Figures aligned to the “Shoppies” union believe it has done more than its fair share of ­compromising in the interests of party unity, including when SDA-aligned senator Don Farrell agreed to stand aside from the contest for Senate deputy leader after the 2019 election.

Anthony Albanese wanted a woman to hold the leadership role and Senator Keneally was elected unopposed.

One senior union figure said it would be “fair to say” most right-wing unions in the state would back the wishes of the SDA.

“The SDA typically underplay their hand because they have a few people they make sure are looked after,” a source said.

However, a senior figure in the Transport Workers Union said the key group was lining up ­behind Senator Keneally.

Other key right-wing unions in the state include the Australian Workers Union, the United Services Union and the Electrical Trades Union.

Labor senator Deborah O'Neill. Picture: Gary Ramage

Senior Labor sources suspect the NSW Right might try to talk Senator Keneally into running for a winnable Liberal-held lower house seat — Reid or Banks. Labor had hoped to win both last year but failed to pick up either. The MPs proposing the Banks or Reid option believe Labor will perform better in NSW under Mr Albanese’s leadership, and a high-profile candidate could help the team pick up seats.

A Labor Left MP said there was “no way” Mr Albanese would ­support Senator Keneally shifting to the lower house unless it was a safe Labor seat.

Chris Hayes, who holds the western Sydney seat of Fowler and is the brother of HSU NSW secretary Gerard Hayes, said he had not decided if he would stand at the next election.

Mr Hayes, whose seat is held with a margin of more than 17 per cent, said Senator Keneally should remain in parliament in a leadership position.

“I would like to see them both in parliament,” Mr Hayes said.

Several senior Labor figures said Senator O’Neill had agreed to run for her former NSW central coast seat of Robertson after a single term in the Senate when she replaced Bob Carr in 2013.

Sources backing Senator O’Neill deny there was any agreement. The ticket order will be signed off by the state’s powerful administrative committee between now and the next election. Its next meeting is on October 9.

Senator Keneally and Senator O’Neill declined to comment.

While most within Labor ­believe Senator O’Neill has the institutional support to win the No 1 position, Senator Keneally is in the federal leadership group and has the support of Mr Albanese. The Opposition Leader could request an intervention from the party’s national executive if the NSW faction and union bosses put Senator Keneally’s position in parliament at risk.

Mr Albanese has a casting vote on the executive, which has 10 members aligned to the Left and 10 aligned to the Right.

However, sources say the ­Opposition Leader, while canvassing support to become Labor leader last year, promised never to use his casting vote to settle factional disputes.