‘We’re broke’: embattled union pays Labor $20,000

Tensions have erupted in the Health Workers Union, after it paid more than $20,000 in fees to the Victorian ALP despite being placed in administration and facing a financial crisis.

Prime Minister Anthony Albanese addresses the Victorian Labor Party conference at Moonee Valley Racecourse. Picture: David Crosling

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Tensions have erupted in an embattled union that has paid more than $20,000 in affiliation fees to the Victorian ALP despite being placed in administration and facing a financial crisis.

The Australian has confirmed the Health Workers Union’s Victorian branch paid the quarterly fee late last month in the midst of rising internal calls for the five-figure fees to cease while the union deals with its financial challenges which have left the branch “broke and nearly insolvent”.

Veteran HWU industrial organiser Ray Collins sent a lengthy email to members of the union’s national executive demanding the branch disaffiliate from the Victorian ALP which costs the cash-strapped union up to $100,000 a year in fees.

“I am writing to you requesting and imploring you to exercise whatever powers you have within the rules, to immediately disaffiliate from the Victorian branch of the Australian Labor Party,” the experienced unionist wrote.

“And not pay outstanding affiliation fees. The HWU are broke, nearly insolvent.”

The HSU’s Victorian branch was placed in administration late last year amid allegation of financial irregularities against state secretary Diana Asmar. Former National Union of
Workers national secretary, Charlie Donnelly, was appointed as the interim administrator.

Mr Donnelly declined to comment on Thursday when asked about the $20,000 ALP fee. “I can’t talk to you about these matters,” he told The Australian, before the phone call ended abruptly. Victorian ALP state secretary Steve Staikos declined to comment.

Union affiliation fees are typically paid quarterly and the money pays for the administration and operation of the party’s state branch which will be managing the forthcoming federal election campaign for Prime Minister Anthony Albanese.

The HWU’s Victorian branch, which has about 16,000 members and represents low-paid health industry workers, was placed in interim administration by the union’s national executive.

Concern within the union about the $20,000 fee paid to the ALP has been building in the HWU state branch with opponents believing the union cannot afford the expense and gets little value in return.

In his eight-page letter to the union’s national executive, Mr Collins warns that the union was often the victim of “factional alignments” playing out in Labor.

“I strongly urge the executive to do whatever … to ensure that reaffiliation cannot be completed before July 1, 2030,” he wrote.

“HSU … has a long history of being a target for factional alignments and numbers. It would be fair to say when the branch was placed in administration in the past, part of the root cause is outside influences.”

Mr Collins warned the union’s national executive that Labor activists were still trying to influence the union while it was in administration.

“To be perfectly honest, it may be too late,” he wrote.

“They (the ALP factional activists) are already circling; discussions and plans are occurring.

“It has commenced, and I have made it clear I will have no part of it.”

Mr Collins said while he agreed the union “needs to change to become more functional, the current direction is ill-considered, and I question where this direction is coming from”.

“Perhaps it’s because I am just the old and experienced guy, they expect the old grumpy guy who fixes everything ‘the Ray way’.

“Well, no more, morale is just terrible, disbelief, expected some consternation naturally given the massive leadership change … I clearly understand and agree that we need to grow and grow quickly but I seriously question what is happening.”