CFMEU raised thousands through ‘hidden’ clauses

The construction union raised ‘hundreds of thousands’ through clauses in enterprise agreements, the commission hears.

The construction union raised “hundreds of thousands of dollars” over two years through “hidden” clauses in enterprise bargaining agreements, the royal commission into trade union corruption has heard today.

Dean Hall, head of the ACT branch of the construction, forestry, mining and energy union, has been asked this morning about agreements which mandate payments for contributions to charity, training and income protection, counsel’s opening submission to the Commission states.

The EBAs, struck with firms in the ACT and NSW, suggest the money paid by employers will flow to separate entities. However, the payment “facilitates financial benefits for the union itself,” the Commission heard.

“That the CFMEU was expected to benefit financially to this large extent was not apparent from the terms of the EBA.”

“Indeed, the question arises as to whether the setting up of complex structures in relation to these three areas — training, contribution to a charity and income protection — was done deliberately to hide the CFMEU’s involvement in and or connection with the entities or structures set up to provide these services.”

Hearings in Canberra last month alleged the CFMEU “applied coercive pressure” to employers to sign union EBAs.

Today, counsel hypothesised that “significant commercial benefits flow to the CFMEU under the terms of each EBA”.

“Ultimately it would appear that the CFMEU ACT branch benefited financially from the entry into the EBA containing these clauses to the extent of hundreds of thousands of dollars in the 2013 and 2014 calendar years.”

Under the deals, payments for training are made to Construction Employment Training Welfare Ltd, as trustee for Creative Safety Initiatives ‘CSI’ Trust.

Mr Hall is one of three directors of the organisation, which offers courses in occupational health and safety, Drug and Alcohol Awareness, asbestos training and many others.

It is one of several organisations that “employers are bound to use, for a fee, for their training needs under the training clause in the EBA,” counsel assisting the Commission states.

“The Commission will be enquiring into questions involving conflicts of interest, lack of transparency and possible third line forcing.”