Closures and membership woes hit AWU coffers

Closures of aluminium and steel works and a ‘purge’ of so-called members have hit Australian Workers Union finances.

AWU national secretary Scott McDine. ‘Did you really think we were going to grow under those conditions?’ Picture: Adam Head

Closures of aluminium and steel works and a “purge” of so-called members have hit Australian Workers Union finances amid reports that the purchase of two training colleges has drained the Queensland branch’s cash flow.

AWU Queensland, down 23 per cent in members, suffered a $1.4 million loss in the year to June, with liabilities outstripping assets by $9.5m, according to an independent audit report by Hanrick Curren.

Accounts reveal a $1.55m debt that two training colleges — 100% Training Pty Ltd and its parent, Tree of Knowledge network — owe to members. “It is uncertain whe­ther and to what extent these debts will be repaid,” the ­report says.

There was a “material uncertainty that may cast significant doubt about the union’s ability to continue as a going concern”.

The Queensland branch executive reported it had secured $8.8m in financing after June, and was “confident” the training funds would repay debts to the union in three to five years. It has disclosed property holdings valued­ at more than $11m.

National secretary Scott McDine confirmed the AWU’s national office had also suffered a hit to finances and membership. “We’ve had aluminium smelters close, and redundancies among the steelworkers, and we’ve had the purge since the (trade union) royal commission: did you really think we were going to grow under those conditions?” he said. The union has spent more than $800,000 fighting royal commission subpoenas.

Victorian secretary Ben Davis said he had shed members after revelations that many had been signed up without their knowledge or were paying “service fees” rather than genuine dues.

The ban on payroll deductions by Queensland’s Newman government also hurt unions.