Documents show AWU kept Chiquita workers in the dark

The Australian Workers Union planned to keep members in the dark about its involvement in a deal that included culling 160 staff.

The Australian Workers Union planned to keep members in the dark about its involvement in a deal to restructure the workforce of Chiquita Mushrooms that included culling 160 permanent staff.

The decision to downplay the extent of the union’s role in brokering the deal with a union-friendly labour-hire company was made at a meeting in February 2003 to canvass a new enterprise bargaining agreement between the AWU and Chiquita.

The meeting was attended by AWU organiser Frank Leo, Chiquita’s general manager Stephen Little, human resources manager Joe Agostino and AWU delegates.

The minutes of the meeting, included in documents tendered to the trade union royal commission, conclude: “Certain things and ideas that the AWU might have are not necessarily accepted by our membership, so the company needs to lead the way and start that discussion rather than the AWU.”

It is understood the “things and ideas” relate to planned redundancies at the site.

The EBA — signed in 2004 under then Victorian state secretary Bill Shorten and Chiquita, then majority owned and now wholly owned by the Costa Group — named recruitment business Oneforce as the exclusive labour supplier for the business.

The deal was predicated on a plan to cull Chiquita’s workforce by 160 permanent employees. It required a further 200 independent contractors, working as mushroom pickers, to move to Oneforce or face dismissal. In turn, Chiquita and the AWU agreed to install more than 300 Oneforce workers at Chiquita in an arrangement that drove hundreds of members and at least $150,000 in union dues to the AWU.

Mr Leo recommended Oneforce to Chiquita on the basis it was “union-friendly”, he told the trade union royal commission last year.

Yesterday Joseph Clark McCullough, who set up Oneforce in 2002, told The Australian he had known Mr Leo since the “late 1990s”.

He said although AWU membership was not compulsory for Oneforce workers, it was “part of our induction process”. “When they (prospective employees) came in for an initial interview we told them all about the good the unions have done,” he said.

Mr McCullough could not explain a further $150,000 in union dues collected by Oneforce between 2003 and 2009.

Oneforce collapsed in 2013, leaving debts of more than $2 million, including $560,000 in unpaid superannuation for its casual workers, and Mr McCollough and his fellow directors bankrupt.

Most of Chiquita’s permanent employees were offered voluntary redundancy and a job with Oneforce. However, a small number were sacked, giving rise to unfair dismissal claims.

The AWU declined to comment yesterday.

Mr Shortern’s office has declined to answer questions from The Australian.

Mr Shorten is scheduled to appear before the royal commission on July 8.