Key crossbencher pulls support for trade union law-breaker bill

The Morrison government’s new bid to make it easier to disqualify law-breaking union officials has hit a Senate hurdle.

Senator Tim Storer in Canberra.

The Morrison government’s new bid to make it easier to disqualify law-breaking union officials has hit a Senate hurdle after crossbencher Tim Storer signalled he would oppose the proposals.

With Labor and the Greens ­opposed to the Ensuring Integrity Bill, the Coalition needs the support of eight of 10 Senate crossbenchers to get the laws passed.

But with the government due to begin debate on the bill in the Senate today, Senator Storer said yesterday he was “not inclined to support the ensuring integrity legislation at this stage”.

The South Australian independent said the bill sought to adapt the Corporations Act to align penalties against union officials with those for company directors, as well as to introduce new measures in relation to union mergers.

“Leaving aside the question of whether there is equivalence between companies and unions, whether like is being compared with like, the legislation goes far beyond the penalties and provisions of the Corporations Act,’’ Senator Storer said.

He said the bill sought to introduce a public interest test in relation to union mergers which does not apply to corporate mergers. “The bill also applies harsher penalties to unions than apply to disqualified company directors and is more expansive,’’ he said.

Senator Storer said companies were supposed to act in the interests of their shareholders while unions were voluntary associations established to act in the interests of their members.

“I am interested to note the ­admissions to the banking royal commission by a number of financial institutions that they repeatedly breached the law on thousands of occasions, costing ordinary people millions of dollars and personal hardship,’’ he said.

“Just one example that springs to mind: compare the fact that APRA failed to prosecute Colonial First State for 15,000 acknowledged breaches of the law, contrasting with the rigour with which some unions and union officials have been pursued.”

Jobs and Industrial Relations Minister Kelly O’Dwyer hit back at the criticism, insisting the government would continue to progress the bill. In apparent reference to Senator Storer’s comments, Ms O’Dwyer said it was “unfortunate, though perhaps not surprising, that some continue to misrepresent provisions of the bill”.

Unions are urging the Senate crossbench to vote down the “dangerous” bill, which lowers the threshold for courts to deregister a union and permits courts to disqualify union officials if they commit two civil law breaches.