Members’ funds used for $150,000 utes

Two ex-Transport Workers Union chiefs used members’ funds to buy luxury V8 utes, a royal commission has heard.

Two ex-Transport Workers Union chiefs abused powerful ­positions for financial gain when they used members’ funds to buy luxury V8 utes for personal use, breaking fair work laws and their own union’s rules, legal counsel assisting the royal commission into union corruption has alleged.

Former West Australian TWU branch secretary James McGiveron and his successor, Richard Burton, bought $150,000 Ford F350 utes with union funds in 2013. The vehicles, supposedly a “parting gift” for Mr McGiveron, came with a $477,294 termination payment also for Mr McGiveron from the union.

Submissions to the commission allege Mr McGiveron and Mr Burton breached their fiduciary duties by creating a conflict of interest when they used the funds to buy the utes. They have until Friday to respond. The commission will rule on their conduct by December 31.

Counsel also described it as “an extraordinary state of affairs” that the union branch committee of management “knew nothing” about the utes or the cash.

The TWU national office, after discovering the payments last year, alerted the Fair Work Commission, and asked former NSW judge Wayne Haylen QC to investigate. Following Justice Haylen’s report the TWU took the matter to the Federal Court.

The TWU said the submissions published yesterday trod over “old ground ... for political purposes”.

“Before the royal commission hearings, the TWU was already exploring every legal avenue available to recover funds that was spent inappropriately,’’ TWU ­national secretary Tony Sheldon said.

“As a result of these efforts, in excess of $175,000 has already been recovered.’’

Earlier yesterday, claims that the union engaged in anti-competitive conduct with transport and logistics company Toll Holdings were found to be baseless.

The Australian Consumer & Competition Commission said that the deal for the TWU to provide Toll Holdings with “training” and “auditing” worth $150,000 did not breach competition laws, despite concerns by industry groups that the union was being paid to spy on Toll’s competitors.

Ken Phillips, executive director of Independent Contractors of Australia, said: “We’re appalled. If what Toll Holdings paid the TWU to do is not illegal, than the law desperately needs to be changed. The unions’ business model ­involves rorting competition and apparently it’s all quite legal.”