Shorten tightens rein on unions

FAIR Work Australia will be given greater powers to investigate unions, under governance changes proposed by Bill Shorten.

FAIR Work Australia will be given greater powers to investigate unions, while union and employer officials will be forced to disclose company directorships and superannuation fund board fees, under governance changes proposed by Bill Shorten.

The changes, which yesterday won in-principle support from union and employer representatives, will also triple the fines -- to $3600 for individuals and $33,000 for organisations -- for unions and employer groups that break the law.

The proposals, devised by the Workplace Relations Minister in the wake of the Health Services Union scandal, will allow Fair Work Australia to appoint forensic accounting firms to help the tribunal investigate unions and employer organisations. Rules will also be altered to allow Fair Work Australia to give information to state and federal police.

Mr Shorten said the changes would require union officials and employer representatives to detail personal interests relevant to their roles.

Under the proposed legislation it would be an offence to hold a directorship in a company that did business with a union or employer body without declaring such an interest. Officials will have to disclose their salaries under the new rules, as well as any fees obtained from sitting on superannuation fund boards.

Union and employer officials will also have to undertake compulsory training in relation to their financial governance and accounting obligations.

While the civil fines have been tripled, the new rules do not set out explicit criminal penalties.

Mr Shorten said he was pleased that leading employer groups and the ACTU had agreed in principle to strengthen the regulations governing registered organisations.

He said he hoped to introduce a bill into parliament "very soon" after receiving further feedback from unions and employers on draft legislation.

ACTU secretary Dave Oliver said he supported union officials being required to disclose relevant pecuniary interests.

Different unions had different arrangements for payment of superannuation board fees.

"I don't think there should be one rule that applies to all but I certainly agree that there should be full disclosure in relation to those payments," he said.

He said the union movement would not tolerate the misappropriation of union money.

Additional reporting: Ben Packham