Unions royal commission: final report delivered

The royal commission has uncovered many examples of union misconduct, Malcolm Turnbull says.

Kathy Jackson has been referred to prosecutors. Picture: Four Corners.

The trade union royal commission has uncovered many examples of misconduct in the union movement, Prime Minister Malcolm Turnbull says.

“If the lessons of this report are learned, the trade union movement will emerge much stronger,” he told reporters in Sydney.

“It is a real watershed moment.

“For the labour movement, for its leaders, for Mr Shorten,” he said.

“They can take this opportunity to support these recommendations and undertake real and lasting reform of the trade union movement,” Mr Turnbull said.

“This is a real test for Mr Shorten, Ms Plibersek and all the leaders of the union movement.” The prime minister said he was confident the union movement would emerge stronger if it supported the 79 recommendations made in the report - which detailed a long list of union officials who may have committed crimes including blackmail, bribes and threats of violence.

The federal government is now working to introduce stronger and more effective legislation for the lack of accountability and transparency in the union movement, Employment Minister Michaelia Cash said.

Legislation for the re-establishment of the Australian Building and Construction Commission and a new Registered Organisations bill will be introduced into parliament early next year, she said. “We will not stand by and allow this scandalous behaviour to continue,” Ms Cash said during a joint press conference with the prime minister.

“This government will take firm and swift action.”

Report slams ‘louts, thugs, bullies’

Trade union Royal Commissioner Dyson Heydon has laid bare a roll-call of “louts, thugs, bullies, thieves, perjurers, those who threaten violence, errant fiduciaries and organisers of boycotts” in his findings on the two-year inquiry into union corruption.

In the scathing final report, which details examples of “widespread” and “deep-seated” misconduct within the Construction, Forestry, Mining and Energy Union, the Australian Workers Union, the Transport Workers Union, the Health Services Union and the National Union of Workers, Mr Heydon called for an all-powerful “regulator” with the power to shut down unions and employer groups.

He refers former trade union boss turned Victorian MP Cesar Melhem to Victorian prosecutors for consideration of possible corruption and false accounting charges.

Former Health Services Union secretary Kathy Jackson is also referred to prosecutors to consider whether she should be charged for obtaining property and financial advantage by deception.

Mr Heydon has also asked the Victorian Commissioner of Police to investigate whether Ms Jackson may have given false or misleading evidence.

Kathy Jackson has been referred to prosecutors. Picture: Four Corners.

“The case studies examined have revealed widespread misconduct that has taken place in every polity in Australia except for the Northern Territory,” Mr Heydon’s report said.

“These aberrations cannot be regarded as isolated.

“They are not the work of a few rogue unions, or a few rogue officials.

“The misconduct exhibits great variety. It is widespread. It is deep-seated”.

Mr Heydon also took a swipe at the ACTU, which he said “refused to engage in a constructive way with any debate” on law reform, as he referred 37 people for investigation by criminal or civil authorities.

He made 79 recommendations striking at sources of funding and power within unions, including directing employees into industry superannuation be banned from enterprise agreements.

Cesar Melhem has also had charges recommended against him. Picture: Valeriu Campan

Mr Heydon stressed that it was not “only union officials who have been involved…adverse recommendations have been made about numerous executives from large commercial organisations” as he referred executives from Mirvac, the Thiess John Holland construction joint venture for possible civil and criminal charges.

David Atkin, chief executive of the Cbus construction industry super fund presumably broke company laws for his involvement in leaking private details of members to the CFMEU, Mr Heydon said.

The report recommends governments consider “adopting a national approach to the registration, deregistration and regulation of employee and employer organisations, with a single regulator overseeing all such organisations throughout Australia”.

ATTACHMENT: The TURC report in full

ATTACHMENT: Introduction to TURC report

ATTACHMENT: Law reform recommendations

ATTACHMENT: TURC referrals

In his preamble to the report, Mr Heydon said: “It is clear that in many parts of the world constituted by Australian trade union officials, there is room for louts, thugs, bullies, thieves, perjurers, those who threaten violence, errant fiduciaries and organisers of boycotts,”

Past and present officials from the union movements’ senior ranks face allegations of wrongdoing.

Mr Melhem was referred to the Victorian Commissioner of Police and DPP over nine possible criminal charges as well as presumed offences under the Fair Work Act. Former HSU leaders Katherine Jackson, Michael Williamson and Craig Thomson were also referred to police and the DPP and the Fair Work Commission.

The big names of TURC

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Mr Heydon added: “the National Secretary of the AWU, Tony Sheldon, may have lied to the Australian Labor Party about the number of financial members that union has”, also noting allegations against HSU State Secretary, Diana Asmar and ACT CFMEU secretary, Dean Hall.

“Nor can the list be regarded as complete,” Mr Heydon said.

“It would be utterly naïve to think that what has been uncovered is anything other than the small tip of an enormous iceberg.”

ACTU secretary Dave Oliver will give a press conference today responding to the report.

The commission has run for 21 months, hearing from 505 witnesses over 155 days of public hearings.

Mr Heydon said one volume of the six-part report will remain secret.