Interim administrator appointed to HSU

The troubled Health Services Union (HSU) has been placed into administration and its officers have been suspended by a Federal Court judge.

Justice Geoffrey Flick on Friday appointed former Federal Court judge Michael Moore as interim administrator of the state union, HSUeast, and the East branch of the federal HSU, despite heated opposition from national secretary Kathy Jackson.

Justice Flick ordered the suspension of union officers at HSUeast and ordered that officers of the HSU East Branch be prevented from exercising any powers.

He gave officers of both organisations seven days to return all property to the interim administrator, including credit cards.

The judge had been hearing applications since Tuesday on putting HSUeast and the HSU East branch of the federal union into administration.

On April 30, a report commissioned by the HSU, conducted by Ian Temby QC, found the HSU East branch awarded $17 million of dodgy tenders and had no credit card policies.

On May 3, a lawyer for acting HSU national president Chris Brown, who was one of several parties seeking the appointment of an administrator, listed mass resignations, harassment and intimidation of members and disruption of meetings as grounds for believing the East branch had ceased to function effectively.

As interim administrator, Mr Moore will co-operate with the investigation by Mr Temby and any other investigations into the conduct of HSU officers.

Most of the parties involved in the case, Mr Brown, federal Workplace Relations Minister Bill Shorten, NSW Finance Minister Greg Pearce and HSUeast supported the appointment of Mr Moore.

But Ms Jackson, who parted ways with her legal representatives on Friday morning, vigorously opposed the appointment, describing Mr Moore as “the darling of NSW officials”.

Mr Moore was one of three people appointed by Workplace Minister Bill Shorten to review the Fair Work Act in December last year.

Work Place Review editor and barrister, Jeffrey Phillips, was also put forward as a candidate for interim administrator, but the court heard he had written an article describing Ms Jackson as an “innocent whistleblower”.

Ms Jackson submitted the Bar Association should appoint an administrator, “not someone the ALP has hand-picked”.

“Michael Moore is an employee of the federal government,” Ms Jackson said. “This government is an ALP (Australian Labor Party) government. In my submission, it could be perceived as controversial.”

She added it would be “manifestly unjust” to make a contentious appointment on that interim role when she had not been given the opportunity to make submissions.

Ms Jackson accused the judge of “lapping up” the advice of other lawyers, something Justice Flick said he found “offensive”.

The judge interrupted Ms Jackson several times, telling her “you are reading a press release”.

“You’re not doing your case any good,” he said.

Justice Flick found that while he had not yet heard all of the evidence in the case, the appointment of an interim administrator was justified.

“I’ve reached a decision today in my own mind that whatever may ultimately happen, there is a sufficient basis at present to justify the making of that order on an interim basis,” he said.

He adjourned the matter until next Friday, June 15, and he invited Ms Jackson to make further submissions then, telling her, “I’m not that easily offended”.

Mr Moore will take up the position from midday on Tuesday.

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