Judge’s HSU powers questioned

The Federal Court does not have the power to make an order vacating all the Health Services Union’s (HSU) official positions, national secretary Kathy Jackson’s lawyer says.

Brett Shields also said the court lacked the power to approve an administration scheme, which included vacating those offices.

He was making submissions in the Federal Court on Thursday, at the hearing of applications to place the state union, HSUeast, and the HSU East branch of the federal union into administration.

Except for Ms Jackson, all the parties – including HSU acting national president Chris Brown and federal Workplace Relations Minister Bill Shorten – have submitted that all the offices should be vacated.

Mr Shields compared the situation to administrators being appointed under the Corporations Act where powers were suspended but the official positions were not lost.

As well as the issue of vacating offices, Justice Geoffrey Flick has also heard submissions on whether there should be a demerger and who should be appointed as administrator.

Steven Crawshaw SC, for the HSU East Branch, said the body should be demerged immediately under the scheme to appoint an administrator.

But Justice Flick said while he had the power to order a demerger, he was hesitant to do so without knowing what the overwhelming majority of members wanted.

He added he thought the merger that led to the formation of the HSU East Branch was a “silly idea” in the first place.

The HSU East Branch was formed in 2010 from the NSW branch, HSU Victoria No.1 Branch and HSU Victoria No.3 Branch.

Mr Crawshaw acknowledged that the merger had been a silly idea in the first place, noting the judge had no submissions before him which suggested anything different.

He told the judge that at the annual convention last November the rank and file members expressed their wish for the demerger.

The hearing is continuing.

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