Parliament passes union rort laws

The federal government’s plan to force trade unions to become more accountable and transparent is one step closer after legislation passed the lower house.

Workplace Relations Minister Bill Shorten said the measures would enhance Fair Work Australia’s (FWA) ability to investigate claims of rorting within unions.

Under the new laws, the five highest paid officials of each union organisation, plus the two highest paid in each branch, must disclose their pay, including extra pay for board membership and substantial non-cash benefits like a car.

Penalties for breaches will be tripled, with the maximum to be $33,000 for an organisation and $6600 for an individual.

“The bill will improve financial transparency and disclosure by officials of registered organisations,” Mr Shorten told parliament on Monday.

The federal government measures were crafted in response to the recent Health Services Union (HSU) scandal.

Former Labor MP Craig Thomson was accused of misusing the HSU’s funds when he was the union’s national secretary.

Mr Shorten announced the government would tighten laws to bring greater accountability to trade unions shortly after FWA in May tabled a 1100-report in parliament on its investigation of the HSU scandal.

Earlier on Monday, independent MP Bob Katter warned the government against overreacting to the HSU scandal in a way that could lead to “witch hunts”.

“When the old witch hunt occurs, watch out, because there’s no such thing as justice here,” he told parliament.

Coalition MPs opposed the bill, saying that the measures did not go far enough.

They’re calling for unions to be governed by the same rules as corporations and for heavier fines to be applied to misbehaving members.

Australian Greens MP Adam Bandt told the house he was concerned the government was rushing the laws through parliament.

He said he was worried that the government was creating an uneven playing field in making union officials disclose their earnings while company executives did not.

The Fair Work (Registered Organisations) Amendment Bill 2012 will now proceed to the Senate.

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