Government to reintroduce bills to curb union power as prime minister responds to scathing royal commission into trade union corruption report

This article is more than 4 years old

This article is more than 4 years old

The prime minister has vowed to curb the influence of trade unions by introducing two previously rejected bills, paving the way for the government to call a double dissolution election.

The hits, the misses, and the zealous overreach of the trade union royal commission | Paul Karp Read more

Malcolm Turnbull responded to a report by the royal commission on trade union corruption by promising to introduce the bills that have already been blocked by the Senate at least once in the last few months.

“We are willing to fight an election on this,” Turnbull told reporters on Wednesday. “If we cannot get the passage of this legislation through the Senate, then in one form or another it will be a major issue at the next election.”

The government will reintroduce legislation that sets up a construction industry watchdog, called the Australian Building and Construction Commission (ABCC). The ABCC bill was rejected due to a tied vote in the Senate in August.

The second bill – to set up an oversight body for registered organisations that would bring union officials’ responsibilities in line with those of company directors – has been rejected three times, most recently in August.

Constitutionally, the prime minister may vacate both houses of parliament for a double dissolution election if they are deadlocked over legislation. If the Senate rejects a piece of legislation for the second time after a period of three months has passed since it was originally rejected, then the prime minister can call on the governor general to dissolve both houses of parliament.

The employment minister, Michaelia Cash, has vowed to toughen up the registered organisations bill, despite the fact the Senate blocked passage of the existing, weaker bill.

Cash said some senators were apprehensive about passing bills relating to the influence of trade unions before the final report of the royal commission was issued.

“The crossbenchers who had not in the first instance supported the legislation, had indicated that they were awaiting this final report,” Cash said. “They now have the opportunity to review that report and I’ve always indicated I would then seek to sit down with them and discuss those two pieces of legislation.”

The ABCC legislation will be reintroduced the first sitting week of 2016 and Cash wants it passed through both houses by March.

“It the Senate is serious about addressing these vital issues, the Senate will pass these bills as soon as possible,” she said.

Final trade union royal commission report condemns 'louts, thugs, bullies, thieves' Read more

The royal commission report made 79 recommendations around the governance of trade unions, including the establishment of a national regulator to stamp out corruption in the labour movement.

The new body would be given the same powers as the Australian Securities and Investment Commission (Asic) to examine unions’ books.

Labor has promised to look at the recommendations, but thinks the creation of a regulator is unnecessary.

“For a government that likes to talk about cutting red tape, here it is again wanting to establish another bureaucracy,” the shadow employment minister, Brendan O’Connor, said. “We would say to the government rather than establishing a standalone commission, why not have Asic [take on the responsibility]?”

A total of 93 people have been referred as a result of the inquiry: 48 for criminal charges and 45 for civil charges.

Despite strong comments from some in the Coalition during the 21-month long inquiry, it failed to claim many high-profile scalps.

It cleared former prime minister Julia Gillard and current opposition leader Bill Shorten of wrongdoing, citing no evidence that either had broken the law.

Brandis says Coalition was right to pursue Gillard but Abbott stays silent Read more

The former employment minister, Eric Abetz, insisted the inquiry has left Shorten’s career “in tatters”.

“My message [to Shorten] is: raise the white flag, accept the recommendations and support the government once and for all weeding out corruption in the trade union movement,” Abetz said.

Former union leaders Kathy Jackson and Cesar Melhem were both referred for possible prosecution, though question marks had been raised about both officials before the commission even began.



Melhem labelled the royal commission “the Liberal party kangaroo court”, and vowed to fight to clear his name.

“They are happy to basically destroy people’s names and reputations and families,” he told reporters on Wednesday. “I welcome any investigation by a proper authority and I will fully cooperate in this process.”

Commissioner Dyson Heydon claimed that union corruption was “widespread” and “deep-seated”.



“It would be utterly naive to think that what has been uncovered is anything other than the small tip of an enormous iceberg. It is inherently very hard to identify most types of misconduct by union officials,” he said in the report.

“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.”

Turnbull said the report proved it “is not a case of a few rotten apples spoiling the whole barrel”.

The secretary of the Australian Council of Trade Unions, Dave Oliver, rejected that charge.

“We have 5,000 full-time officials and yet they’ve found a handful of matters to refer off for further prosecution,” Oliver told reporters on Wednesday. “It’s wrong to assert that there is a systemic problem right across the movement.”

Oliver pointed to the perceived bias of Heydon being billed to speak at Liberal party fundraiser as evidence the royal commission was a “political witch hunt”.

“Blind Freddie could see it was a witch hunt,” the national secretary of the Construction, Forestry, Mining and Energy Union, Dave Noonan, said.

He said Heydon had no credentials on assessing workplace safety.

“This bloke has never worked on a building site, wouldn’t know safety if he fell over it. The most serious risk he faces at work is a paper cut or indigestion after a big lunch, and I think it’s an absolute disgrace that he’s made recommendations designed to make safety in the construction industry worse,” Noonan said.

But the government backed the former high court judge, with attorney general George Brandis calling him “one of Australia’s most eminent jurists”.

“Dyson Heydon was the subject of disgraceful attempts to smear his personal and professional reputation during the course of this inquiry,” Brandis said.

Turnbull said the royal commissioner had been the subject of “unwarranted and baseless attacks”.