Issue 19085
, Friday 28 March 2014
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In this issue
[1]
Former NSW secretary of the Health Services Union
(HSU) Michael Williamson has been sentenced to at least five years jail for
defrauding the union of almost $1 million. In a sentencing hearing today
(March 28), the District Court described Williamson's action as
"brazen and arrogant". Responding to the sentence, HSU NSW
secretary Gerard Hayes told WFNSW
the NSW branch would continue to pursue the lost money, despite
Williamson's declaration of bankruptcy. A Federal Court action examining
Williamson family assets is expected to get underway in five weeks (WFNSW19055).
The hearing comes just days after former national secretary of the union
Craig Thomson was sentenced to three months jail for wrongly using a union
credit card including to pay for prostitutes. Thomson is appealing the
sentence.
[2]
The HSU NSW branch will open its books to members
under orders designed to address "invalidities and
irregularities" in the financial administration of the union during
the Williamson years (Williamson sentenced to 5 years jail, above). Approving the
branch's application for rectification orders, Industrial Relations
Commission President Justice Michael Walton said he was satisfied they
would "not do substantial injustice to HSU NSW, or to any member or
creditor of HSU NSW or to any person having dealings with HSU NSW".
The application said the irregularities occurred
between October 1, 2010 and September 20, 2011; and Oct
1, 2011 to Sept 30, 2012. The branch operated as HSU East during the
period, following a merger with Victorian branches. Justice Walton
ordered the union provide members with unaudited accounts and balance
sheets for the two periods; an unsigned audit report prepared by BDO
(NSW-Vic) Pty Ltd; a balance sheet and profit and loss statement from VJ
Ryan and Co Pty Ltd; and audited financial statements prepared by Nexia
Court and Co from July 1, 2012 to Sept 30, 2012. Justice
Walton said provision of the documents would satisfy reporting requirements
under s282 of the IR Act 1996. (Health Services Union NSW [2014],NSWIRComm10,
21/3/14)
[3]
A blow-by-blow description of the rise and fall of
the HSU East branch is provided in Justice Walton's orders (HSU NSW to
open its books, above).
Formed in July 2010 under a controversial restructure that saw
members of the HSU Victorian No1 and No 3 branches allowed to become
members of HSU NSW, HSU East replaced HSU NSW. Two years later the
"super branch" was in ruins.An internal inquiry by HSU East Union
Council under Ian Temby QC and Dennis Robertson identified major failings
in the governance and business practices of HSU East, highlighted by a lack
transparency and scrutiny of financial and business information and
policies and procedures for dealing with potential conflicts of interest
and use of credit cards. On June 21, 2012, the Federal Court
appointed an administrator to demerge the NSW union from the Vic branches.
[4]
The State Government's bid to overturn two NSW
Industrial Relations Commission decisions excluding super from the 2.5%
public service salary cap returns to the cmn next week, with two extra
appeal matters listed for hearing by a full bench. In a notice of motion
listed for April 2, the Govt will argue Justice Roger Boland
erred in relying on a Second Reading speech in parliament to support his
decision excluding super from the cap. The Govt will also argue the cmn
didn't treat the Treasury witness as an expert witness. The Court of
Appeal, meantime, is believed to be nearer a decision on a Govt application
claiming Justice Boland erred in finding the Govt has the capacity to
pay super on top of the cap, with sources saying a decision could come
late April or early May.
[5]
The Public Service Association (PSA) has accused
the NSW Government of a lack of transparency over its planned move of 3,000
public servant jobs to Sydney's west. Under changes the govt announced this
week, the Ambulance Service of NSW will be moved from Roselle to North
Parramatta, the Office of Environment and Heritage and the Office of State
Revenue to Parramatta, Sport and Recreation from Olympic Park to Penrith,
and the Community Relations Commission and divisions within the Department
of Family and Community Services from Sydney and Ashfield to Liverpool. The
Govt says the moves will ensure public servants are based in the
communities they serve. The PSA, meantime, has demanded the govt meet with
the union and staff to address concerns. Secretary Anne Gardiner told WFNSW the govt's
selection process and business case for the moves remained a mystery.
"Sport and Recreation from Olympic Park to Penrith – why?" she
said.
[6]
Green groups have backed an Upper House call for
the State Government to release all documents relating to proposed new
planning laws. Nature Conservation Council of NSW's Pepe Clark said the
papers would "shine a light" on alleged "undue
influence" of developers and the mining lobby on the Govt's draft
planning bill - and planning processes generally. The Govt has defended
changes under the Bill, including expanded appeal rights for developers, as
a "balanced" approach to planning in the state. The Bill is back
in the Lower House after the Upper House amended the bill to remove key
changes.
[7]
Rail unions are remaining tight lipped on the
outcome of a delegates' meeting on March 25 to consider whether
to accept a Fair Work Commission (FWC) recommendation for two workplace
agreements covering NSW train workers - or push for a single deal
(WFNSW19075).
Unions NSW assistant secretary Mark Morey told WFNSW any response would first await
meetings with members. The FWC has recommended parties adopt one agreement
for Sydney Trains, Railcorp and Transport Cleaning Services (TCS) workers -
and a separate one for NSW Trains workers. Rail entities have agreed to
meet with stakeholders by April 4 to discuss the matter. Parties
are due to report back to the cmn by April 7. The talks affect
about 10,000 NSW rail employees.
[8]
The NSW Industrial Relations Commission has
ordered Roads and Maritime Services (RMS) pay $79,111 in back pay to a
solicitor who was unfairly dismissed. It follows a 2012 order by
Commissioner Inaam Tabbaa for the reinstatement of Rosanno Ganino as a senior
solicitor at RMS. In her original finding, Cmr Tabbaa ordered RMS pay
Ganino's salary from July 2009 to the date of her 2012
reinstatement, "less amounts earned and monies already paid by
RMS". A full bench on appeal remitted the question of what were the
appropriate payment amounts unders89(3) of
the Industrial
Relations Act 1996. A key question was whether back pay owed to the
employee should be discounted in circumstances where the employer alleged
that the employee was not sufficiently diligent in seeking alternative
employment. When the matter came on for hearing, RMS advised it now
"largely agreed" with orders proposed and the issue at the heart
of the matter (ie alternative employment) had evaporated. Justice
Roger Boland ordered RMS pay Ganino her gross salary
from July 2009 until July 2012 , less $14,817 earned in
alternative employment, and $41,662 already paid by the employer; totalling
$79,111. (PSA v Roads
and Maritime Services 2014, NSWIRComm8,
14/3/14)
[9]
The Rail Tram and Bus Division Loco Division says
it will continue to argue against State Government moves to take away 1,000
staff car spots at rail stations. A spokesperson told WFNSW trains could be
delayed and workers safety put at risk if they had to drive around
searching for parks. The Govt has said the spaces will be better used by
the public.
[10]
Acting
Editor: Steve Andrew. Contact: Phone (02) 8587 7681. Managing Editor:
Peter Schwab. Email:peter.schwab@thomsonreuters.com.Product Code:
3140419085.
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