PRESSURE is increasing on Opposition Leader Tony Abbott to broaden his promised investigation into the Australian Workers Union affair, with two Liberal MPs urging a general inquiry into union behaviour and governance.
Shadow parliamentary secretary Jamie Briggs, who advised former prime minister John Howard on industrial relations, said there seemed to be a "cultural problem" in parts of the union movement.
He said such a broad inquiry should include looking at industry superannuation funds about which allegations had been made.
Mr Briggs said all options should be kept open on the form of the inquiry.
After Mr Abbott last week promised a Coalition government would order the probe into the AWU slush fund affair, former Liberal workplace minister Peter Reith urged that it be made more general, and also pointed to the importance of probing industry superannuation funds.
Former union leader and one-time New South Wales Labor treasurer Michael Costa has said the Gillard government should order a judicial inquiry into the management of unions.
Victorian Liberal backbencher Dan Tehan urged an inquiry into union governance in an address to the HR Nicholls Society on Monday night.
"Tony Abbott has called for a judicial review into the allegations of a slush fund in the AWU, but equally there is scope for this to go further and to examine other rorts, such as those discovered in the HSU," Mr Tehan said.
Such a review could also consider whether industry associations and unions should have higher standards of corporate governance, using the changes being proposed under Coalition policy as a starting point, he said.
Mr Abbott has put forward a private member's bill, under which officials would face tough penalties for breaches. Union officials who misused funds would face fines of up to $220,000 and up to five years' jail.
Mr Tehan said that if the advocates of change were to bring about the next stage of much-needed workplace changes, which were as necessary as when the HR Nicholls Society was founded in 1986, "we are going to have to be much smarter in how we prosecute the case".
The government had talked about improving productivity and reducing social disadvantage, and these were tests by which its performance on industrial relations should be judged, he said. What was happening to productivity and long-term and youth unemployment was bearing out predictions about the problems of the Labor industrial relations system.
"In my view, a decent and genuine review into the Fair Work Act and a judicial inquiry into union governance should provide the circuit-breaker to force a new political breakout," he told the society function.
Frequently Asked Questions about this Article…
What investigation has Tony Abbott promised into the AWU slush fund affair?
Tony Abbott has promised that a Coalition government would order a probe into the Australian Workers Union (AWU) slush fund affair. He has also put forward a private member's bill proposing tougher penalties for union officials who breach rules, including fines and potential jail time.
Why are some Liberal MPs urging a broader inquiry into union behaviour and governance?
Several Liberal MPs, including Jamie Briggs, Peter Reith and Dan Tehan, have urged broadening the inquiry because they see a cultural problem in parts of the union movement and want a general review of union behaviour and governance rather than a narrowly focused probe.
Could industry superannuation funds be included in a union inquiry?
Yes. The article reports calls from MPs such as Jamie Briggs and Peter Reith to include industry superannuation funds in any broad inquiry, because allegations have been made about their management and they could be examined alongside union governance.
Who has called for a judicial inquiry into the management of unions?
Former union leader and one-time New South Wales Labor treasurer Michael Costa has said the government should order a judicial inquiry into the management of unions. Tony Abbott has also called for a judicial review into the AWU allegations.
What penalties has Tony Abbott proposed for union officials who misuse funds?
Under the private member's bill Tony Abbott has put forward, union officials who misuse funds could face fines of up to $220,000 and up to five years' jail, reflecting tougher penalties for breaches by officials.
How might a review of the Fair Work Act fit into proposed union governance reforms?
Some commentators in the article argued that a decent and genuine review of the Fair Work Act, alongside a judicial inquiry into union governance, could act as a 'circuit-breaker' to force broader workplace reform and improve industrial relations outcomes.
What do proponents say a union governance review should aim to achieve for productivity and unemployment?
Proponents cited in the article say a review should focus on improving productivity and reducing social disadvantage. They argued these outcomes are tests by which industrial relations performance should be judged, pointing to concerns about long-term and youth unemployment under the current system.
Are there suggestions to raise corporate governance standards for unions and industry associations?
Yes. Speakers like Dan Tehan suggested the review could consider whether unions and industry associations should face higher standards of corporate governance, using changes proposed under Coalition policy as a starting point.
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