One of Canberra's most highly paid union officials was grilled for a second day over his union's complex and lucrative relationship with the ACT's Tradies clubs on Wednesday.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
ACT secretary of the Construction, Forestry, Mining and Energy Union Dean Hall was unable to tell the Royal Commission into Trade Union Governance and Corruption why his branch's survival was deemed "dependent on financial support by the Canberra Tradesmen's Union Club", in the CFMEU's 2014 financial report.
Mr Hall himself signed off on the report.
Senior counsel assisting the royal commission, Sandra McNaughton, queried the assertion, noting The Tradies donations were only the third largest source of CFMEU income last year.
The club, which operates The Tradies clubs in Woden and Dickson, gave the CFMEU's ACT branch $555,817 in 2014.
Income from trusts, including the CFMEU's training arm, known as CETW/CSI, was $825,891 and members' dues came to almost $1.4 million.
In 2013, The Tradies gave the CFMEU branch $718,320.
In 2012 the Canberra Tradesmen's Union Club Community Fund (CTUCCF) also paid $170,000 to the CFMEU through a proxy, Construction Charitable Works Ltd (CCW) for management fees and training gap payments. These obligations are ongoing.
Mr Hall, a director of both the Woden and Canberra Tradesmen's Union Clubs, the CTUCCF, CCW and CETW/CSI, was paid $190,431 by the CFMEU in 2014. This included $33,000 in cashed out leave and rostered days off.
Mr Hall, who signed off on the financial report as the accounting officer, could not say why the accountant had highlighted the Tradies as an "economic dependency".
He had earlier been questioned about the use of funds donated by the two clubs's jointly operated community fund to CCW to cover training gap payments to CETW/CSI, the union's proxy training arm.
"The Tradies [Woden and Canberra] are making large donations to CCW [and] it would appear a large portion of these donations goes to paying gap payments through to CSI which goes through, in turn, to the CFMEU," Ms McNaughton said.
"[If] CSI could offer discounts to apprentices the money that's given to CCW could be used for other things."
When Mr Hall said the clubs were happy for the funds to be spent that way Ms McNaughton put it to him the arrangement allowed them to minimise their tax obligations.
Donations to the charity are deductible; direct donations to the union are not.
Mr Hall said this was not the case, that the donations to the charity fund were made to comply with the clubs' community contributions requirement.
"The club in itself almost gives double what it is required to give," he said. "They're some of the most generous donating entities of all the clubs in the territory and have been for years.
"What they are doing is fulfilling what they're set up for which is to look after people in the construction industry. It's in line with their objectives."
Ms McNaughton also put it to Mr Hall the CFMEU had introduced a mandatory income protection scheme into its EBAs in order to generate a revenue stream.
She alleged the provider, Jardine Lloyd Thompson Australia, was chosen because it offered the best deal for the union, not for the members.
CETW/CSI was paid more than $200,000 in promoters fees for the scheme, known as Built-Plus, in 2013 and 2014.
"The scheme is not insurance; there is no guarantee any money will ever be paid to every worker covered by this scheme," Ms McNaughton said.
Mr Hall said he had been aware payments were at the discretion of JLT, but defended it as one of the best products available. He said when union members voted to accept enterprise agreements they were voting to endorse Built-Plus.
