Australia – Royal Commission Into Trade Union Governance And Corruption: Discussion Paper On Options For Law Reform.

The Royal Commission into Trade Union Governance and Corruption has released a Discussion Paper.¹ The purpose? Discuss options for reform in matters arising out of the Commission’s inquiries. 

 

A high-level overview of key proposals for discussion include:

 

Regulation Of Unions

 

• Adopt uniform laws in relation to the regulation of unions, including a single regulator separate and independent from the Fair Work Commission?
• Restrictions on political donations?

 

Regulation Of Union Officials

 

• Should a corporate governance model inform the regulation of union officials?
• Making officers criminally liable for an intentionally dishonest or reckless breach of their duties?

 

Disqualification Of Union Officials

 

• Additional grounds of automatic disqualification of a person for holding office in a union should be added?
• A criminal offence for a disqualified person to be involved in the management or control of a union?

 

Banning Notices And Orders

 

• Allowing a regulator to apply to a court for an order disqualifying a person from holding office in a union for a specified period?

 

Right Of Entry Permits

 

• Penalties for misuse of a right of entry permit should be increased?

 

Relevant Entities (e.g. Union-Associated Funds)

 

• Minimum governance standards be imposed on all or some 'relevant entities' (including fighting funds, election funds, superannuation funds, and other generic funds)?

 

Corrupting Benefits

 

• Creating a criminal offence for giving a 'corrupting benefit' to an organisation (in order, for example, to avoid threatened conduct by a union)? 
• A penalty of up to AUD 17m for 'body corporates' and AUD 1.7m for individuals?

 

Building And Construction Industry

 

• Specific industrial laws that apply only to building industry participants (e.g. laws for unlawful pickets)?
• More effective enforcement of injunctions and other court orders?
• Increasing penalties for engaging in secondary boycotts?

 

Interested parties are invited to provide submissions by Friday 21 August 2015.

 

End Notes:

 

1. The Discussion Paper is available here.

 

 

For further information, please contact:

 

John Cooper, Partner, Herbert Smith Freehills

john.cooper@hsf.com