Christopher Pyne (Sturt, Liberal Party, Leader of the House) Share this | Hansard source

( I move:

That this bill be now read a second time.

Unions and employer associations have a privileged position in the workplace relations system and the economy more broadly, and their members place a great deal of trust in them.

There is absolutely no place for those who breach this trust and act in their own interest at the expense of members.

There is also no place for those who show nothing but contempt for the laws that apply equally to all Australians.

That is why we committed at the last election to implement the changes in this bill to ensure that unions, employer associations and their officials act with integrity.

The changes in the bill strengthen the grounds for the Fair Work Commission and the Federal Court to deal effectively with the financial misconduct, disregard for the law and abandonment of members that has been all too common in recent times.

The Royal Commission into Trade Union Governance and Corruption identified countless examples of officials breaching their duties, engaging in blackmail, extortion, coercion and secondary boycott conduct, abusing their rights of entry, acting in contempt of court or failing to stop their organisations from repeatedly breaking the law.

The bill will restore integrity to registered organisations through four improvements to the law.

First, the bill will create a public interest test to be applied by the Fair Work Commission when unions or employer associations seek to merge.

When companies seek to merge, they must first satisfy a regulator—the ACCC—such a merger won't substantially lessen competition.

This competition test is like a public interest test for companies seeking to merge.

By comparison, unions and employer associations face no similar test. Currently, the Fair Work Commission has very limited ability to do anything other than effectively rubber stamp a merger approved by just a bare majority of members.

There are no general public interest considerations and there is very limited scope for affected parties to raise any concerns about a proposed merger of registered organisations.

Some unions and employer groups have greater assets than many companies. Some also have a capacity to disrupt major sections of the economy. And considering their privileged position, including tax exempt status, it is especially important that they are accountable.

If large, powerful unions or employer groups seek to become more powerful, with more coverage across the economy, then a public interest test should apply.

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