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| The questions Bill Shorten will face at royal commission appearance | The questions Bill Shorten will face at royal commission appearance |
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| Bill Shorten faces a test of his political leadership and his personal integrity when he appears before a royal commission hearing on Wednesday to answer questions about his union record. | Bill Shorten faces a test of his political leadership and his personal integrity when he appears before a royal commission hearing on Wednesday to answer questions about his union record. |
| The Labor leader has been summonsed to the Coalition-established royal commission into trade union governance and corruption, whose present focus is the Australian Workers’ Union (AWU) and the prevalence of agreements in which employers paid the union dues of their employees. | The Labor leader has been summonsed to the Coalition-established royal commission into trade union governance and corruption, whose present focus is the Australian Workers’ Union (AWU) and the prevalence of agreements in which employers paid the union dues of their employees. |
| Related: Bill Shorten and the Australian Workers' Union – the allegations explained | Related: Bill Shorten and the Australian Workers' Union – the allegations explained |
| Shorten will be asked questions about the practices that were in place when he was secretary of the AWU’s Victorian branch from 1998 to 2006. He also served as the union’s national secretary from 2001 until his entry into federal parliament in 2007. | Shorten will be asked questions about the practices that were in place when he was secretary of the AWU’s Victorian branch from 1998 to 2006. He also served as the union’s national secretary from 2001 until his entry into federal parliament in 2007. |
| Shorten has previously said he had “zero tolerance” for corruption and was happy to answer questions about his record of “standing up for workers”. But he accused the prime minister, Tony Abbott, of setting up the royal commission “to smear his political opponents”. | Shorten has previously said he had “zero tolerance” for corruption and was happy to answer questions about his record of “standing up for workers”. But he accused the prime minister, Tony Abbott, of setting up the royal commission “to smear his political opponents”. |
| On the eve of the hearing, the Australian Financial Review reported that the AWU’s Victorian branch no longer had records of invoices sent to employers before 2003. | On the eve of the hearing, the Australian Financial Review reported that the AWU’s Victorian branch no longer had records of invoices sent to employers before 2003. |
| Union sources confirmed the substance of the story to Guardian Australia, but said the absence of records was explained by a computer upgrade in 2003. | Union sources confirmed the substance of the story to Guardian Australia, but said the absence of records was explained by a computer upgrade in 2003. |
| The sources pointed to section 252 of the Fair Work (Registered Organisations) Act, which said unions “must retain the financial records ... for a period of seven years after the completion of the transactions to which they relate”. | The sources pointed to section 252 of the Fair Work (Registered Organisations) Act, which said unions “must retain the financial records ... for a period of seven years after the completion of the transactions to which they relate”. |
| The royal commission, headed by the former high court judge Dyson Heydon, was due to question Shorten in August or September. But in the face of media questions about his union record, Shorten successfully requested an earlier hearing during the winter parliamentary recess. | The royal commission, headed by the former high court judge Dyson Heydon, was due to question Shorten in August or September. But in the face of media questions about his union record, Shorten successfully requested an earlier hearing during the winter parliamentary recess. |
| Shorten is due to give evidence in Sydney on Wednesday but the hearing could continue on Thursday if needed. | |
| Several frontbench colleagues have expressed confidence that Shorten will perform strongly at the royal commission. | Several frontbench colleagues have expressed confidence that Shorten will perform strongly at the royal commission. |
| The shadow treasurer, Chris Bowen, said Shorten’s leadership was strong enough to withstand the inquiry. | The shadow treasurer, Chris Bowen, said Shorten’s leadership was strong enough to withstand the inquiry. |
| “Yes, Bill Shorten has been an outstanding leader of the Labor party and will continue to do so,” Bowen said. | “Yes, Bill Shorten has been an outstanding leader of the Labor party and will continue to do so,” Bowen said. |
| “I know he’s keen to deal with these matters at the royal commission, to set the record straight from his point of view. His track record standing up for working Australians is first class and he wants to set that record very clear tomorrow. He brought forward his appearance before the royal commission because he is keen to do so.” | “I know he’s keen to deal with these matters at the royal commission, to set the record straight from his point of view. His track record standing up for working Australians is first class and he wants to set that record very clear tomorrow. He brought forward his appearance before the royal commission because he is keen to do so.” |
| Abbott said the conduct of the AWU was “a matter for the leader of the opposition to explain”. | Abbott said the conduct of the AWU was “a matter for the leader of the opposition to explain”. |
| “There are a lot of questions that have been raised by the testimony that’s already been given in the royal commission,” the prime minister said. | “There are a lot of questions that have been raised by the testimony that’s already been given in the royal commission,” the prime minister said. |
| “In the end, what we want to come out of this is honest unions that do the right thing by their members and, plainly, it seems that there have been a lot of ghosts on the rolls of some of the unions, there have been some deals that have been done to help the unions but to dud the workers, and let’s see what light can be cast on all of that in the next day or so.” | “In the end, what we want to come out of this is honest unions that do the right thing by their members and, plainly, it seems that there have been a lot of ghosts on the rolls of some of the unions, there have been some deals that have been done to help the unions but to dud the workers, and let’s see what light can be cast on all of that in the next day or so.” |
| The commission has already heard evidence about several instances of companies paying the union dues of employees. | The commission has already heard evidence about several instances of companies paying the union dues of employees. |
| Jeremy Stoljar, counsel assisting the inquiry, has raised questions about whether such deals primarily benefited the AWU – and strengthened the power of its leaders within Labor party forums – rather than the workers the union represented. | Jeremy Stoljar, counsel assisting the inquiry, has raised questions about whether such deals primarily benefited the AWU – and strengthened the power of its leaders within Labor party forums – rather than the workers the union represented. |
| Documents presented to the royal commission show the AWU Victorian branch issued an invoice to the Victorian-based building company Winslow Constructors on 22 March 2005 for $38,278 for 105 employees’ “membership fees”. Winslow sent the AWU a list of employees. | Documents presented to the royal commission show the AWU Victorian branch issued an invoice to the Victorian-based building company Winslow Constructors on 22 March 2005 for $38,278 for 105 employees’ “membership fees”. Winslow sent the AWU a list of employees. |
| In another example, the Victorian branch invoiced the company on 29 June 2006 for $19,401 for 91 members’ fees. | In another example, the Victorian branch invoiced the company on 29 June 2006 for $19,401 for 91 members’ fees. |
| Shorten’s successor as AWU state secretary, Cesar Melhem, who served in the post from 2006 to 2013, told the commission that the Winslow had made such payments for “probably the past 20 years” but the arrangement was “with the employees’ knowledge”. | Shorten’s successor as AWU state secretary, Cesar Melhem, who served in the post from 2006 to 2013, told the commission that the Winslow had made such payments for “probably the past 20 years” but the arrangement was “with the employees’ knowledge”. |
| But Ben Davis, who took over from Melhem as the AWU’s Victorian state secretary in 2013, told the inquiry he was “decidedly uncomfortable with the whole concept” and that some employees were paid for even though they were not members. | But Ben Davis, who took over from Melhem as the AWU’s Victorian state secretary in 2013, told the inquiry he was “decidedly uncomfortable with the whole concept” and that some employees were paid for even though they were not members. |
| “We endeavoured at every point to get them to fill out membership forms. Most of them did, some of them didn’t,” Davis said. | “We endeavoured at every point to get them to fill out membership forms. Most of them did, some of them didn’t,” Davis said. |
| Davis said his concerns were partly that the membership roll was inaccurate, but he also believed that the practice eroded the AWU’s bargaining power. “I think employers paying membership dues on that scale profoundly weakens us in the workplace”. | Davis said his concerns were partly that the membership roll was inaccurate, but he also believed that the practice eroded the AWU’s bargaining power. “I think employers paying membership dues on that scale profoundly weakens us in the workplace”. |
| Davis told the inquiry he had expressed the concerns to Melhem but not to Shorten. Melhem denied wrongdoing but announced on 9 June that he was quitting as Labor’s whip in the Victorian upper house on the basis that “the continuing press speculation” was a distraction from the state government’s work. | Davis told the inquiry he had expressed the concerns to Melhem but not to Shorten. Melhem denied wrongdoing but announced on 9 June that he was quitting as Labor’s whip in the Victorian upper house on the basis that “the continuing press speculation” was a distraction from the state government’s work. |
| Shorten is also likely to face questions about tens of thousands of dollars in payments Thiess John Holland made to the AWU’s Victorian branch. The union branch, for example, reported to the Australian Electoral Commission that it received $134,792 from Thiess John Holland in the 2006-07 financial year, which it classified as “other receipt”. | Shorten is also likely to face questions about tens of thousands of dollars in payments Thiess John Holland made to the AWU’s Victorian branch. The union branch, for example, reported to the Australian Electoral Commission that it received $134,792 from Thiess John Holland in the 2006-07 financial year, which it classified as “other receipt”. |
| Thiess John Holland was the joint venture builder of Melbourne’s East Link tollway, which was completed ahead of schedule. | Thiess John Holland was the joint venture builder of Melbourne’s East Link tollway, which was completed ahead of schedule. |
| Shorten has previously defended the deal, saying he had negotiated “the best pay rates that civil construction workers had ever earned in Australia”. He suggested that Thiess John Holland had “paid for training of our delegates, paid for health and safety ... this is not unusual in the construction industry”. | Shorten has previously defended the deal, saying he had negotiated “the best pay rates that civil construction workers had ever earned in Australia”. He suggested that Thiess John Holland had “paid for training of our delegates, paid for health and safety ... this is not unusual in the construction industry”. |