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Bill Shorten grilled about workplace deals and campaign donations at royal commission – live Bill Shorten grilled about workplace deals and campaign donations at royal commission – live
(7 months later)
4.31pm AEST07:31 7.31am BST
07:31
Until tomorrow young #turcsUntil tomorrow young #turcs
Lovely picture, sums it up really.Lovely picture, sums it up really.
So that was a very interesting day, all in all. Let’s walk through carefully what we learned over the past several hours. Under cross examination from counsel assisting, Jeremy Stoljar, here is what Labor leader Bill Shorten told the trade union royal commission on Wednesday:So that was a very interesting day, all in all. Let’s walk through carefully what we learned over the past several hours. Under cross examination from counsel assisting, Jeremy Stoljar, here is what Labor leader Bill Shorten told the trade union royal commission on Wednesday:
There was more, but those were the main points.There was more, but those were the main points.
Because Shorten will be back tomorrow, so will I.Because Shorten will be back tomorrow, so will I.
Thanks for your company today. Do join me then.Thanks for your company today. Do join me then.
4.08pm AEST07:08 7.08am BST
07:08
It being 4pm, today’s hearing has wrapped. Shorten will be back in the box tomorrow because we are nowhere near through with the questions.It being 4pm, today’s hearing has wrapped. Shorten will be back in the box tomorrow because we are nowhere near through with the questions.
I’ll be back shortly with a summation of today.I’ll be back shortly with a summation of today.
4.05pm AEST07:05 7.05am BST
07:05
Stoljar repeats his argument that the commission can’t judge agreements properly if it gets inaccurate stat decs. Shorten says he is then in the same position as the commission then, because he relied on the stat decs too.Stoljar repeats his argument that the commission can’t judge agreements properly if it gets inaccurate stat decs. Shorten says he is then in the same position as the commission then, because he relied on the stat decs too.
4.01pm AEST07:01 7.01am BST
07:01
Stoljar says the AWU stat dec has not been filled out correctly. The result of that is the industrial commission didn’t have the information it needed before stamping the Cleanevent agreement. Shorten acknowledges an absence of fine print disclosure. I see what you are saying.Stoljar says the AWU stat dec has not been filled out correctly. The result of that is the industrial commission didn’t have the information it needed before stamping the Cleanevent agreement. Shorten acknowledges an absence of fine print disclosure. I see what you are saying.
But he returns to the point, the workers voted for this agreement.But he returns to the point, the workers voted for this agreement.
Commissioner Heydon then asks his first question of the day. He wants to know whether AWU officials had to provide him with detailed briefings on agreements, like a cabinet submission, or whether it was an informal process in the AWU.Commissioner Heydon then asks his first question of the day. He wants to know whether AWU officials had to provide him with detailed briefings on agreements, like a cabinet submission, or whether it was an informal process in the AWU.
Shorten says given it is impossible for union secretaries to be across every agreement under negotiation, he imposed a system of checks and balances. There were report backs, but he makes it clear there was a degree of delegation.Shorten says given it is impossible for union secretaries to be across every agreement under negotiation, he imposed a system of checks and balances. There were report backs, but he makes it clear there was a degree of delegation.
Shorten:Shorten:
I can’t pretend to you commissioner that its as rigorous as a cabinet process but there’s a degree of system in it.I can’t pretend to you commissioner that its as rigorous as a cabinet process but there’s a degree of system in it.
Heydon is concerned whether the cleaners knew what they were signing up to. Cleaners are rather low down the social pecking order, he notes. Shorten says organising event cleaners is a difficult process, and that’s why workplace delegates are important and involved. Heydon says so there weren’t meetings and briefings, it was more a process of checking the mood? Shorten says meetings and briefings were likely part of the mix.Heydon is concerned whether the cleaners knew what they were signing up to. Cleaners are rather low down the social pecking order, he notes. Shorten says organising event cleaners is a difficult process, and that’s why workplace delegates are important and involved. Heydon says so there weren’t meetings and briefings, it was more a process of checking the mood? Shorten says meetings and briefings were likely part of the mix.
Updated at 4.07pm AEST Updated
3.49pm AEST06:49 at 7.07am BST
6.49am BST
06:49
There has been much cross referencing between the company award and the agreement. Shorten is saying he isn’t aware if there was a reduction in casual pay rates along the lines being presented by Stoljar.There has been much cross referencing between the company award and the agreement. Shorten is saying he isn’t aware if there was a reduction in casual pay rates along the lines being presented by Stoljar.
He thinks its strange that Cleanevent employees would have voted in favour of an agreement that dudded them. Shorten says to Stoljar, I’m not saying you are wrong – but his argument is this likely is more complex than it appears.He thinks its strange that Cleanevent employees would have voted in favour of an agreement that dudded them. Shorten says to Stoljar, I’m not saying you are wrong – but his argument is this likely is more complex than it appears.
There is clearly some material from Cleanevent or from another source which goes to an alleged under payment of wages. I haven’t seen that, but both Shorten and Stoljar are referencing it in this period of cross examination and testimony.There is clearly some material from Cleanevent or from another source which goes to an alleged under payment of wages. I haven’t seen that, but both Shorten and Stoljar are referencing it in this period of cross examination and testimony.
3.38pm AEST06:38 6.38am BST
06:38
Stoljar wants to know whether the AWU recommended members endorse the Cleanevent agreement. Shorten thinks so, but he’s not entirely sure.Stoljar wants to know whether the AWU recommended members endorse the Cleanevent agreement. Shorten thinks so, but he’s not entirely sure.
We are now going to the no-disadvantage test process. Statutory declarations are given to the industrial commission in support of workplace agreements. Stoljar says an AWU stat dec on Cleanevent doesn’t reflect the fact that some workers, the casuals, got below award rates of pay.We are now going to the no-disadvantage test process. Statutory declarations are given to the industrial commission in support of workplace agreements. Stoljar says an AWU stat dec on Cleanevent doesn’t reflect the fact that some workers, the casuals, got below award rates of pay.
Shorten says he would have relied on the opinion of the industrial officer who signed off on the stat dec, and he had a process of stress testing.Shorten says he would have relied on the opinion of the industrial officer who signed off on the stat dec, and he had a process of stress testing.
I cannot say I took the ruler over every clause and every proposition.I cannot say I took the ruler over every clause and every proposition.
Updated at 3.46pm AEST Updated
3.29pm AEST06:29 at 6.46am BST
6.29am BST
06:29
Shorten has been given documentation from Cleanevent characterising their attitude to the EBA. There’s also some correspondence from the rival union United Voice, then the LHMU, which withdrew from negotiations.Shorten has been given documentation from Cleanevent characterising their attitude to the EBA. There’s also some correspondence from the rival union United Voice, then the LHMU, which withdrew from negotiations.
While this is going on, the quick quotes quill of the Labor party (justifiably enough) is reminding folks covering #turc today how many times Tony Abbott and Joe Hockey have had to amend the electoral returns. We have made the point already that the disclosure regime is an ass. Indeed it is.While this is going on, the quick quotes quill of the Labor party (justifiably enough) is reminding folks covering #turc today how many times Tony Abbott and Joe Hockey have had to amend the electoral returns. We have made the point already that the disclosure regime is an ass. Indeed it is.
3.23pm AEST06:23 6.23am BST
06:23
And we’re back. Back to Cleanevent and a query about how the agreement passed the no-disadvantage test when casuals were getting below award rates.And we’re back. Back to Cleanevent and a query about how the agreement passed the no-disadvantage test when casuals were getting below award rates.
Shorten says the members vote on agreements. You wouldn’t have an agreement pass the commission if it didn’t pass the no-disadvantage test, he says. Shorten says the AWU’s priority wasn’t actually passing the legal test, its priority was having agreements that were fair and reasonable.Shorten says the members vote on agreements. You wouldn’t have an agreement pass the commission if it didn’t pass the no-disadvantage test, he says. Shorten says the AWU’s priority wasn’t actually passing the legal test, its priority was having agreements that were fair and reasonable.
That’s what motivated us.That’s what motivated us.
Stoljar wants to know if specific discussions took place about how the Cleanevent agreement would pass the no-disadvantage test, given the problem with the rates of pay. I don’t remember, Shorten says. If he had, it wouldn’t have been unusual in working agreements through.Stoljar wants to know if specific discussions took place about how the Cleanevent agreement would pass the no-disadvantage test, given the problem with the rates of pay. I don’t remember, Shorten says. If he had, it wouldn’t have been unusual in working agreements through.
3.06pm AEST06:06 6.06am BST
06:06
Shorten has called for a five minute recess. I think we should all get a cup of tea for a moment. We deserve it.Shorten has called for a five minute recess. I think we should all get a cup of tea for a moment. We deserve it.
2.59pm AEST05:59 5.59am BST
05:59
Unless there’s a smoking gun about to shoot off from behind this evidence, this passage of testimony does underscore the point I made in our opening post today. Payments, yes. Disclosures, yes.Unless there’s a smoking gun about to shoot off from behind this evidence, this passage of testimony does underscore the point I made in our opening post today. Payments, yes. Disclosures, yes.
But I really don’t quite fathom why we’d re-prosecute workplace agreements that were struck under the relevant law and stamped by the regulator. Providing evidence by case studies that the AWU was a tame cat union really doesn’t add anything to the sum of human knowledge. We do know that. That was their pitch to the bosses during this period. This was also a period in Australian history where fashionable people were highly critical about union militancy.But I really don’t quite fathom why we’d re-prosecute workplace agreements that were struck under the relevant law and stamped by the regulator. Providing evidence by case studies that the AWU was a tame cat union really doesn’t add anything to the sum of human knowledge. We do know that. That was their pitch to the bosses during this period. This was also a period in Australian history where fashionable people were highly critical about union militancy.
2.53pm AEST05:53 5.53am BST
05:53
He’s asked about a donation from Cleanevent. Shorten says there was one discussion about a donation. He doesn’t recall when.He’s asked about a donation from Cleanevent. Shorten says there was one discussion about a donation. He doesn’t recall when.
2.50pm AEST05:50 5.50am BST
05:50
Stoljar has tracked back now to Cleanevent and pay rates. We were in this territory just before the lunch break. You might remember Shorten told the counsel assisting not to judge him retrospectively for a process he parted company with. Shorten, with a little help from Commissioner Heydon, has just asked to see the relevant award so he can check whether some of the figures Stoljar is reading out are correct and in context.Stoljar has tracked back now to Cleanevent and pay rates. We were in this territory just before the lunch break. You might remember Shorten told the counsel assisting not to judge him retrospectively for a process he parted company with. Shorten, with a little help from Commissioner Heydon, has just asked to see the relevant award so he can check whether some of the figures Stoljar is reading out are correct and in context.
Shorten tells counsel assisting the 2006 agreement he presided over was never designed to last for nine years. He says Stoljar has to understand the industry he’s talking about in order to understand real world conditions in that industry. Yes there are some award rates that look good but in the real world, but truth is the workers don’t get them.Shorten tells counsel assisting the 2006 agreement he presided over was never designed to last for nine years. He says Stoljar has to understand the industry he’s talking about in order to understand real world conditions in that industry. Yes there are some award rates that look good but in the real world, but truth is the workers don’t get them.
Stoljar, to Shorten.Stoljar, to Shorten.
Q: You are saying the truth of the matter is whatever is negotiated in the award, people don’t get it?Q: You are saying the truth of the matter is whatever is negotiated in the award, people don’t get it?
Shorten says the cleaning industry sees pyramid sub contracting and all kinds of sub optimal practices. He says in the real world, some employers take advantage of their employees.Shorten says the cleaning industry sees pyramid sub contracting and all kinds of sub optimal practices. He says in the real world, some employers take advantage of their employees.
Stoljar asks the witness – so you think the response to poor practice is to strike a sub-optimal EBA?Stoljar asks the witness – so you think the response to poor practice is to strike a sub-optimal EBA?
Shorten:Shorten:
Not at all. That’s not what I’m saying.Not at all. That’s not what I’m saying.
2.37pm AEST05:37 5.37am BST
05:37
Stoljar asks whether it is commonplace for unions to donate staff to campaigns. Shorten says he believes it is. Are these incidents disclosed, Stoljar wonders? You’d have to look at other specific examples, the Labor leader says.Stoljar asks whether it is commonplace for unions to donate staff to campaigns. Shorten says he believes it is. Are these incidents disclosed, Stoljar wonders? You’d have to look at other specific examples, the Labor leader says.
Stoljar wants to know if he’s ever heard of any other example where a company has in essence donated a person to a political campaign.Stoljar wants to know if he’s ever heard of any other example where a company has in essence donated a person to a political campaign.
Shorten:Shorten:
My answer is I don’t know, but I’m sure that companies have contributed resources in dollars or in kind.My answer is I don’t know, but I’m sure that companies have contributed resources in dollars or in kind.
Commissioner Heydon offers Shorten a short break if he wants one.Commissioner Heydon offers Shorten a short break if he wants one.
He notes it can be tiring to be a witness. Shorten declines the offer, for now at least.He notes it can be tiring to be a witness. Shorten declines the offer, for now at least.
Updated at 2.38pm AEST Updated
2.32pm AEST05:32 at 5.38am BST
5.32am BST
05:32
I missed a short sequence in posting that Shorten letter. The Labor leader has made it clear that previous returns were sent to the appropriate places by members of his staff. He didn’t personally sign off on them.I missed a short sequence in posting that Shorten letter. The Labor leader has made it clear that previous returns were sent to the appropriate places by members of his staff. He didn’t personally sign off on them.
He says he believed he conformed with the Labor party’s disclosure practices. When he knew the disclosure was incomplete, he made an update. Shorten says this is common behaviour when it comes to disclosures. (He’s right on that point, unfortunately for all of us.)He says he believed he conformed with the Labor party’s disclosure practices. When he knew the disclosure was incomplete, he made an update. Shorten says this is common behaviour when it comes to disclosures. (He’s right on that point, unfortunately for all of us.)
2.26pm AEST05:26 5.26am BST
05:26
Bill Shorten's correcting letter to the ALPBill Shorten's correcting letter to the ALP
This, for the record, was the letter Shorten sent to the Victorian ALP to advise of the updates to the disclosures on 6 July.This, for the record, was the letter Shorten sent to the Victorian ALP to advise of the updates to the disclosures on 6 July.
Please note that the disclosure provided by my former staff to the ALP (Victorian Branch) for the 2007 federal election was incomplete. Can you please amend the ALP (Victorian Branch) Financial Disclosures – Annual Returns by including the following amounts of $10,500 or more received by the Maribyrnong FEA, namely:Please note that the disclosure provided by my former staff to the ALP (Victorian Branch) for the 2007 federal election was incomplete. Can you please amend the ALP (Victorian Branch) Financial Disclosures – Annual Returns by including the following amounts of $10,500 or more received by the Maribyrnong FEA, namely:
1 July 2006 to 30 June 2007:1 July 2006 to 30 June 2007:
Please note I also received a benefit from the AWU – National Office for campaign support but less than the $10,500 disclosure amount.Please note I also received a benefit from the AWU – National Office for campaign support but less than the $10,500 disclosure amount.
1 July 2007 – 30 June 2008:1 July 2007 – 30 June 2008:
As it has been difficult to obtain precise information on benefits received, I have relied on the higher quantums in the information provided to me. Can you please provide me with a copy of any amended disclosures or correspondence to the Australian Electoral Commission arising from this matter for my records.As it has been difficult to obtain precise information on benefits received, I have relied on the higher quantums in the information provided to me. Can you please provide me with a copy of any amended disclosures or correspondence to the Australian Electoral Commission arising from this matter for my records.
Thank you in anticipation of your assistance.Thank you in anticipation of your assistance.
Updated at 2.32pm AEST Updated
2.22pm AEST05:22 at 5.32am BST
5.22am BST
05:22
Stoljar sees a coincidence in the timing of the disclosure. Shorten doesn’t see a coincidence.Stoljar sees a coincidence in the timing of the disclosure. Shorten doesn’t see a coincidence.
2.19pm AEST05:19 5.19am BST
05:19
Shorten’s late disclosure to the AEC went ahead on July 6 – although he’s making clear he’s been pursuing this matter behind the scenes for months. Why the delay, Stoljar wants to know? We were chasing various materials, Shorten says. He says he wanted to have very good legal advice to do it properly.Shorten’s late disclosure to the AEC went ahead on July 6 – although he’s making clear he’s been pursuing this matter behind the scenes for months. Why the delay, Stoljar wants to know? We were chasing various materials, Shorten says. He says he wanted to have very good legal advice to do it properly.
Bill Shorten:Bill Shorten:
As of July the 6th, I was able to make a complete disclosure.As of July the 6th, I was able to make a complete disclosure.
Stoljar wants to know when material was sought from Lance Wilson. Shorten is not sure.Stoljar wants to know when material was sought from Lance Wilson. Shorten is not sure.
You told me you’ve known about this problem from months and you’ve only just disclosed it, Stoljar persists.You told me you’ve known about this problem from months and you’ve only just disclosed it, Stoljar persists.
Q: Were you waiting to see whether this would appear in the royal commission?Q: Were you waiting to see whether this would appear in the royal commission?
Shorten:Shorten:
Not at all.Not at all.
2.14pm AEST05:14 5.14am BST
05:14
Bill Shorten is back in the witness box.Bill Shorten is back in the witness box.
Stoljar is now going through Shorten’s late disclosures to the AEC. He’s trying to tally the amounts on the discloures. He’s clearly a bit confused. Shorten says he’s been back to the union and the recent account to the AEC represents his best endeavours.Stoljar is now going through Shorten’s late disclosures to the AEC. He’s trying to tally the amounts on the discloures. He’s clearly a bit confused. Shorten says he’s been back to the union and the recent account to the AEC represents his best endeavours.
Shorten says part of trying to account for the past has involved getting Lance Wilson’s group certificates. He says he instructed his lawyers to follow up on this issue once it became clear to him that the royal commission would be pursuing this matter. He said he instructed his lawyers to make good in the past few weeks.Shorten says part of trying to account for the past has involved getting Lance Wilson’s group certificates. He says he instructed his lawyers to follow up on this issue once it became clear to him that the royal commission would be pursuing this matter. He said he instructed his lawyers to make good in the past few weeks.
He notes it’s been a process to get information from the AWU.He notes it’s been a process to get information from the AWU.
2.07pm AEST05:07 5.07am BST
05:07
As the commission resumes, here’s an excerpt from an excellent column written by Bernard Keane from Crikey on how lax our disclosure regime is.As the commission resumes, here’s an excerpt from an excellent column written by Bernard Keane from Crikey on how lax our disclosure regime is.
If all else fails, you can always put a late return in. The federal reporting laws are so lax that you can file late, or even file once and then substantially amend your initial filing.If all else fails, you can always put a late return in. The federal reporting laws are so lax that you can file late, or even file once and then substantially amend your initial filing.
Knowing that the media only pays attention to donations in the first week of February when annual returns are made, if you file a return after that, it’s unlikely to receive any media attention. Some large donors to the NSW Liberal party, for example, filed returns as late as June this year for the 2012-13 financial year.Knowing that the media only pays attention to donations in the first week of February when annual returns are made, if you file a return after that, it’s unlikely to receive any media attention. Some large donors to the NSW Liberal party, for example, filed returns as late as June this year for the 2012-13 financial year.
In short, the federal donation disclosure “regime” is a voluntary system that actively encourages non-transparency by donors and political parties. And as state regimes, under the pressure of corruption and rorting, become stronger, the credibility gap will only continue to grow.In short, the federal donation disclosure “regime” is a voluntary system that actively encourages non-transparency by donors and political parties. And as state regimes, under the pressure of corruption and rorting, become stronger, the credibility gap will only continue to grow.
Updated at 2.10pm AEST Updated
1.57pm AEST04:57 at 5.10am BST
4.57am BST
04:57
Just a note in passing. Shorten’s colleague from both their union days and from politics, Greg Combet, has been sitting up with the Labor leader’s legal team for the duration of this morning’s evidence. Moral or practical support, I’m not sure, but if time permits I’ll find out.Just a note in passing. Shorten’s colleague from both their union days and from politics, Greg Combet, has been sitting up with the Labor leader’s legal team for the duration of this morning’s evidence. Moral or practical support, I’m not sure, but if time permits I’ll find out.
1.36pm AEST04:36 4.36am BST
04:36
There’s not much commentary around at the present time – for good reason – it’s generally best to watch first and pontificate second. Most of the news coverage right now leads on the donation Shorten forgot to declare until last week.There’s not much commentary around at the present time – for good reason – it’s generally best to watch first and pontificate second. Most of the news coverage right now leads on the donation Shorten forgot to declare until last week.
The only comment piece I’ve found in a quick scan is Dennis Shanahan in The Australian, who thinks the morning is not going well.The only comment piece I’ve found in a quick scan is Dennis Shanahan in The Australian, who thinks the morning is not going well.
Bill Shorten’s first appearance in the witness box of the royal commission into trade unions has not started well. The opposition leader’s demeanour has been calm and he keeps smiling a lot but within two hours of stepping into the box he’s admitted that the royal commission has uncovered a failure to report to the Australian Electoral Commission donations from a building developer.Bill Shorten’s first appearance in the witness box of the royal commission into trade unions has not started well. The opposition leader’s demeanour has been calm and he keeps smiling a lot but within two hours of stepping into the box he’s admitted that the royal commission has uncovered a failure to report to the Australian Electoral Commission donations from a building developer.
For now I’ll just bounce quickly of that Shanahan thought.For now I’ll just bounce quickly of that Shanahan thought.
After the last few hours of close watching, and acknowledging the distance we still have to travel, I think there’s an obvious systemic comment to make, and I’ll add another reflection about Shorten’s attributes.After the last few hours of close watching, and acknowledging the distance we still have to travel, I think there’s an obvious systemic comment to make, and I’ll add another reflection about Shorten’s attributes.
This royal commission, rather like the Icac process in NSW before it, shines a light on Australia’s backroom political culture, and also the efficacy of our donations and disclosure regime. Just as Icac gave us a window on a world where politics falls over itself to chase the money it believes it needs to pursue the artform, on a smaller scale here, we have a real insight into how people get into politics and win seats.This royal commission, rather like the Icac process in NSW before it, shines a light on Australia’s backroom political culture, and also the efficacy of our donations and disclosure regime. Just as Icac gave us a window on a world where politics falls over itself to chase the money it believes it needs to pursue the artform, on a smaller scale here, we have a real insight into how people get into politics and win seats.
Shorten asked a business contact if he could kick in to his 2007 campaign for Maribynong and the business man supplied $40,000 to employ a young campaign director. Obviously, if we had a disclosure regime that did its job, and if politicians as a consequence took their disclosure obligations seriously, then we would have known this at the time, not eight years later.Shorten asked a business contact if he could kick in to his 2007 campaign for Maribynong and the business man supplied $40,000 to employ a young campaign director. Obviously, if we had a disclosure regime that did its job, and if politicians as a consequence took their disclosure obligations seriously, then we would have known this at the time, not eight years later.
The thing about late amendments to the electoral commission disclosure records is they happen all the time – and too often after an inquiry has sparked a correction of the record. It’s really not good enough. It hasn’t been for a long time. The question is can anyone find the backbone and the will to do something about it.The thing about late amendments to the electoral commission disclosure records is they happen all the time – and too often after an inquiry has sparked a correction of the record. It’s really not good enough. It hasn’t been for a long time. The question is can anyone find the backbone and the will to do something about it.
Now to attributes. So far, Shorten has acquitted himself reasonably well in the box, and clearly his confidence has increased as the day has gone on. But there’s that detail problem.Now to attributes. So far, Shorten has acquitted himself reasonably well in the box, and clearly his confidence has increased as the day has gone on. But there’s that detail problem.
It is obviously not a good look for Shorten to have forgotten to declare that a private company in essence donated a staffer to run his campaign for election in 2007. This incident of apparent oversight underlines a consistent impression Shorten projects in his public appearances: that he doesn’t much care for fine print.It is obviously not a good look for Shorten to have forgotten to declare that a private company in essence donated a staffer to run his campaign for election in 2007. This incident of apparent oversight underlines a consistent impression Shorten projects in his public appearances: that he doesn’t much care for fine print.
There are a number of questions this morning that Shorten has been unable to answer. Detail aversion might be fine in some lines of work but in politics, detail makes or breaks careers. If you approach the job as delegator in chief, you can easily come unstuck. The art of politics is being across the fine print but elevating your communication above it.There are a number of questions this morning that Shorten has been unable to answer. Detail aversion might be fine in some lines of work but in politics, detail makes or breaks careers. If you approach the job as delegator in chief, you can easily come unstuck. The art of politics is being across the fine print but elevating your communication above it.
Updated at 1.50pm AEST Updated
1.06pm AEST04:06 at 4.50am BST
4.06am BST
04:06
The commission has now adjourned for a short lunch break. I’ll have a whip around and share anything I find interesting in the coverage to date, and give you some thoughts about how I think the process is proceeding thus far.The commission has now adjourned for a short lunch break. I’ll have a whip around and share anything I find interesting in the coverage to date, and give you some thoughts about how I think the process is proceeding thus far.
12.57pm AEST03:57 3.57am BST
03:57
Counsel assisting says the Cleanevent agreement didn’t exactly deliver for workers. He’s looking at a timeframe from 2006 to 2015.Counsel assisting says the Cleanevent agreement didn’t exactly deliver for workers. He’s looking at a timeframe from 2006 to 2015.
Shorten objects to that. He says he’s had nothing to do with the Cleanevent agreement since 2006. So comparisons leading out to 2015 have nothing to do with him.Shorten objects to that. He says he’s had nothing to do with the Cleanevent agreement since 2006. So comparisons leading out to 2015 have nothing to do with him.
Bill Shorten:Bill Shorten:
You are judging me in hindsight.You are judging me in hindsight.
Stoljar says he’s not judging anyone. I’m merely asking, Mr Shorten.Stoljar says he’s not judging anyone. I’m merely asking, Mr Shorten.
Updated at 1.05pm AEST Updated
12.52pm AEST03:52 at 4.05am BST
Stoljar has worked through to a $25,000 “side deal” (counsel’s words) associated with Cleanevent. The company agreed to pay $25,000 a year for AWU memberships. This happened in 2010. When did Shorten become aware of that?
Only in very recent times.
12.47pm AEST03:47
Stoljar is now after memberships at Cleanevent. How did people at Cleanevent become members of the AWU? Was there an opt out clause? (He means workers on their employment forms would have become a member of the AWU unless they chose to opt out of that membership.)
Shorten contends workers at Cleanevent would have become AWU members in the same way they became members anywhere else.
Bill Shorten:
I’m definitely sure it wasn’t a closed shop.
Shorten says he might have aspired to have workers signed up to the AWU automtically unless they opted out of that arrangement, but he doesn’t know if that aspiration became a reality.
I honestly don’t know and I’d have to see the membership forms.
12.42pm AEST03:42
Glamour job, squeezing into the media room at royal commissions. Just thought I’d show you how spiffy it is behind the scenes.
Up in the front room, Stoljar is trying to work through when Shorten spoke to Cleanevent about the agreement, and who spoke to whom when. When did Shorten reach the conclusion that the workplace agreement would be OK to be signed off? We are currently in November 2006. He says agreements aren’t signed off without agreement from members.
Updated at 12.55pm AEST
12.37pm AEST03:37
Counsel assisting wants to know if the AWU organiser, Blanthorn, raised with him the issue of whether the Cleanevent agreement would meet the no-disdvantage test. (This is a test in industrial laws which makes sure workers aren’t worse off when they trade away conditions in wage agreements.) Possibly, Shorten suggests. There could have been discussion among the organisers.
12.33pm AEST03:33
Shorten is asked whether he socialised with Cleanevent executives during the racing carnival in Melbourne. What’s the point of this inquiry, Shorten wants to know. He suspects that sometimes lawyers on the opposing side of an argument may periodically play golf together. Shorten says he doesn’t then develop an assumption or a concern that justice in Australia isn’t working.
Stoljar moves on.
Updated at 1.00pm AEST
12.30pm AEST03:30
Stoljar wants to know which unions the AWU was trying to hold at bay to organise at Cleanevent. Shorten says there was a history of demarcation disputes between the AWU and the missos – that union is now called United Voice. He’s rejecting the characterisation that he was motivated by a desire to outflank other unions rather than look after the interests of workers. He says he didn’t express that position. Stoljar points out he was copied in on correspondence expressing that as the AWU’s position and Shorten didn’t correct the record.
Shorten can’t say one way or another.
12.25pm AEST03:25
Stoljar is quoting from a Cleanevent email that said the AWU could not trade away “core award conditions” at that time because it would “buy a fight” with other unions. It was a tactical position in other words.
Q: Would the AWU trade core conditions at other times?
Shorten says enterprise bargaining is not a simple system.
But he says he would not have conveyed that sentiment to an employer, because that’s not how he thinks. The way the AWU’s attitude is expressed in the emails is poorly expressed and doesn’t convey his sentiment. Shorten says he’s not sure whether he corrected the sentiment expressed in the email because he doesn’t have the correspondence.
12.17pm AEST03:17
Cleanevent, just for context, is one of the companies that is said to have paid AWU membership dues.
12.16pm AEST03:16
Shorten is asked whether he instructed the union to take a national approach to Cleanevent. He suggests that’s correct. Shorten attempts to explain the national organising structure of the AWU. He says an official called John Paul Blanthorn did a fair bit of work with Cleanevent. He says he’s aware an agreement being negotiated with the company in 2006 was difficult. Shorten has been handed a series of emails from the company. He’s perusing them now.
12.09pm AEST03:09
Back from its brief recess, the commission is now turning its attention to a company called Cleanevent. Stoljar establishes Shorten’s knowledge of the firm and then opens with an official called Craig Lovett. Does Shorten know him? Shorten says they are friends.
There’s just been another big document drop.
12.05pm AEST03:05
11.53am AEST02:53
Taking stock of the Shorten evidence, Wednesday morning
Bill Shorten took the stand at 10am and thus far:
As they say in our business, more to come.
Updated at 12.04pm AEST
11.38am AEST02:38
Stoljar takes Shorten to an electoral return which says he had nil donations. He says there has been a failure to disclose the fact that you received the services of Lance Wilson from the period of February through to November 2007 - correct?
Shorten says he complied with Labor party rules when it came to electoral returns. He then says another amendment has been supplied to the AEC in recent days.
Q: When was this sent?
Shorten:
Last week or the beginning of this week.
Q: Can you be more precise, when was it sent?
Shorten:
Within the last 144 hours or last Friday or Monday or Tuesday.
What I did once I saw all the royal commission papers, I went back and I have sought legal advice, worked out what needed to be done and I have now completed that. I would also say, periodically campaigns do update their information and political parties do.
Stoljar seeks and is granted a break to inspect the new material.
Marvellous. Give me a moment and I’ll summarise the developments of this morning.
Updated at 11.45am AEST
11.32am AEST02:32
There is a discussion now about Unibilt not paying all of Lance Wilson’s wages when he was working for Shorten. Stoljar is saying the AWU picked up the tab for $12,731.
Stoljar says that ended up being just something that the AWU donated rather than Unibilt?
Shorten:
If the union couldn’t recover it off Unibilt, that would be the consequence, yes.
Q: Do you know whether any approval of the members was sought in respect of that? The Donation?
Shorten says that was all after his time. He says the AWU was fully behind his campaign. The fact the AWU was supporting me was possibly as well-known as Eddie McGuire being the president of Collingwood.
Stoljar says there are other gaps.
Q: Your proposition, as I understand it from your evidence this morning, is that the $40,000-odd that Unibilt supplied to acquire Lance Wilson’s services were some form of donation. Did you declare that to the AEC for example?
The law requires the donation be disclosed.
But Shorten says the declaration has only been made recently.
Q: When you say very recently, what do you mean by that?
Shorten:
In the last few days.
11.21am AEST02:21
Stoljar points Shorten to an invoice for Lance Wilson’s services which suggests he was carrying out work for the AWU rather than for Shorten’s political campaign, which was the work he was actually doing.
This invoice is incorrect, isn’t it, Stoljar asks Shorten.
Shorten:
I think they are incomplete. They should have spelt out what he was doing.
But Shorten says the paperwork wasn’t his concern.
You are asking me to second guess someone who has drafted an invoice and to work out what is right and what is wrong about that.
11.17am AEST02:17
Stoljar, doing what cross examining lawyers do, walking back in circular motion.
Q: Did you know one of Ted Lockyer’s companies was negotiating an EBA with the AWU in May 2007?
Shorten:
It wouldn’t surprise me but I wasn’t directly involved in those negotiations.
Q: Does it cause you any concern that a company negotiating an EBA, a labour-hire company, was supporting your campaign by paying the wages of your campaign director?
Shorten says no, it doesn’t cause concern.
I don’t know but I can imagine that there are plenty of corporations in Australia who donate to the Liberal party and to the Labor party, that doesn’t cause me concern per se.
Stoljar then takes Shorten to evidence given by a current AWU official, Ben Davis. Davis has criticised the practice under Shorten and Cesar Melhelm of companies paying union dues. He says the payment compromised the union’s industrial power.
Q: You heard the evidence of Mr Davis, or perhaps you didn’t, the other day in this commission, that the current secretary of the Victorian branch, he said receiving membership from employers profoundly weakens the bargaining position of the union. Did you hear that evidence?
Shorten did. He says there’s a big point underlying it, but he defends the system that existed at that time. He says people can walk and chew gum at the same time – in this instance, look after the interests of workers in a genuine and thorough way, and have a relationship which leads to political donations.
Shorten:
I think it is a cornerstone of our electoral system that you raise electoral funds for elections but that doesn’t mean that therefore the implication can be made that the recipients are incapable of transacting their interests and their duties towards people any differently.
Updated at 11.28am AEST
11.07am AEST02:07
Now apologies on spellings, I’m going to have to check this in the break. I believed the company was Unibilt. But Stoljar is now raising another related company which is Unibuilt. Stoljar says Unibuilt (with the U) went into liquidation.
I’ll check and correct when time permits. For now I need to keep with the flow of the evidence.
11.04am AEST02:04
Persisting with Lance Wilson. Stoljar wants to know when Unibilt stopped paying his wages and the AWU started paying his wages.
Shorten isn’t sure. He suggests he wasn’t intent on the fine print.
I don’t know why it occurred. My interest was that I had a campaign person working full-time. Unibilt was good enough to provide the funding for that position. At some point, he has been transferred in employment from Unibilt to the union, and Unibilt is paying the union who would pay his wages.
For me, it was about a campaign resource, which was good.
Stoljar says hang on, you must have some recollection of this change. Why make the change?
Shorten:
I can’t tell you that, you would have to ask the Victorian branch and Unibilt.
Q: Why are documents being prepared which suggest he is an employee of the AWU who has been contracted to Unibilt?
You would have to ask the Victorian AWU why that was so.
Updated at 11.07am AEST
10.56am AEST01:56
Stoljar moves in for his point. He thinks Shorten should not be discussing a political donation with a company at the same time enterprise negotiations are going on.
Q: Isn’t that a situation in which you’re using your position as national secretary to gain an advantage for yourself, namely a full-time campaign worker?
Shorten:
Absolutely not. You have made a pretty significant statement and I wouldn’t mind having the courtesy to finish.
He says the idea that it is untoward to transact two things at once is incorrect. It’s not how things operated at the AWU.
10.51am AEST01:51
We are back to the contract for Lance Wilson. Stoljar wants to know whether an email that reads: “Hi Ted, Bill asked me to email you this letter of offer” refreshes his memory about instructing the AWU financial officer to draft the contract.
Shorten:
I am sure that I asked Mr Chen – it does help me refresh my memory – prepare a document to send to Mr Lockyer, yes.
(Lockyer is the boss of Unibilt.)
Stoljar is unhappy that Lance Wilson is described as a research officer for Unibilt when he was actually a political staffer for Shorten.
Q: Isn’t this the position, that the purported contract falsely states that Lance Wilson is a research officer with Unibilt when in fact he was your campaign director?
Shorten:
Mr Lockyer understood that he was being asked to employ a campaign resource, to employ someone on my campaign. The term ‘research officer’ is not correct. I agree with that point. He was a campaign resource. We knew that.
Q: It is not just a question of terminology, he wasn’t working for Unibilt at all, was he?
He was employed by Unibilt and donated to work on my campaign.
We are back now to the enterprise agreement for Unibilt and the connection with a donation.
Stoljar wants to know how Shorten managed to get the donation of his campaign director. Shorten says he asked Ted Lockyer and he said yes, there’s no other way these things go down.
I find, in my experience, in terms of donations, either you have to ask or someone has to offer – and that is what happened here.
Shorten is continuing to say he didn’t have oversight of the enterprise agreement with Unibilt. That was done in Victoria.
Updated at 10.58am AEST
10.41am AEST01:41
Stoljar wants to know who were the paid members of his campaign team in 2007. There’s some discussion about a desire by one person that her name remain confidential.
Heydon says Shorten’s wishes should be respected in this instance, given this has been a specific request of his former staffer.
Stoljar is unhappy about the restriction and wants now to refer to this person as the mystery worker.
Shorten, a bit pointed in this retort:
I am sorry about that, it is just that the person asked me. Obviously there is no great secret and I don’t want anyone to think untoward.
Sometimes being mentioned in the commission can embarrass people, even when they are perfectly innocent.
Shorten asks if the woman can be referred to as the second campaign worker rather than the mystery worker. Stoljar consents.
Q: Who paid that person’s wages?
I think the union.
Q: What do you mean you think?
The union.
Q: When you say the union, what does that mean – national, state?
The Australian Workers’ Union national office.
Updated at 10.55am AEST
10.33am AEST01:33
Stoljar wants to know if Shorten told Lance Wilson his wages were being paid by Unibilt. Shorten says not initially.
Shorten:
I was on the lookout for good people. I would have said to Lance to the effect of, and I don’t recall my exact words, this was 10 years ago, but perhaps if it works out between us you can come and work for me on my campaign.
I need a campaign director.
The document we started with at the beginning of this evidence is an employment contract for Wilson.
Stoljar wants to know whether Shorten asked for this contract to be drawn up. Shorten says it is possible he asked the AWU’s financial officer to prepare a contract.
I could well have asked Michael Chen to prepare a contract.
How were the details determined? Shorten isn’t sure.
Q: Was someone else from the union giving Michael Chen instruction on how to draft this contract?
Shorten:
I don’t know.
Q: My question was ‘it’s likely you gave Michael Chen the instructions to prepare this contract.’ Do you agree with that?
Shorten:
Yes, I could well have asked him to prepare a contract but going to the specific terms of the contract I didn’t supervise every clause and every document, no.
Stoljar:
Q: It’s not every clause and every document, it’s the opening line and describing his position – research officer with Unibilt.
Shorten:
Yes, but I still don’t draft all the contract documents that you are referring to.
10.23am AEST01:23
Stoljar wants to know whether Shorten discussed the company’s donation of the services of his campaign director Lance Wilson at the time the agreement was being negotiated.
Q: Did you discuss that with Mr Lockyer when you were having discussions with this donation he was going to make?
Shorten:
Not at all. I don’t believe that to be the case at all. The Unibilt negotiations were done by the Victorian branch. I no longer have a line of sight to the Victorian branch.
10.20am AEST01:20
Counsel assisting Jeremy Stoljar takes Shorten now to an enterprise agreement between the AWU and Unibilt. Shorten examines the material and gives evidence that at the time of the ratification of the agreement I was no longer Victorian secretary of the union.
Shorten says Cesar Melhem would have concluded this agreement.
Stoljar says isn’t this a national agreement? Shorten says yes, but he believes it was executed in Victoria.
I didn’t do this negotiation in 2007.
Because, as I have said earlier, I was no longer the Victorian secretary.
Updated at 10.24am AEST
10.13am AEST01:13
A bunch of documents have been tabled. The first document concerns a company called Unibilt and Lance Wilson who was Shorten’s campaign director for his federal seat of Maribyrnong.
Has he seen this document before?
Bill Shorten:
Not that I recall, no.
Shorten says he knows what the “document was doing” but doesn’t have specific knowledge. Unibilt is a labour hire company. The evidence is the company paid Wilson to work for Shorten.
Q: He was going to be working full-time on your campaign, is that right?
Shorten:
Yes.
Shorten says Lance Wilson was in Young Labor. Unibilt was prepared to pay Wilson to work on Shorten’s campaign.
Shorten:
He was working on my campaign.
Q: So he wasn’t a research officer for Unibilt?
No, he was working on my campaign.
Updated at 10.36am AEST
10.02am AEST01:02
Bill Shorten opens his evidence
Former high court judge John Dyson Heydon is in his chair. Shorten has just been sworn in. Here we go.
Updated at 10.04am AEST
9.55am AEST00:55
This $80m witch hunt by the government will not in any way impact on Bill Shorten.
This is Shorten’s Victorian Labor colleague Brendan O’Connor, back in Canberra. O’Connor has been on #turc spoiler duties for several days. O’Connor attacking the commission as a blatantly political exercise allows Shorten to grimly pretend that he’s happy to be there.
It’s called walking both sides of the street.
Updated at 10.15am AEST
9.47am AEST00:47
Our colleagues over at Fairfax have framed their preview for today as ten questions Bill Shorten must answer in the witness box today. I’d frame that observation as “speaking of BuzzFeed” but that would imply I’m anti-listicle. Regular readers of mine know I love a listicle.
Sticking with Fairfax, Age political editor Michael Gordon is in ‘consequences for Shorten’ territory with his analysis.
Mr Shorten will become the third Labor leader to appear before a royal commission set up by Mr Abbott (a record for any incoming government), but he faces a very different challenge to the two former prime ministers who gave their testimonies last year. While Julia Gillard and Kevin Rudd were defending their respective legacies when they took the stand at separate inquiries, Mr Shorten’s appearance is all about his future. The timing could hardly be more critical, with Mr Shorten’s approval ratings at record lows as he prepares for what could be a bruising national conference of the Labor party and the run-up to the election due next year.
Updated at 10.14am AEST
9.39am AEST00:39
The media room is filling up in Sydney. Guardian Australia’s own First Dog is clearly astonished that the ABC’s 7.30 Report host, Leigh Sales, will have to take her place in history, down the back, behind BuzzFeed.
Australia is finished RT @BuzzFeedOzPol: We've arrived at #TURCShorten and sorry @leighsales if we block your view. pic.twitter.com/gXhq1W6OIF
The rise of new media in Australia is complete.
9.26am AEST00:26
Good morning
Hello everyone and welcome to Politics Live, a place where too much politics is never enough. We are coming together today, outside the normal parliamentary session, for Bill Shorten’s appearance before the royal commission into trade union governance and corruption – or #turc as the cool kids on social media call it.
Today is obviously a significant personal test for Shorten, as anyone who has ever been cross-examined in a court or quasi court process would understand. It’s a gruelling experience, and Shorten is prepared for the inquisition to stretch beyond today. We political journalists will make our various pronouncements about the implications for his leadership.
Thus far, the Labor leader is pretending he’s happy to be there. His office on Tuesday night circulated a short statement from Shorten ahead of today’s proceedings.
Bill Shorten:
I relish the opportunity to talk about what I believe to be every Australian’s right – a good, safe job with proper pay and conditions.
In fairness he possibly does relish that ... a little bit. To suggest he’s delighted to turn up would be stretching everyone’s credulity.
My colleague Daniel Hurst has a well established tendency to file the most comprehensive report on any issue going and this morning is no exception. If you just need the short version of what we can likely expect today before resuming life and tuning back into our coverage later on today, you can find Daniel’s preview here. A little while back, Daniel also published a longer primer about the issues that we’ll likely hear about over the course of today. It’s worth a read if you have a moment and you can find that here. Daniel is in the hearing in Sydney and will be filing news updates throughout today. I’ll link to these as they come to hand. If you want to follow him on twitter he’s at @danielhurstbne
If you are sticking with me, then let’s begin to set the scene.
We expect Shorten to be questioned by Jeremy Stoljar, counsel assisting the inquiry. The questions will cover the period when the Labor leader was secretary of the Australian Workers’ Union Victorian branch from 1998 to 2006. Shorten also served as the union’s national secretary from 2001 until he entered parliament in the Rudd-slide of 2007.
Let’s see what the day brings but we anticipate Shorten will be questioned about payments various companies made to the AWU in order to cover membership fees. It’s not unusual for companies to make direct payments to unions for various services – training, occupational health and safety services, membership dues. But the commission has expressed interest in two things: whether the payments were made with the knowledge of employees who were signed up to the AWU; and whether the payments had the effect of boosting AWU influence within the ALP.
In the lead-up to his appearance today there has also been some re-prosecution of Shorten’s various workplace deals – whether they delivered for workers or whether they delivered for the bosses. My own view is the payments are certainly worthy of close scrutiny, and I get the interest in practices that might have inflated AWU membership numbers, but the re-prosecution of the industrial agreements that were negotiated by Shorten is a bit strange, for this old industrial reporter at least. These agreements were reported at the time and were made under the relevant federal law, which included a no-disadvantage test. The point of dealing with the AWU from the point of view of employers was it presented as a more constructive union that its rival, the CFMEU.
This is a known known – but anyway, it would seem everything old is apparently new again, and perhaps there is some deep dark significance to this that will be revealed in the coming hours.
That’s chunky enough for an opening post. I’ll continue to lead us in gently until Shorten appears, which we expect at around 10am. Then we’ll be live for the duration of his evidence, computer gods and other gods I can’t currently nominate willing. Touch wood.
The comments thread is open for business and you can give me a shout on Twitter @murpharoo
Here comes B-day.
Updated at 10.13am AEST