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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
(2 days later)
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.)
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Bill 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.
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:
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:
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.
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Stoljar sees a coincidence in the timing of the disclosure. Shorten doesn’t see a coincidence.
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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:
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.
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?
Shorten:
Not at all.
5.14am BST
05:14
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.
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.
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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.
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.
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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.
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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.
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.
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.
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.
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.
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.
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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.
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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.
Bill Shorten:
You are judging me in hindsight.
Stoljar says he’s not judging anyone. I’m merely asking, Mr Shorten.
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