Opposition Leader Tony Abbott has vowed to crack down on union bosses who break the law, telling Victoria's Liberal state council corrupt officials would face up tofive years jail under a federal Coalition government.
Capitalising on fraud allegations facing the Health Services Union (HSU) Victorian branch, Mr Abbott said the government would move to protect workers' interests by overhauling the rules that apply to unions.
He said union officials would be treated like company directors and could face criminal penalties including jail time and fines of up to $200,000.
"Our commitment today is to ensure that essentially the same governance rules that apply to businesses, and that you adhere to in your business life, will apply to unions and union officials," Mr Abbott told the crowd of Liberal MPs and party members on Saturday.
"We know offences have been committed in the Health Services Union ... we have got one (Fair Work Australia) report and that report clearly revealed that offences had been committed.
"Those offences, as things stand, attract fines of just $2,200 from union officials under existing legislation.
"If the same offences had been committed by company directors they would be liable to fines of $200,000 and potentially exposed to five years in jail."
Under the Fair Work (Registered Organisations) Act 2009, union officers are exposed to civil penalties with the potential for fines up to $2,200.
Mr Abbott's proposal would see these penalties move into line with those that apply to companies and their directors, as set out in the Corporations Act 2001.
Mr Abbott also promised the 600-strong crowd at Melbourne's Convention Centre "a new cop" would be set up to enforce the rules.
He said the Registered Organisations Commission would take over from Fair Work Australia (FWA) as enforcer and investigator of registered organisations, with the new body obliged to cooperate with other law enforcement bodies.
"And I tell you what, under the Registered Organisations Commission it won't take more than three years to investigate an open and shut case of wrongdoing," Mr Abbott said in reference to the FWA investigation into the HSU.
