Opposition Leader, Bill Shorten, says he has been the subject of an "unfair smear" over his pre-politics trade union career, but a senior Government Minister says it has become an “open sore” which must be addressed.
The Prime Minister Tony Abbott says Mr Shorten has questions to answer over alleged sweetheart deals with employers during his time as Victorian branch secretary of the Australian Workers Union.
"Obviously these are matters that Bill Shorten is very, very familiar with," he told Alan Jones on Radio 2GB on Thursday.
Mr Abbott also described the allegations out of the Royal Commission into union corruption as "pretty scandalous", while Education Minister Christopher Pyne has described them as "very unfortunate and murky."
"Now this is becoming an open sore for Bill Shorten. He needs to address it," Mr Pyne told reporters in Adelaide.
Melbourne builder, Winslow Constructors, paid the AWU hundreds of thousands of dollars over a decade for its employees' union dues.
"(Mr Shorten) absolutely refuses to explain what he knew about why Winslow Constructions gave the AWU $225,000 when he was the State Secretary, what they got in return for that."
"If it was the workers of Winslow Constructions getting lower rates of pay and less advantageous conditions .. the AWU union leadership was not putting the interests of workers first."
Christopher Pyne says "no-one is suggesting that Mr Shorten has done anything wrong", but "most businesses don't give the union movement several hundred thousand dollars unless there is a benefit to the business."
Receipts and emails provided to the Royal Commission show that in 2005, Mr Shorten's AWU branch invoiced Winslow Constructors, for $38,228.68 to pay for 105 union memberships.
Bill Shorten was branch secretary at the time, but says any implication that he "oversaw" sweetheart deals at the AWU is an "unfair smear."
"Any implication that I am not completely motivated and committed to getting a better deal for workers, for productive relations at companies and for standing up for people is completely unfair and false," the Labor Leader told reporters in Sydney.
Victorian Labor MP, and Bill Shorten's AWU successor, Cesar Melhem lost his job as upper house whip this week due to his dealings with Winslow Constructors.
The Opposition Leader refused to answer if he should also lose his job, telling reporters, "I have no time for any corruption or illegality in the workplace, be it employer or trade union related. Absolutely zero tolerance."
Bill Shorten says there is nothing of concern in his dealings with Winslow Constructors, "The agreement is registered in the (Fair Work) Commission and it delivered pay rises for workers."
He says workers did not lose out, "I can guarantee about any of the matters that we always improved workers' conditions full stop."
Labor frontbencher, Brendan O'Connor, says the trade union Royal Commission is politically motivated.
"The Government of course is seeking to use taxpayers' money and a commission to attack its political opponents," Mr O'Connor told reporters in Melbourne,
"What we have instead is a show trial, an effort, a political witch hunt by the Prime Minister to attack what it sees as its political opponents and it's doing it by using tens of millions of dollars of taxpayers' dollars."
Mr Shorten says he won't will be providing a running commentary on evidence presented to the Royal Commission, but says he is more than happy to co-operate, if asked.
The Education Minister, Christopher Pyne, says the Opposition Leader must address the allegations.
"He needs to apply the balm of sunlight to exactly what he knew and when about the arrangements with Winslow Constructions and until he does, he will continue to be dogged by this particular issue."
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