A union for low-paid workers gave free support and donations to a company that raised money for internal union elections, an inquiry has heard.
Former National Union of Workers (NUW) general secretary Charles Donnelly told the Royal Commission into Trade Union Governance and Corruption there was no conflict of interest in his also running IR21, a company that raises money for union elections and the Labor party via luncheons featuring headline speakers such as Kevin Rudd and Julia Gillard.
Evidence presented on Thursday showed NUW staff - paid with union members' funds and on union time - had organised IR21 events for the past 10 years.
The NUW, which represents low-paid workers in industries such as warehousing, food packing and manufacturing, also spent substantial amounts sending its officials to the events where tables for 10 could cost $3800.
Counsel assisting the commission Jeremy Stoljar SC asked Mr Donnelly why the NUW paid for seats worth $8000 to an IR21 function in 2005.
"The practical effect is union money is simply being paid to IR21, that's right isn't it?" Mr Stoljar asked.
Mr Donnelly said he could not recall why the decision was made.
The commission is investigating the relationship between the NUW and IR21, which generates more than $300,000 a year from luncheons and seminars.
Profits are spent supporting internal NUW election campaigns and on political donations.
Commissioner Dyson Heydon asked if the donations to IR21 were "a sort of evasion, perhaps, of the rule that union funds cannot be used to support a slate of union elections".
Mr Donnelly said that would be "completely unintended".
"The National Union of Workers had no practice of just funnelling money into IR21," he said.
Mr Donnelly said he did not accept there was a conflict between him running the NUW and IR21.
He said the NUW had recently considered whether it should start invoicing IR21 for the services it provided.
"I accept that things could have been done differently," he said.
The commission is due to conclude on September 30 following further hearings in Sydney and Melbourne.
Share
