General Manager of the Fair Work Commission v Thomson (No 4)
Citation: [2015] FCA 1433
At a glance
- Penalty
- $24,100
What happened
Craig Thomson, National Secretary of the Health Services Union, engaged in multiple contraventions of his duties as a union officer between 2003 and 2007. He caused the union to pay for personal services and expenses including travel costs for himself and his wife, home care services, personal security services, and staff services for political campaign work. He failed to record the true nature of these payments and to maintain proper accounts.
What was decided
Justice Jessup imposed substantial penalties on Thomson for contraventions of ss 285, 286 and 287 of the Fair Work (Registered Organisations) Act. Multiple separate penalties were imposed for each contravention, including breaches of the duty to exercise powers with due care and diligence, the duty to act in good faith, and the duty not to improperly use position for personal advantage. The Court also ordered compensation of $231,243.42 and pre-judgment interest of $146,937.16 to be paid to the Health Services Union.
What it means for employers
Union officers owe fiduciary duties to their unions. Improper use of union resources for personal purposes, political campaigns, or other unauthorised activities is a serious breach.
What it means for employees
Union members have the right to hold officers accountable for breaches of fiduciary duty. Officers who misappropriate union funds or cause unauthorised expenditure may face civil penalties.
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https://www.judgments.fedcourt.gov.au/judgments/Judgments/fca/single/2015/2015fca1433Want more cases like this?
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This summary was drafted from the published decision and reviewed before publishing. It is general information, not legal advice. For your specific situation, speak to the Fair Work Ombudsman (13 13 94) or a qualified lawyer. About these summaries & corrections →