Media reports on union corruption pressures Australia PM Abbott to order probe

In Canberra today, Australian Prime Minister Tony Abbott announced that the government will be conducting a probe into the corruption allegedly happening at workers' unions. Abbott's announcement followed media reports of stand-over tactics and kickbacks in laborer organizations, Bloomberg said.

Abbott said, "This royal commission is designed to shine a great big spotlight in the dark corners of our community. Honest workers and honest unionists should not be ripped off by corrupt officials and honest businesses should be able to go about their work without fear of intimidation, corruption, stand-over tactics."

On the other hand, Opposition Labor Party leader Bill Shorten said Abbott's call was unnecessary as majority of the unions operate lawfully on behalf of its members. Shorten, who previously held a union leader post, said in Melbourne on February 9 that police should be tackling any criminality happening in unions and not politicians. Bloomberg noted that Abbott's party, the Liberal-National coalition had not put their plans to reform workplace laws in Australia forward as it could alienate previous voters from the low and middle-income workers ahead of the September 7 elections.

Australian Council of Trade Unions president Ged Kearney said a royal commission is costly as it would be using A$100 million or $89.4 million in unnecessary taxpayer money. In an opinion piece on the Sydney Morning Herald on January 30, he said, "The Australian business community is clear about what it wants: cuts to wages, cuts to penalty rates, less job security in the name of ‘flexibility' and cutting red tape."

On the other hand, Minister for Employment Eric Abetz said Shorten's and his party have something to hide. Referring to the Construction, Forestry, Mining and Energy Union in a statement on January 30, he said, "Reports that senior CFMEU officials allegedly received free building materials and have links to criminal networks are of grave concern. Bill Shorten and the Australian Labor Party must stop their protection racket of dodgy union bosses and distance the party from the CFMEU by refusing their funding and involvement at party forums."

Tags

Australian Prime Minister Tony Abbott, Opposition Labor Party leader Bill Shorten, Australian Council of Trade Unions

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