Federal Circuit Court refuses to hear ‘union slush fund’ dispute

Union reserve funds are not illegal, but that has not stopped them from becoming controversial in the context of recently uncovered instances of serious misuse these funds. Sheehan v Australian Municipal Administrative, Clerical and Services Union & Ors [2013] FCCA 2137 is a Federal Circuit Court decision that sheds light on union members’ standing to bring actions for alleged misconduct by officials. It is cases such as this one which have attracted media attention and seen most union reserve funds pejoratively labelled ‘slush funds’.

Trade union membership standards for Not for Profit regulation

Recommendations adopted by the Australian Senate Economics Committee’s inquiry into the regulation of the Not for Profit (NFP) sector and developed by the Productivity Commission in its 2010 report on the NFP sector invite questions as to how governance arrangements applying to NFP entities might materialise under any forthcoming regulatory scheme. A recent Parliamentary Library research paper examines the governance aspect of the proposed NFP regulation, putting the case for entities, which comprise the NFP sector, to adopt constitutions, objects and rules for administration upon registration. Entities registered under the proposed scheme would meet standards for their governance.