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| Australian Workers’ Union ordered to audit membership after admitting inaccuracies Australian Workers’ Union ordered to audit membership after admitting inaccuracies | |
| (about 11 hours later) | |
| The Australian Workers’ Union has been told to audit its membership numbers after concerns over inaccurate reporting of membership for six years. | The Australian Workers’ Union has been told to audit its membership numbers after concerns over inaccurate reporting of membership for six years. |
| The Fair Work Commission last week ordered the audit after the union admitted it had published incorrect historic membership numbers in financial reports from June 2009 to 2014. | The Fair Work Commission last week ordered the audit after the union admitted it had published incorrect historic membership numbers in financial reports from June 2009 to 2014. |
| The FWC discovered the problem after reviewing the AWU’s annual returns and financial reports. | The FWC discovered the problem after reviewing the AWU’s annual returns and financial reports. |
| Chris Enright, the director of the Fair Work Commission’s regulatory compliance branch, has warned the AWU it may have contravened the Registered Organisations Act. | Chris Enright, the director of the Fair Work Commission’s regulatory compliance branch, has warned the AWU it may have contravened the Registered Organisations Act. |
| In correspondence seen by Guardian Australia, Enright told the AWU on 15 November that the “integrity” of AWU historical membership reporting had become an issue. | In correspondence seen by Guardian Australia, Enright told the AWU on 15 November that the “integrity” of AWU historical membership reporting had become an issue. |
| He said that, between 2009 and 2014, the AWU’s financial report for each year cites the exact number of members as the union’s annual report from six months earlier, something he said was “inherently unlikely”. | He said that, between 2009 and 2014, the AWU’s financial report for each year cites the exact number of members as the union’s annual report from six months earlier, something he said was “inherently unlikely”. |
| “For example, in the June 2014 financial report, the union reported 120,289 members, the identical number as had been reported in the annual report for 31 December 2013,” he wrote. “This pattern has occurred in each of the years between 2009 and 2014. | “For example, in the June 2014 financial report, the union reported 120,289 members, the identical number as had been reported in the annual report for 31 December 2013,” he wrote. “This pattern has occurred in each of the years between 2009 and 2014. |
| “The AWU has a financial year which ends on 30 June and it is of course inherently unlikely that the number of financial members of any registered organisation, including the AWU as at 30 June each year, would be exactly the same as the number of members as at 31 December the preceding year over a period of years. | “The AWU has a financial year which ends on 30 June and it is of course inherently unlikely that the number of financial members of any registered organisation, including the AWU as at 30 June each year, would be exactly the same as the number of members as at 31 December the preceding year over a period of years. |
| “While I do not propose to speculate about what might have been occurring at this stage, I advise that the integrity of AWU historical membership reporting has become an issue.” | “While I do not propose to speculate about what might have been occurring at this stage, I advise that the integrity of AWU historical membership reporting has become an issue.” |
| The AWU admitted the error in November, saying the financial reports for 2009 to 2013 were prepared by a financial controller who no longer works for the AWU. | The AWU admitted the error in November, saying the financial reports for 2009 to 2013 were prepared by a financial controller who no longer works for the AWU. |
| It said a new financial controller began working for the AWU in April 2014 and changes were made later made to the AWU’s reporting processes, leading to an abandonment of the practice in its 2015 financial report. | It said a new financial controller began working for the AWU in April 2014 and changes were made later made to the AWU’s reporting processes, leading to an abandonment of the practice in its 2015 financial report. |
| But Enright wrote to the AWU last week warning his concerns had not been resolved simply because the AWU had acknowledged the error. | But Enright wrote to the AWU last week warning his concerns had not been resolved simply because the AWU had acknowledged the error. |
| He said the commission did not have a “sufficient level of confidence” in the statutory membership reporting of the AWU, and he has asked them to prepare for an audit. | He said the commission did not have a “sufficient level of confidence” in the statutory membership reporting of the AWU, and he has asked them to prepare for an audit. |
| “I request that the AWU begins immediate preparations to conduct an internal audit of its membership, for both financial and calendar year periods, between 2009 and 2014 inclusive for correcting the errors,” Enright says, in a letter dated 20 December. | “I request that the AWU begins immediate preparations to conduct an internal audit of its membership, for both financial and calendar year periods, between 2009 and 2014 inclusive for correcting the errors,” Enright says, in a letter dated 20 December. |
| “There are a range of regulatory options open to the commission to ensure that the AWU meets its statutory obligations and the commission intends to consider those options.” | “There are a range of regulatory options open to the commission to ensure that the AWU meets its statutory obligations and the commission intends to consider those options.” |
| The correspondence shows the AWU claimed a membership of 129,981 in its 2009 annual report, which was replicated in its 2010 financial report. | The correspondence shows the AWU claimed a membership of 129,981 in its 2009 annual report, which was replicated in its 2010 financial report. |
| It then claimed an increased membership of 132,956 in its 2010 annual report (and its 2011 financial report) and 139,329 in its 2011 annual report (and 2012 financial report). | It then claimed an increased membership of 132,956 in its 2010 annual report (and its 2011 financial report) and 139,329 in its 2011 annual report (and 2012 financial report). |
| But its recorded membership then fell to 121,448 in its 2012 annual report (and 2013 financial report) and 120,289 in its 2013 annual report (and 2014 financial report). | But its recorded membership then fell to 121,448 in its 2012 annual report (and 2013 financial report) and 120,289 in its 2013 annual report (and 2014 financial report). |
| The recording practice changes after that. Its 2014 annual report shows a membership of 103,678, followed by 98,763 in its 2015 annual report and 92,798 in its 2015 financial report. | The recording practice changes after that. Its 2014 annual report shows a membership of 103,678, followed by 98,763 in its 2015 annual report and 92,798 in its 2015 financial report. |
| Scott Ryan, the special minister of state, said on Tuesday that the issue showed the importance of legislation recently passed through the Senate “to ensure those who claim to represent workers actually do, and in this case represent the number of people they claim to actually exist”. | Scott Ryan, the special minister of state, said on Tuesday that the issue showed the importance of legislation recently passed through the Senate “to ensure those who claim to represent workers actually do, and in this case represent the number of people they claim to actually exist”. |
| In November the Senate passed the Turnbull government’s registered organisations commission bill, one of the industrial relations bills that triggered the double-dissolution election. | In November the Senate passed the Turnbull government’s registered organisations commission bill, one of the industrial relations bills that triggered the double-dissolution election. |