Takedowns
ON THE BRINK: HSU East could be insolvent after years of looting
The Federal court-appointed Administrator of HSU East has written to its officials explaining that there are unpaid staff entitlements of as much as $2 million amid concerns about the ongoing financial stability of the union, until recently run by scandal-plagued Executive President Kathy Jackson and NSW officials.
The officials, removed by court order, were in some cases paid officials and as such accrued “entitlements” like annual leave, long service leave and so on.
A union branch that once had 70,000 members that collapsed unable to meet these obligations could constitute a serious embarrassment and reputational catastrophe for the labour movement, perhaps even greater than that perpetrated by Jackson herself and her foes, union insiders have told VEXNEWS.
Despite initially self-styling as a whistleblower, Jackson has faced credible and serious allegations of serious financial wrongdoing in recent times including in relation to the purchase of a white Mercedes convertible for her then husband, misuse of credit cards (spending $150K+ on union credit cards in the space of twelve months alone) and other financial misdeeds that have rocked her credibility even with once enthusiastic journalist cheerleaders who rightly judged her to be “good copy” because of her propensity for sensational claims against her foes.
Her ultimate “jump the shark” moment was addressing the HR Nicholls Society, cosying up to former Workplace Relations minister Peter Reith, who now favourably quotes her in oped pieces. Those who know the former Labor Pledge Left (its most militant left group) Noam Chomsky fan well think this quite a remarkable transformation.
Beyond that, the former HSU East president Jackson – still the union’s national secretary (for now) – has has publicly admitted driving a Volvo luxury SUV that cost the best part of $100,000, copping a $270,000 per annum salary which she variously described as “obscene” and “slightly excessive”, employing her current lover’s teenage brats on higher wages than union members get and told Chris Uhlman on the ABC’s 730 Report she received funds for union elections from union coffers “authorised by the committee of management” (which, if true, was in blatant violation of the Fair Work Act and union rules).
Most presumed the union had sufficient financial strength to withstand even the most enthusiastic union leadership pocket-lining, but union insiders fear that Jackson has managed to push it over a cliff with genuine fears about whether staff entitlements can be paid and whether the union’s branches in Victoria and New South Wales are insolvent.
Insiders believe that the now deposed Jackson-led regime ran up bank debt of around $26 million, supported by real estate assets valued in more robust times at $28 million, a wafer-thin margin that would be wiped out by a need to flog the properties quickly and by massive liabilities like the entitlements for former officials. At the core of the assets are strata-titled Sydney office floors that realtors explain are not always easy to sell, certainly not as easy as independent buildings. In a firesale scenario, millions could be lost, leaving the union open to further litigation from lenders.
The biggest creditor – the Commonwealth Bank – has already expressed fears about whether the union is a going concern, even sending a barrister along to the Federal Court to represent their interests in the appointment of an administrator.
There are also rumours of substantial debts owing to a number of unsecured creditors who have threatened legal proceedings if they are not paid promptly.
Legal sources say the Administrator – former federal court judge Michael Moore – is just coming to terms with the extent of the uncertain and precarious financial situation and has had protracted discussions with secured creditors. He is believed to have sought advice on his own personal financial liability in the event the union branch collapsed, unable to pay its debts when they were due and payable.
Given the scope of the Health Services Union’s current coverage in NSW, ACT and Victoria, in the long run if it had the opportunity to trade through, most union insiders believe the union could survive and even substantially grow (especially in Victoria where its Jackson-aligned organisers are notoriously lazy, known principally for frequenting South Melbourne coffee and hot chocolate providers while having little or no previous connection to the health sector like Kathy Jackson’s shopping buddy and ALP member Fleur Behrens).
But after yesterday’s entitlements bombshell, there are growing concerns the union won’t be able to financially survive the Jackson era of mega-salaries, credit card abuse and grotesque corruption that not even plastic surgery could hide.
In the event of a financial collapse that disadvantaged creditors, those responsible for malfeasance from the organisation could be held liable personally and required to make repayments, legal sources have told VEXNEWS.
UPDATE:
The Sunday Herald Sun has reported on the disgraceful situation, with their intrepid investigative reporter freshly returned from the Wall Street Journal and Offspring fan James Campbell revealing the HSU’s administrator has questioned the validity of the “entitlements” supposedly owing to Jackson & Co., even questioning whether the “obscene” pay-rises greedily snaffled by Jackson & Co. were legitimately approved by union decision-making bodies.
Tags: Discussion
Comments are disallowed for this post.
Categories
VEXNEWS QRCode Information
No entitlements should be paid out by the administrator until all investigations are complete and recovery of illegally used funds undertaken.
Who would employ those two?
On merger with HSUeast Jackson reportedly received a $63000 honorarium payment. She also received a $74000 bonus which was part of a combined $522,570 total of bonuses to certain Victorian officials. These amounts would have otherwise presumably become part of the funds of the merged entity. Why the honorarium? Why the bonuses? Who approved them? Members are entitled to know.
Makes it look clearer and clearer that Thomson was really not the bad guy.
Just as it now comes clear that Ashby and his supporters are in the doo doo.
Ah so Kathy’s will need major surgery to repair, now I could fit rickshaw in there side way .
Unemployable is the only word that comes to mind when I look at that picture
All young male members who missed out can get a bonerous from me.
No creditors are paid until the financial situation is fully investigated-that will be 12 months at least.
It’s pretty clear the ghastly Jackson was using Craig Thomson as a diversion but that excuse idiotic muckrakers like Kate McClymont for pushing such obviously fraudulent documents as he has. McClymont has damaged not only Thomson and herself but Fairfax’s reputation (or what was left of it).
And what a low liar Jackson was-on ABC’s 7.30 report she denied she drove a Volvo.
several mistakes cause by 2 red wines.
Brother Abbott will ‘look after’ any needy young boys as well.
Branch Committees of most unions are either hand picked lackeys with not too much going on between the ears. They depend on the Secretary for their jobs or they know where all the bodies are buried and they are given freedoms that no other worker enjoys. Then you have the absolute crooks, the losers who would (or should) be in jail if they were not in a union job (sounds like a lot of NSW unions) and then you have the evil bastards, the ones who got their jobs through fraud and keep their jobs through fraud. Most workers who stay in unions would not know what their rights were or how to go about enforcing them, for instance most workers would not know that if 250 members sign a request for an investigation into their union Fair Work must investigate. One of the obvious things that union members might one to investigate is over affiliation to the ALP. You only have to look at many unions annual returns to see that their are some very strange looking numbers that tend to indicate lots of members money being funneled to the ALP that does not belong there. I can see a day in the not too distant future that workers start to use the law to their advantage and this could only be good. It would be great to see some of these ‘champions of the working poor’ have their minds focused on the people who really matter.
Those behind these coup attempts were to clever by half, She should be made to sell her properties before the long suffering membership lose their union. I urge people to watch a movie called”A VERY BRITISH COUP” life imitating art in a very accurate way.I cant wait to see what deeper investigations turn up on the LNP’s involvement in these coup attempts were.
It took the Jacksons 2 years to destroy a 100 year old union thru their greed. I hope they have to repay their theft and sell their million dollar properties, and hopefully end up where they belong….JAIL
The HSU sounds like the sought of place I’d like to be employed at. [Employed and doing work is an entirely different matter].
Pity i didn’t take up Jeff Jackson when he said I had all the right assests for the job.
You are so right HSU member, but how did this happen under the leadership of the all controlling president Pauline Fegan? Where was the greatest union president in the last 100 years?
Ah well, Tone won’t be a-quotin’ “this courageous woman” any more.
The Gumption of Jackson demanding her entitlements! I can only imagine she will need them through the upcoming police investigations…and she will need plenty of botox to rid herself of those deep growing anxiety lines on her face…..
So sorry Kathy not even me with all of my Vaginoplasty skills, could repair the acute slackness damage you have down there ah so.
Professor,
That is probably the only hole in the leaking HSU that has had numerous attempts at being plugged, and I doubt that there was much concern for the financial haemorrhaging at the HSU while those attempts were being made!
But while her partners were getting their rocks off, it was the union that got well and truly screwed.
Is she Wenchy’s sister as it sounds like they have similar snatch characteristics?
The demise of the ALP is piss funny. Just like Marilyn.
Shagger, or is it wanker? The aim of all the right wing hacks is the demise of the ALP, unfortunately in your ideological blindness, if you do get your way it will be the demise of our country that we will all witness under the lying arse wipe Abbott.
Good work!
similar traits to the victorian ETU. theft of members money and years to rebuild the union.if where lucky time to go dean.
Professor make muff like new, the seems have frayed and I will need more work. I know you can work miracles.
Ah Wenchy those seems were carbon fibre I will always try but as an OHS measure I recommend any of your suitors purchase a forty foot plank prior to coitus.
Give way to the right hsu
Fleur Behrens election ticket being chanelled by Jackson is now facing a possible breach of the administrators rules .Attendance of a Peter Mac election meeting last week was in effect an endorsement of the Fleur Behrens ticket and blatant electioneering breach.
Kathy tipped to be relocating to NSW where she will no doubt seek endorsement by the LNP and hoping she will join the Mosman set with her Balwyn credentials.
Pretty clear from what we know about Williamson and Thompson, that they probably have a lot still hidden away.
Given Jackson may have questions to answer, and the corruption exposed with Thompson and even more so with Williamson, the whole union movement should be investigated, not just HSU. Royal commission into all unions is justified… starting with HSU, then CFMEU and on and on… everyone suspects there’s rampant corruption, and that’s pretty likely given what we’ve seen now that the curtains have [partly] been drawn back on this rabble.
Christ jimmy’s back just when I thought it was safe to come back to Vex, there he is ranting and carrying on his hate campaign again. You’re not from the NSW Right are you jimmy? they tend to be foaming at the mouth lunatic ranters as well. Still waiting for your update jimmy. Another ALP Right trait, just keep up the bullshit and in the end hopefully everyone will actually forget what it was all about, they start to lose track of all the lies.
God love you Vex for focusing on Victoria. Never mind that Williamson & Peter Mylan have been on inflated salaries for years. 25 years worth of entitlements for them plus also what about Gerard Hayes, Kerrie Seymour & Bob Hull. They’d also be up for a pretty penny or two. Little wonder the administrator is worried.
Why aren’t you casting your spotlight on the Williamson rorts? After all, the interim Temby report had a load of stuff. How about the $17million of HSU funds over 5 years going to companies controlled by slick Willy without any proper tender process? Where did that money go? Surely it can’t have all gone to him & his family. He was once a powerful figure in the NSW ALP. It doesn’t take Einstein to join the dots.
Speaking of Temby, a NSW organiser told me that the final report might not be available publicly because some shadey characters named in it might sue. Now that’s a worry. HSU members deserve at the very least the truth. We also want our money back. Don’t just take your blow torch to Jackson. She’s an amateur rort artist compared to slick Willy.
I was at a meeting the other day where Kathy Jackson openly endorsed Fluer Behrens as the chosen one to take back control of the new number one branch once the de-merger occurs. I couldn’t believe my ears at the openness in which Jackson spoke so highly of Behrens. Speaking to other local members I know, Behrens is a clone of Kathy Jackson in more ways then one and know doubt if the Behrens ticket was to succeed, one of the first decisions this ticket would make would be to re- hire back Kathy Jackson as a consultant one a huge salary. The member should then be back to where all this mess started. Greedy officials more interested in funding and filling their own pockets then actually representing the members.
I hope the Administrator does his role and acts appropriately and deals with Behrens who, like all other current HSUeast employees are forbidden by a court order from being involved or running any electioneering during working hours.
What a disgrace
Interesting news about Behrens. That explains why she was seen the other day with Marco Bolano enjoying a nice coffee. Know doubt Marco ” the dumbarse ” Bolano will also be involved in Fluers ticket. It truly does seem out with the old and straight back in ??? God help this union and it’s members.
I love watching the left implode. Royal commission into the unions and new laws banning bulk payments to political parties by employee groups. It’s coming princesses. That and a bit of work choices, the end of the carbon tax and some real leaders. Hahahahahahahahahaha
Bulk payments to political parties by employee groups?
Is this with or without their consent?
What will it take to get Jackson out of the HSU? An exorcist?
Bye bye Bolano, no more than you deserve….
Wenchy, I can not do any more repairs to vaginaplasty.
Yes, I know your vagina is primary source of income, but even I Professor Muku Muff Laik Ngu, can not make a silk purse out of a sow’s ear.
Thanks for your reply DEAN.i am not from NSW right, lets get that clear and foaming at the the mouth like a lunatic thats definitely you.as you prepare for court on july 31st you are the one that continues too bullshit your way through court,spending millions of members money,knowing full well that the books will show that you are corrupt union offical.see you in federal court.
Bolano will reign supreme
Shagger is a really appropriate name for you as you are a complete knob.
Marco Bolano will reign supreme……you have got to be kidding. This Neanderthal who doesn’t even possess a strong use of the English language and who is incapable of making a decision himself without first checking with his puppet mistress and queen thief Kathy Jackson, will now get what he deserves. Everyone, as in all Victorian members are aware that behind the Fleur Behrens ticket are the old fat cats in Jackson and Bolano. And if the unthinkable should happen and a Behrens ticket was successfull everyone knows within weeks Jackson and Bolano would be back inside the union extorting more of the members money. These new elections will be the chance most members want, the chance to finally rid the HSU of the Jacksons name and along with it, anyone whi remotely connected with that name. Bye Bye Bolano and Behrens. Your blind faith and acceptance of corrupt behaviour will see you gone once and for all.
A complete knob I may be but this is fun
Bolano and Kathy will rise like the sun on a beautiful summers day!
Obviously from the tone of the previous comment Eric Abetz and the Liberal Party have found this site!!
Anonymous,
Go speak to the vic members…you’re dreaming!
It’s not Eric Abetz who made those comments it’s Bolano himself. Bolano is delusional himself if he thinks he will get support from a majority of Vic Members. As a previous commenter stated, anyone connected to Karhy Jackson or Marco Bolano will be killed in the rush. Take note Fluer !!! Wake up and smell the roses !!!
The jury is in then.
It seems we can safely conclude that all union officials are thieving grubs.
Sav he is much better tonight, Little Paulie has had a really good feed from Majka’s plump supple breasts tonight.
What all ALP Feds are failing to acknowledge is you stink!
we are all aware that only the general williamson or his fill in mylan could sign off on any hsu east spending money of more than $250. Williamson spent way more that than that on his lunches. Cathy and marco couldn’t even get money to get a coffee out of the great willy.
willy’s car is a new merc, cathy’s was a 6yr old volvo. Too bad,- the cars should by now be all at the auctions if you want to pick up a bargain.
@think
Unless Kathy and Marco’s coffees cost in excess of $250 in South Melbourne, your comment is nothing but exaggerated dramatics.
Sounds an awful lot like a loose and flimsy whinge that Kathy would make on 7:30 report or to Kate McBias from the smh
Jackson’s heading back to court on appeal to argue that she should not have been sacked. Presumably a selfless move in the interests of the members? No doubt they will approve of their union dues, scraped up from meagre salaries (a hairdresser’s appointment for KJ), being used to defend this latest exercise in self serving hubris. Makes me want to vomit.
Kaffy’s volvo is not even 2 years old…get your facts right ‘think’
What ticket asside from Goven are running
some nervous and worried faces in nsw today.. oh goody, the rudd leaks story should add to the spinning sensation for the union bods who are caught in the centrifuge of their own downward spiral. ‘ seems the trouble with adopting superiority complexes and treating others like they are dumb, is that you forget how stupid you really are.
Fluer and girlfriend
Time to move forward forgive each other labour etc kr sc