‘The job cuts are a mirage’: HSU accuses Diana Asmar of revenge redundancies
The Health Services Union has asked for its Victorian state secretary, Diana Asmar, to be restrained from performing the tasks of branch head amid concerns she has been meting out punishment to “traitors”.
On Monday, the union asked the Federal Court for new orders that would effectively sideline Asmar from her role, claiming the original directions by the court stopping her from sacking staff in a campaign of retribution were not robust enough.
Health Workers Union boss Diana Asmar.Credit: Justin McManus
The HSU has been seeking Asmar’s suspension since September, when the Fair Work Commission launched civil proceedings against her, her husband, David Asmar, and five senior members of the executive team of the union’s Victorian branch – known as the Health Workers Union. The HSU is also seeking to have the HWU put into administration.
The original orders were put in place in early October to preserve the operation of the HWU before a trial this year about whether it needs to be placed into administration.
Under the existing court orders, Asmar is restricted from sacking any staff as part of retaliation to an investigation into her conduct. However, the orders did not stop staff from being made redundant for cost-cutting measures.
If granted, the new orders would allow for decisions about the state branch’s operation to be referred to the union’s national office.
HSU counsel Malcolm Harding, SC, told the court that seven staff at the union – including two senior organisers, Jake McGuinness and Ray Collins – were stood down in November. Five call centre staff were also made redundant as part of a cost-cutting review.
Harding told the court that the five call centre staff were known to McGuinness and one lived at the former organiser’s home.
He also told the court that Collins was stood down after five reports about his conduct were made against him by union staff.
Harding said he accepted there were limitations in the original orders, given the directive did not stop people from being sacked as part of a cost-cutting drive.
“What has motivated this application is essentially a worsening of the position of the branch since October 7, which has motivated my client to move the court for further orders that we say are necessary to hold the branch in aspic until such a time as the court can determine final orders,” he said.
Harding said there was evidence that showed the redundancies and standing down of staff while not being immediately directed by Asmar were done at her behest as part of retaliation against members, particularly after she had issued a warning at a delegates conference on October 23.
“We do say on the evidence [the job cuts] are a mirage,” Harding said, pointing to the fact the union had immediately hired two organisers at a cost that was similar to the amount paid to the five call centre workers.
Justice Craig Dowling did question whether this was the only reason the staff were stood down.
“There is some evidence that it wasn’t particularly efficient to have the five, and they were underemployed,” Dowling said.
Harding accepted that could be the case. He also agreed the orders might limit the HWU from making further job cuts for financial reasons, as claimed by the Victorian branch.
“Well that might be the price of preservation,” Harding said.
Rishi Nathwani, SC, acting for Diana Asmar, told the court the decision to reduce the call centre staff number was made at the recommendation of another senior staff member in September.
He said Asmar was open to providing an undertaking to the court regarding her activities at the union.
Asmar has been accused by the Fair Work Commission of stitching up a multimillion-dollar “ghost printing” arrangement, alongside her husband.
The commission’s investigation into the Asmars – revealed in The Age – alleges a printing business received $2.7 million in HWU member funds for no service, with the money instead going into private accounts, and that more than $120,000 in reimbursements was claimed without evidence of relevant business expenses.
Justice Dowling is yet to make a decision.
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