New Zealand Council of Trade Unions

Annette King is currently calling in all her mates.

The ASMS (The Association of Salaried Medical Specialists) is in industrial negotiations; its Spokesman is Executive Director Ian Powell.

In recent times, any skim of the ASMS website reveals it has now become unashamedly pro Labour/Green, and critical of Government. It uses much of Labours favourite language; like King’s claims of “bullying”, and “brain fade”.

Labour’s link became more public last September when the ASMS reported two new appointments to their small National Office.

Mr Steve Hurring, former Labour Minister Benson-Pope’s Political Advisor, and ex-vice President of the Labour Party, husband of Helen Kelly.  Read more »

Have the Unions and Labour Party broken the Party Donation laws?  –Observation by the Owl

Current Labour Campaigns (from NZ Labour website)

1. Stop the great NZ Sell OFF
2. Labour champions Living Wage (Press Release 14/2/2013)
3. Manufacturing Enquiry

Current CTU and Union campaigns (from NZCTU website)

1. Keep our Assets
2. Living Wage
3. Manufacturing Crisis

Here is the rule regarding Party Donations (From Electoral Commission website)  Read more »

A post by the Owl

Background – for all readers of the Owl know that I am 100% behind members of Unions and my bone of contention always started when Gary Parsloe and Helen Kelly asked me as a taxpayer and ratepayer to support them against the POAL.

I have written that “okay if you want my support I would find out a bit about you” I very innocently looked up MUNZ’s and NZCTU’s information on the incorporated societies website only to find it was either missing, incorrect and members where getting short-changed.

NZCTU has 30 plus affiliated unions and a number of them have just not complied with the law of the land. Once again I question the governance at the top of the NZCTU.

Now after a year the EPMU have ,under instructions from the Registrar, finally filed their full accounts from 2005 and as expected their previous “cut and paste” and “excel accounts” never showed the true story to the public.

Remember this was the same time that Andrew Little was their National Secretary, he remained the head of the union until 2011 as well as maintaining his role as Labour party president from 2009.

Observation from the Owl

One of the big debate from their “cut and paste” set of accounts was a loss on the balance sheet of $6M. We can now reveal why. Please remember a number of CA’s have also blogged on WOBH about their inability to make sense of the original accounts filed.

The NZEBA Limited issued shares of $6.6M to the EPMU then the EPMU wrote off the value of the shares.

Questions the Owl would be asking if I was a member.

1. Had the NZEBA Limited accrued $6M of losses and then shares issued to cover the debt?
2. Why issue 6M shares only to write off the value?
3. How can a simple business of being a “bargaining agent” end up costing $6M?
4. Why wasn’t the full set of accounts filed correctly with the Registrar from day one especially when the EMPU had full audited accounts in their offices?
5. Who was running NZEBA Limited?
6. What was the outcome of the 2005 tax audit?
7. Why was $1.0M of software investment written off?

As always – all information is freely available in the public domain (in this case a few years late).

The Owl’s assistant also asks:

Why does a Union Subsidise side businesses whose results are hidden from members other than via the consolidated figures.

If I was a member I would want to know about each subsidiary especially ones where $6,000,000 goes. But in the EPMU caser there are four entities in the consolidated result with no separate accounting for each one.

The mixing of entity types does not work well.

In this case we have an incorporated society owning two companies and charitable trust and Journalists Prize fund (normal trust I think).

The point is that it a structure where money could be sucked out of an entity to associated parties without any accountability. This was the prime accounting failure in finance company collapses and how can anyone know it is happening here.

Festive season wishes from the Owl

Firstly I would like to thank all the people who have read and commented on my observations on Whale Oil. A big thank you to Cameron Slater who to this day doesn’t really know who I am yet allowed me to publish freely on his blog.

I have never done any of this for any financial gain, reward or recognition. While the majority of my observations were for the benefit of union members I was pleased that four times during the year my Observations were recognised.

1. Chris Trotter wrote that I was mis-guided in my direction and understanding of union finances. I think I won that discussion point.
2. Andrew Little showed his true colours when he wrote “the only parasites are employers” and was challenged in parliament – that comment will hurt his political career with the 1 million self employed business people in New Zealand
3. But finally in 2012 we saw Unions start to file their accounts and some had to spend thousands filing correct returns.
4. We uncovered finally that Unions were failing to disclose millions in funds and expenditure

Secondly – I believe my policy of always apologizing if wrong and only using information freely available in the public domain meant I could sleep each night knowing that I hadn’t gone into the “dark world” of reporting. All I have ever done is read what people put out and observed.

Finally I have only one goal for 2013 – NZCTU is held accountable for the complete lack of governance and to be finally shown to be nothing but a cult wasting millions of member’s funds. I hope ACC pulls all their funding because under the Health & Saftey programs – NZCTU have just failed completely to deliver on the program that they were contracted to do.

The Owl retires

Helen Kelly’s Together Union struggles – Observation by the Owl

The much vaunted launch of the Together Union which was going bring all the small operators into the great would of fighting for a better place at a bargain price $1.00 a week. The NZCTU funded the new Union with $90,000.00 of NZCTU reserves i.e. affiliated members funds

Now that is virtually giving it away.

The 2012 accounts have been filed and show a $28,947.00 LOSS

Ok for a start up business or is it?

Owls Observation

I congratulate the NZCTU for identifying that unions can be run $1.00 per week and encourage people to join.

After nearly 18 months of investment and advertising the total members who have joined are 47.  (Total annual fees and paid $2,459.00/ $52.00).

To increase members they need to target existing union members as the general working community has not seen the value in the service. I am disappointed because at $1.00 per week and what services they offer as it is quite frankly a great investment.

I do note that the some cherry person or entity invoiced them for $16,763 in “External Labour Charges”

There is no way that the Together Union will survive financially and the NZCTU should try and recover as much of the $90,000.00 as possible. The total cash on hand at the moment is approximately $50,000.00 from the original $90,000.00

I feel the Owl has done his best to promote the Together Union on here and the Truth.

Is there a Governance Crisis at the NZCTU? – An Observation by The Owl

Over the last few months 2 of the 6 (technically) affiliated unions (NZ Meat Workers Union and Maritime Union of NZ) who get to vote on David Shearer’s future have been put under the spotlight by the Registrar of the Incorporated Societies. It has been proven they have both failed to file complete returns with the Registrar.

The NBR also questioned a 3^rd union, the EPMU, on their balance sheet regarding a Pike River Trust. The EPMU have been reporting losses and the EPMU Education and Training Trust fund for members remains solvent only because the EPMU does not demand the $6M loan back as qualified by their auditors. (The Trust assets are approximately $3M.)

A number of so called affiliate unions to the NZCTU have been reporting losses, failing to declare income for GST purposes and generally been late with their financial returns. But to be fair some unions are good at compliance.

The ultimate responsibility of the NZCTU is to their members. Are there governance policies in place at the NZCTU head office to manage its individual unions when they fall out of line?

The Owl asks, is there a governance crisis? Here is a great example of good governance by a governing body.

When the Otago Rugby Union got into trouble – the NZ Rugby Union went down there, told them to sort themselves out and if they didn’t the NZRFU would liquidate them. The Board was changed and a number of people stood down. This is good governance from the top and Otago flourished on the field in 2012. The word on the street is it is a pretty happy camp now – a good dose of “tough love”

Owl’s Observation

The Owl believes the Labour Party Executive should demand that the NZCTU develop a good governance model to manage their affiliates if they want to get 20% of the voting rights.

The Labour Party Executive can exercise their governance control and meet with the NZCTU just like the NZ Rugby Union did with the Otago Rugby Union.

Current day unions only represent between 6-9% of the workers in private industry. Does this means the Labour Party is being distracted by pleasing a few when actually they are missing out on potentially serving the 94% of working voters?

The Owl is looking forward to analysing the results of the Labour Party Conference

There certainly could be a crisis at the Nurses Union. A constitutional crisis.

The New Zealand Nurses Organisation constitution reads:

“6.1.10 Affiliate with other organisations in the attainment of these objectives except that NZNO shall not affiliate to any political party; and”

Owl’s Logic Steps.

1. Labour Leader is selected via their 20% block vote of Unions
2. NZCTU is part of the process of selection for the Labour Leader
3. Nurses Union by way of affiliation are part of the NZCTU
4. Members who join the Nurses Union are therefore part of the NZCTU.

Owls Observation:

How can you justify rule 6.1.10 and yet be able to vote for the next Labour Leader?

Can the NZCTU receive affiliation fees from the Nurses Union? (Based on the above logic steps and the ruling 6.1.10 of the NZNO constitution you could easily argue No.)

The Nurses who complained to Family First are right and should be applauded. I hope the executive takes their complaint seriously.

Members of the Nurses Union are complaining that they are being unfairly represented. The Owl thinks they are right…and also reports that members should be looking closely at the large losses their union is recording.

Nurses Union members are absolutely right – Observation by the Owl

Union members of the NZ Nurses Organisation have complained to Family First about their executive promoting political agendas and not fairly representing them. This story was reported in the NZ Herald on Sunday.

These Nurses who are members of the Union are absolutely right and should be applauded.

The 2011 Financial Accounts show that the NZNO received $16,437,311.00 in subscriptions and other income. Expenditure for 2011 is as follows by the Union:

Reported Loss ($674,687.00)

Observation by the Owl

These Union members are correct and should be applauded. New Zealanders “love” nurses and they do a terrific job. Health Services is a complex industry and the NZNO offers a variety of services to its members though the Ministry of Health also provides an equal amount of investment in education, training, Health and Safety. Why does the NZNO Union have to run marriage equality campaigns, No selling of assets and a number of other political campaigns? Is it because they are affiliated to the NZCTU?

Section 6.1.10 of the NZNO Constitution reads under its objectives:

“6.1.10 Affiliate with other organisations in the attainment of these objectives except that NZNO shall not affiliate to any political party; and”

The NZNO is affiliated to the NZ Council of Trade Unions which is clearly affiliated with the Labour Party. The NZNO website has a number of NZCTU approved videos and campaign slogans.

Based on this these Union members are right and should be heard and their complaint taken seriously.

However it got me thinking about how the Owl would spend $16M for the Nurses.

Holiday homes, insurance subsidies and scholarships and grants – now that is a union I would invest/pay my union dues too.

The union sector is in trouble, case after case has been highlighted on this blog of wayward and illegal activity by unions, failing even the most basic of governance reporting.

The Owl has found another one, and this time they are in trouble with the IRD.

TUIA Union is the inhouse union of staff at Te Wananga o Aotearoa.

TUIA is an in-house union formed in 2001 specifically to represent TWoA group staff. TUIA follows the principles of whanaungatanga in all its dealings. The special relationship between TUIA & TWoA group is based on the Kaupapa of both organisations, and a commitment by both parties to address all matters in good faith in order to promote mutual goodwill, co-operation and understanding between the parties.

Obviously paying tax isn’t one of those principles, nor is it mutual goodwill, co-operation and I am struggling to understand why they haven’t met their statutory obligations. The Owl will explain:

TUIA Union (NZCTU Affiliate Union) fails to file GST Returns and Witholding Tax.

Helen Kelly must be worried that one of affiliate unions has broken the law.

The 2012 accounts have been filed and the auditors have qualified the accounts by saying they have concerns whether the Union will be able to trade as a going concern.

In Note 3 of the Accounts the Union made a voluntary disclosure to the IRD that GST was not returned during the 2007 financial year and along with a reference to withholding tax outstanding.

The estimated value of the indiscretion – $70,000.00 (refer Note 3).

Owls Observation

This is why union members should ensure their executives file their returns – I respect the voluntary disclosure by TUIA Union and I am even more impressed with the likes of the Nurses Organisation who declare what their top staff earn.

BUT…If I was a member I would be asking my executive to have the annual reports on the union website as easy reference for all members. It should be union policy for members as good union communication.

Will David Shearer be asking Helen Kelly when she knew of the breach of the law by one of her members?

The Labour Party receives donations from affiliated NZCTU members and if I was David Shearer I would be very keen to know that any donations received comes from law abiding organisations.

The NZCTU receives annual affiliation fees from TUIA Union.

(Note: All information is freely available in the public domain on the MED website)

As MUNZ and the NZCTU run around claiming underhand tactics (“ruse”) on the formation of the new PortPro Union is wanting to negotiate with the ports management (POAL) – a number of interesting issues come to mind.

I wrote many months ago about how Union members pay MUNZ to represent them – secure employment conditions and in particular provide a service. I made the observation that a Union member could indeed take the service provider (in this case MUNZ) to task if the failed to achieve their outcome.

I linked it to the classic contract wording of “offer and acceptance”.

PortPro is a new competitor on the wharf in “Unionland”. They saw an opportunity and decided to build a business around it. What are they offering? – I am assuming “Employment Service Advice”

The general public tends to use the word “Union” – but reality is that a “Union” is an “Employment Service Advice Agency”.

PortPro have 33 members (according to the NZ Herald Report) – or once again shall we call them 33 clients.

Most people in business know that getting 33 clients on day one is a major achievement. In my business I had to give away countless free products before I secured my first full paying customer.

More importantly PortPro is going to advise its clients how to get the best deal in the marketplace, best employment advice and overall secure long-term contracts. One would assume PortPro have sent out details about what they want to achieve and the services they provide. 33 people have decided to become customers or clients.

Even if MUNZ settles with POAL and holds the head collective agreement, the sharp point of this move by PortPro is there is a “new union on the block”. I cannot give a better example of what a “new competitor does” by referring you to the Telco industry – Telecom versus, Vodafone versus 2 Degrees.

There is also the classic story of Virgin Airways and British Airways when the new Virgin airline was set up.

Both examples went through very interesting court cases and parliament stages before the industries were deregulated or as some would say – more regulated.

Telecom spent years in court defending their position and then Parliament split Telecom up.

BAA and Virgin spent years in court with BAA defending strongly their position and then the aviation industry was overhauled by Parliament in England.

The Owl predicts that PortPro is the start of many new Unions to spring up which focuses on Employment Services (and Health and Safety – I do agree H & S is paramount, it is just whether you use it for political reasons) – there may even be a court battle and possibly intervention by Parliament.

For me the most interesting point and I think it will only be resolved in court will be if PortPro is allowed the freedom of speech on the wharf which the Unions have desperately sought in getting accountability on the wharf by the POAL Management and demanding good employer processes.

PortPro now challenges those assertions and tests whether a good employer will allow two unions to operate at one site. Many businesses have multi-union sites so precedence has been set.