Dodgy Unions, Ctd

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)

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75% of Unions say no to NZCTU – by the numbers

NZCTU/EPMU Union membership by the numbers (75% say NO) ? Observation by the Owl

The Department of Labour recently released the number of Unions registered in NZ and their membership numbers.

There are 150 registered Unions as per the Department of Labour release of which 37 are members of the NZCTU as per their website.

123 registered Unions have voted not to be part of the NZCTU or 75% of all registered Unions are NOT associated with the NZCTU.

In individual membership number terms that is approximately 43,000 registered union members who are NOT associated with the NZCTU.

The NZCTU website claims their membership is over 350,000 in actual fact it is 336,000 taking the Department of Labour?s numbers and comparing to the NZCTU unions. (I had to guess a few numbers because there are Unions on the NZCTU website which had slightly different names but gave myself the benefit of the doubt.)

The EPMU claim on their website they represent 40,000 workers ? in fact they represent 36,987 which actually bolstered by the takeover of the NZ Building Union in 2011/12.

Owls Observation

Here is the classic 80/20 rule in play. 80% of NZCTU memberships come from 20% of the Unions.

So why do 43,000 union members not want to be part of the NZCTU?

I think it is a very interesting question because 43,000 is? 2/3rd the size of Wanganui.