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The Forum > General Discussion > Fiduciary Responsibility and Conflict of Interest

Fiduciary Responsibility and Conflict of Interest

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Bill Shorten, having attended Monash Law School should have a firm grasp of these concepts:

A fiduciary relationship is where one person (the fiduciary) undertakes to act for another (the principal), and in doing so, must place the principal's interests ahead of its own. A fiduciary has duties to his client. They include
Not to place oneself in a position of conflict of duties relating to the principal and the fiduciary’s interests;
Not to make a profit out of the principal’s trust;
Not act for one’s own benefit or the benefit of third parties, without the consent of the principal.

A conflict of interest (COI) is a situation in which a person or organization is involved in multiple interests, one of which could possibly corrupt the motivation of the individual or organization.

A union that has sole negotiating rights on behalf of workers has a clear fiduciary duty. And taking money from the party with whom the union is negotiating with on behalf of the workers is a clear breach that is nothing short of corruption.

I can't help but notice that the coalition is moving to reintroduce its legislation to re establish the ABCC and move to stamp out corruption in the unions. If this gets blocked in the senate again, it forms a trigger for a DD election based on union corruption, timing this with negative findings on Shorten would be a disaster for Labor and partially for the Greens.
Posted by Shadow Minister, Saturday, 18 July 2015 8:36:16 AM
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You keep dreaming there shallow minister.
Any DD will see the lieberals decimated for their perfidy and attacks on the weak and vulnerable.
The only conflict of interest is rabbott serving his master murdoch instead of the Australian people like he is supposed to.
Posted by mikk, Saturday, 18 July 2015 8:29:55 PM
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Mikk,

If the battle is fought on the handling of the economy and trade union corruption while Shorten is getting done for swindling workers, looks like bringing back a carbon tax and starting the boats again, I think that votes will change.
Posted by Shadow Minister, Saturday, 18 July 2015 8:34:08 PM
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Wishful thinking there SM. The workers are not so sensitive when it comes to their unions, whereas they are very sensitive when it comes to Abbott and his agenda.
We were promised a DD 2 years ago.
What is Shorten guilty of or is it your opinion. Government corruption is very different in deed. Misuse of public funds, punishable by public opinion.
Abbott's election run on lies will count hugely.
Abbott and majorities do not jell.
We need an election now.
Posted by doog, Sunday, 19 July 2015 7:29:17 AM
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doog,

You make your political bias very obvious.

Shadow Minister,

Unions and their leaders have earned a reputation for corruption and the 'ends justify the means'. Most union members would be aware of union heavies obtaining benefits for themselves and their cronies, which can involve favouritism in winning plumb positions.

Some unions make it very difficult indeed for the public to see any difference between organised crime and unions.

That is one of the reasons why union membership has dropped.

However the public expectation that unions are inevitably corrupt may also blunt the public reaction to the unethical, immoral and sometimes illegal behaviour of present and past union bosses and their political associates.

The government has a lot of explaining to do to convince the public that it doesn't always have to be that way and yes, it is unprincipled and a breach of trust.

The problem for the LNP is that they have long forgotten how to listen and talk with young people and it is the other 'side' who have their ears, particularly through the spin that is common in education and on the ABC. Tony Abbott needs to be a statesman and he should also be demanding that his team do the hard yards as well to deserve reelection.

Better to concentrate on what the LNP has done and is offering than descend to the current (gutter) level of debate of Labor and the Greens 'Protest' Party.
Posted by onthebeach, Sunday, 19 July 2015 8:25:02 AM
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Since when has unions talked nice to any employer. That does not work, results come from standing up for workers rights, not asking like a mob of school girls or boys.

Employers will exploit any loop hole they can find, without fear of laws. Abbott will never live to see him being excused for running an election on lies, master-mining a victory by fraud. He grossly misjudged public opinion with his fat cat budget didn't he.

Public debt has increased by 100 billion $ in 2 years, we have not moved forward at all in that time. The fix it Tony has failed miserably you could say. Lately he has shown signs of reverting to his former self, when he had a mandate on the back of a fraud election, remember that.
Posted by doog, Sunday, 19 July 2015 9:32:46 AM
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Doog,

If workers aren't so sensitive to the corruption of their unions, why is union membership dropping so much? Union membership has dropped from 23% in 2003 to less than 17% today, much of which is made up by public servants? membership outside the public service is as low as 1/9.

Workers are not stupid and realise that they are being sold out.
Posted by Shadow Minister, Sunday, 19 July 2015 10:52:39 AM
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We need an independent federal agency to fight
corruption in political parties and other places
including trade unions, sports bodies and of course
companies. An agency that is independent from
the influence of the government.
Posted by Foxy, Sunday, 19 July 2015 10:57:41 AM
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Foxy,

There are many independent bodies that regulate activities. Lawyers have the Bar association, Companies have to have their books independently audited, and report to shareholder directors, Doctors have the medical association, Traders have their oversight, etc.

The problem with the unions is that anytime any legislation is put in place to oversee the unions, it is removed or reduced by labor to be completely useless.

For example, the unions' books have no independent scrutiny, and unions only have to submit a general vague statement to the FWA every year, for which most unions are years behind. Corruption and dodgy deals such as in the HSU and the AWU can go on for years with no one knowing. The unions all have a monopoly on their fiefdoms, where no one else is legally allowed to challenge them for the right to represent people, and it has all the markings of organised crime.

If a lawyer was representing Cleanevent workers and took money from Cleanevent, the Bar association would ensure he never worked as a lawyer again. The book keeper that invoiced for non existent training would go to jail, etc, etc.
Posted by Shadow Minister, Sunday, 19 July 2015 11:47:01 AM
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The lower end workers know they don,t have to be members to get the benefits. The union has always looked after the workers across the board, members or not.
The decline in manufacturing has something to do with it also.
Some are more than happy to pay fees for their workers. It’s a matter of choice for management.
Abbott has resurrection of work choices in his agenda, as we all know. So don’t believe anything he says as a proven professor of mass pork, his credibility has holes doesn’t it.
Labor is not in the business of treading on the workers, or disadvantaged persons, that is a coalition thing. Labor believes in a fair go for all, workers and employers. You could say Labor stands for middle ground.
The term so far of this parliament has not been good , we have not advanced at all. The first 3 months was nothing but one big backflip as Abbott’s mandate faded into oblivion. We can’t just mark time and hope corrections will take place without effort.
I think we may find out that billions of $ have been spent on our behalf which we are not allowed to know about, and for what benefit to the nation. Not a good look at all.
White collar crime in this country is what needs cleaning up, starting at the very top of authority in this nation. When we have persons roarting the system under the guise of parliamentary privilege something is grossly wrong.
Posted by doog, Sunday, 19 July 2015 11:55:07 AM
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Dear Shadow Minister,

Let us see if what the Coalition is proposing will
pass muster in the Senate. Will the agency (ABCC) that the
Coalition is proposing to bring back be an
independent statutory body or will it be accountable to the
government?

Just asking.
Posted by Foxy, Sunday, 19 July 2015 11:55:44 AM
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Foxy

"The Office of the Australian Building and Construction Commissioner (ABCC) (2005–2012) was an independent, statutory authority, responsible for monitoring and promoting workplace relations in the Australian building and construction industry. The ABCC provided education, investigated workplace complaints and enforced compliance with national workplace laws in the industry. The ABCC did this by:

Providing information, education and advice on Commonwealth workplace laws;
Investigating complaints or suspected contraventions of workplace laws; and
Taking court action to enforce workplace laws."
Posted by Shadow Minister, Sunday, 19 July 2015 12:46:21 PM
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Employers were happier dealing with union dialogue. Not all laws fit or can be made to fit.
Laws imposed had their unrealistic approach that one law fits all, where as union would fisacally see the job and application of work at hand.

Agreements between union and management ground against each other when it came to stipulated laws. Besides that a same day deal could be struck.

Unions do not go against health and safety, as a matter of course
Posted by doog, Sunday, 19 July 2015 1:05:32 PM
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Dear Shadow Minister,

I'd better quit as I have to admit that I don't
know too much about the ABCC. Suffice to say that
the unlawful conduct that seems to pervade the
building industry is common knowledge. Whether it
can only be contained by a strong watchdog with
strong powers I really don't know.
Posted by Foxy, Sunday, 19 July 2015 3:01:59 PM
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cont'd ...

I meant to add that - Construction is one of those
industries which attracts commercial and
criminal intimidation. To stop it the law needs to
specifically target this behaviour.

Essentially I guess it is up to the Senate to support
or reject what is currently going to be presented by
the Coalition.

Hopefully, the right decision will be made for all
concerned.
Posted by Foxy, Sunday, 19 July 2015 6:35:55 PM
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Foxy,

The point I was trying to make is that criminality is rife in the unions especially in the building industry primarily because there no oversight and no accountability. If the same reporting requirements were required of the unions as even the smallest of businesses, crooks would be exposed far quicker and crooks put in jail.
Posted by Shadow Minister, Sunday, 19 July 2015 7:56:53 PM
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OTB said;
The problem for the LNP is that they have long forgotten how to listen and talk with young people

I think you might be right and you know why ?
The young have seen the hard work for nothing that their fathers have
put into the farm and have left. There are only the older farmers left
so it is no wonder they only talk to the older voters.

The question I have is do we starve or eat Chinese food ?
Posted by Bazz, Monday, 20 July 2015 8:52:13 AM
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Criminality is a police matter, i don't think Abbott has any such thing in mind. He is more in the line of deregulating unionism.

In the large scale building jobs the builders and unions need each other, the builders like their profit margins and the workers like their wages and conditions. Without that balance profit margins would fall, and no one would want to take the risk.

Lets await Abbott's wordings
Posted by doog, Monday, 20 July 2015 9:55:35 AM
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Dear Doog,

It will be interesting to see what the wording is,
and whether it is accepted or rejected in the
Senate by a majority and why.
Posted by Foxy, Monday, 20 July 2015 10:28:07 AM
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The day those unions and 'their' men on building sites show due care for the quality of construction I will walk to the Gulf - along with thousands of others.

The same applies to home construction.

In both, the Australian Standards, Building Code and manufacturers' use and installation guides are seen as hindrances and cost-cutting is quickly hidden behind cladding and the ubiquitous silastic gun is the tradies' best friend.

Why have Standards if they are not the obligatory minimum throughout Australia, no argument?

Yesterday I was at a reception at a major university and noted as we walked the final metres past relatively new buildings how the exterior of one and its concrete steps and landscaping had large cracks and shedding chunks, exposing the rusting reinforcing. Someone had applied concrete repair over some and the ends of the reo were still protruding.

You even hear of balconies collapsing. Anyone foolish enough to lean on a balustrade? Check the routine (mis)use of incompatible metals and anchors set in tiles and compressed sheeting, but not into the structure below.

There are many hundreds of young, skilled tradespeople in Ireland, Germany and northern Europe - where builders are capable of constructing weather-proof and strong - who would migrate to Australia if they were encouraged.

BUT NO, feckless Australian governments and particularly the recent Gillard+Green circus, HAVE to take in prospects from s'holes like Afghanistan to join the Centrelink queues. It is all about the 'diversity-Australia-has-to-have', extremist multicultural policies, you know.
Posted by onthebeach, Monday, 20 July 2015 11:54:58 AM
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I agree with your opening submission 'SHADOW MINISTER', where you draw a comparison with a Office Holder has a clear responsibility to act entirely for the benefit of those for whom he represents. To do otherwise amounts to a fraud, perhaps not in the true criminal sense, certainly morally at least.

All my working life I've noticed how 'close to the edge' some union officials act in many instances, unfortunately some venture over that invisible line, between doing what's right, or engaging in wrongdoing. Certain officials of the Health Workers Union (whatever they're called?) have sullied not only their own reputations, but have cheated their membership out of their hard earned dollars ? A reprehensible act in my opinion ! Even my own Association, has had allegations made against some of it's officials ?

I've no idea if Mr SHORTIN has a case to answer ? If he has, then prosecute him. These Royal Commissions, Judicial Inquiries, all should be held in camera. Because when a witness is named during proceedings, if innocent their good fame and reputation are besmirched for all time. If guilty, they can claim 'trial by media', therefore they may seek greater judicial forbearance, if otherwise they were initially unnamed during the progression of the Royal Commission.
Posted by o sung wu, Monday, 20 July 2015 3:31:02 PM
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