Former Health Services Union boss Kathy Jackson has been ordered to repay $1.4 million in compensation to the HSU for misuse of union funds. After taking over as national secretary for the HSU in 2008, Jackson revealed a tale of wide-spread abuse of power by then HSUeast general secretary Michael Williamson and former HSU national secretary and Labor MP Craig Thomson. The events that followed led to her own downfall.
January 2008
Jackson succeeds Thomson as national secretary of the HSU of Australia. External auditors are appointed to investigate financial irregularities in union accounts linked to Thomson.
May 2008
The audit raises concerns about the misuse of union money by Thomson.
December 2008
The HSU appoints BDO Kendall to investigate the alleged improper use of a union-issued corporate credit card by Thomson.
April 2009
Fair Work Australia begins its three-year investigation into misuse of union funds. Thomson categorically denies all allegations against him, including cash advances over five years totalling more than $100,000 and payments for escort services.
Thomson says the allegations are the result of feuding within the HSU, “with more and more claims and counter-claims being made”.
August 16, 2011
In response to a question, then Prime Minister Julia Gillard says she has complete confidence in Thomson.
August 24, 2011
Jackson formally refers allegations against Thomson to NSW police. She says the HSU’s first responsibility is to its members.
August 26, 2011
A dirt-covered shovel is left on the doorstep of Jackson’s Melbourne home in an apparent threat.
September 9, 2011
The Sydney Morning Herald reveals allegations relating to Thomson and Williamson, general secretary of HSUeast . The SMH report details that HSUeast , under the leadership of Williamson, engaged the services of IT company United Edge without going to tender. Williamson was a director of United Edge.
October 2011
Williamson is suspended as national president of the HSU.
April 26, 2012
An annual statement tendered to FWA for its audit details that a third of the $1.5 million in fees paid by members of the HSU in 2010 went to Jackson. $522,570 of the fees, paid by members of the HSU’s now defunct Victorian “number three” branch, went to Jackson under “employee benefits to key management personnel”.
Jackson provides an email indicating that the statement was incorrect, and she was actually paid $75,884. That payment was in addition to her salary from the national office.
Workplace Relations Minister Bill Shorten says that he will seek to have HSUeast put into receivership and to have positions there declared vacant.
Jackson calls Shorten’s move a cheap stunt. “It’s very predictable, we’ve been calling for intervention for a while now, the union is in crisis.”
April 29, 2012
Prime Minister Gillard moves to suspend Thomson from the Labor Party.
May 2, 2012
As part of “Strike Force Carnarvon”, NSW police raid the HSU Sydney office. They seize computers and documentation relating to secret commissions allegedly received by Thomson and Williamson. Police intercept Williamson, who allegedly attempts to remove documents during the raid.
May 7, 2012
FWA tables its investigation to the Senate after three years, detailing a long history of union fund misuse by Thomson.
May 21, 2012
Thomson addresses the House, noting that the FWA report largely addresses allegations made by two people: Jackson and Williamson. Thomson says Jackson is “not someone who comes to this issue with clean hands”.
June 2012
The Federal Court dissolves Williamson’s position as general secretary of HSUeast and declares all elected positions vacant. An administrator is appointed to run the union’s affairs.
October 4, 2012
Relating to fraud and obstruction of justice, Williamson is charged with more than 50 offences.
October 15, 2012
FWA engages Thomson in civil proceedings.
October 24, 2012
Police officers search Thomson’s home, recovering computers and documents.
January 31, 2013
Thomson is arrested by NSW police, and faces 173 charges of theft and fraud during his time at the HSU.
February 2013
Thomson is granted bail, claims he is innocent and says he will defend all charges.
October 15, 2013
At the Sydney Magistrates Court, Williamson pleads guilty to four major charges, while all other charges are dropped. The charges relate to: defrauding HSUeast, creating false documents with the intention to deceive, and the recruiting of others to hinder a police investigation.
February 18, 2014
At the Melbourne Magistrates Court, Thomson is found guilty of defrauding the HSU.
February 25, 2014
The House of Representatives, led by Christopher Pyne, calls for an apology to be issued to all HSU members for the actions of Thomson, extending to people named personally by Thomson during his speech. Pyne calls Jackson “a revolutionary, who will be remembered as a lion of the union movement”.
March 25, 2014
Thomson is sentenced to 12 months imprisonment with nine months suspended for two years.
March 28, 2014
At the District Court of New South Wales, Williamson is sentenced to seven and a half years’ imprisonment, with a non-parole period of five years.
In sentencing, District Court Judge David Frearson calls Williamson’s actions “a parasitic plundering of union funds for pure greed”.
June 2014
Jackson fronts the Royal Commission into trade union governance and corruption, saying she suffered a mental breakdown after exposing corruption at the HSU. Jackson says she is the victim of a smear campaign, and denies allegations of union fund misuse, where she is linked to a union slush fund of more than $1 million.
Jackson is asked about the circumstances of a $50,000 payment which she authorised, but cannot recall what the money was for.
July 2014
Jackson admits that the $50,000 payment was to her former husband, Jeff Jackson. In relation to a $250,000 payment from the Peter MacCallum Cancer Centre to her HSU No.3 branch, Jackson admits using that money for a bank account from which she withdrew tens of thousands of dollars for personal spending.
October 2014
Citing mental health problems, orders and medical directions to “disengage from this process for three months”, Jackson applies to delay the $1.4 million lawsuit brought against her by the HSU for the misappropriation of union funds. Justice Richard Tracey, frustrated by Jackson’s non-compliance with court orders, gives her until early November.
November 2014
The trial against Jackson is delayed due to mental health problems.
December 2014
Following an appeal, a prosecution error results in Thomson being found not guilty of 49 charges, but he is found guilty of 13 charges of theft. Thomson is convicted and fined $25,000.
February 2015
Justice Tracey rejects a further bid by Jackson to delay the trial and sets a date of June 29.
Jackson is replaced by Chris Brown as HSU national secretary.
June 24, 2015
HSU seeks an injunction to freeze Jackson’s assets, including the sale of her $1.3 million NSW property.
June 29, 2015
Jackson declares bankruptcy, potentially derailing the hearing.
July 3, 2015
Justice Tracey says that the trial can proceed despite Jackson’s financial status, orders trial to proceed.
August 19, 2015
Justice Tracey orders Jackson to pay $1.4 million in compensation to the HSU for misappropriation of union funds.
