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Discussion on the RC into ALP...err...union corruption.

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Tannin Capricorn

Can't remember


Joined: 06 Aug 2006
Location: Huon Valley Tasmania

PostPosted: Tue Sep 01, 2015 11:25 pm
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615 stores in Australia. With an estimated 69% of them participating in this huge scam at the expense of the lowest-paid workers in the country, that is organised crime, with a head office in Mt Waverley and 400+ branch offices spread all over the country.

Did I link this one already?

http://www.smh.com.au/business/workplace-relations/7eleven-wage-fraud-coverup-from-head-office-20150828-gjahrc.html

7-Eleven: wage fraud cover-up from head office "A massive cover-up of employee exploitation is being run out of 7-Eleven corporate headquarters, a joint investigation by Fairfax Media and Four Corners can reveal."

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Last edited by Tannin on Tue Sep 01, 2015 11:26 pm; edited 1 time in total
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Mugwump 



Joined: 28 Jul 2007
Location: Between London and Melbourne

PostPosted: Tue Sep 01, 2015 11:25 pm
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^oh, and for the record, yep, if true, strip 7-eleven of their licence to operate, make them pay back-pay and exemplary damages, then close them down. Their apparent conduct has been unconscionable.
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Mugwump 



Joined: 28 Jul 2007
Location: Between London and Melbourne

PostPosted: Wed Sep 02, 2015 3:03 am
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Tannin wrote:
615 stores in Australia. With an estimated 69% of them participating in this huge scam at the expense of the lowest-paid workers in the country, that is organised crime, with a head office in Mt Waverley and 400+ branch offices spread all over the country.

Did I link this one already?

http://www.smh.com.au/business/workplace-relations/7eleven-wage-fraud-coverup-from-head-office-20150828-gjahrc.html

7-Eleven: wage fraud cover-up from head office "A massive cover-up of employee exploitation is being run out of 7-Eleven corporate headquarters, a joint investigation by Fairfax Media and Four Corners can reveal."


Suppose so. By all means have an RC into that if you think it is necessary. If you can find evidence of something like it happening amongst BHP, CSL, NAB, Wesfarmers - the coporate equivalent of the AWU, HSU, CFMEU etc... then I think an RC into Australian business might yield something. The truth is, however, that the analogy between Australian business and the union movement is flawed in about 15 different ways. Four or five of the most important are :

1. Unions do not operate under the rules of a securities regulator
2. Unions operate a monopoly construct over the workforce they cover, not in competition.
3. Unions do not respond to political pressure by making choices to invest outside Australia
4. Unions in the public sector are not subject to price competition or the disciplines of a competitive market
5. A corporation which chose to periodically deprive the public of its goods in a bid to drive up the prices it could charge would be referred to the ACC quick smart.

For the avoidance of doubt, whether the above are good or bad, right or wrong, is not the point. The point is that unions have particular privileges, freedoms and drivers in the pursuit of economic rents for their members which can be readily abused and need to be controlled to protect the national interest.

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David Libra

I dare you to try


Joined: 27 Jul 2003
Location: Andromeda

PostPosted: Wed Sep 02, 2015 10:46 am
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The fact that there's equivalent (or much worse) corruption in the business world doesn't mean that there shouldn't be an inquiry into unions, though. Yes, it's a political exercise, but that doesn't necessarily make it wrong.

The principle of a Royal Commission is that pretty much anything is a valid target. The only decent reason to oppose one is on the grounds that it's completely irrelevant and thus wasting taxpayer money. Given the history of union corruption, I don't think you can argue that there's nothing to see here.

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Tannin Capricorn

Can't remember


Joined: 06 Aug 2006
Location: Huon Valley Tasmania

PostPosted: Wed Sep 02, 2015 1:22 pm
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^ https://en.wikipedia.org/wiki/Straw_man
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Tannin Capricorn

Can't remember


Joined: 06 Aug 2006
Location: Huon Valley Tasmania

PostPosted: Wed Sep 02, 2015 1:38 pm
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It is an elementary matter to address the worst problems first and hardest. Union corruption is a trivially minor matter in the context of the fraud and corruption in the Liberal-supporting, Liberal-funding business community. And yet this government has pissed $60,000,000 up against the wall to catch - wait for it - four small fry. Four. Yep, four. After months of work and astronomical expense, that's how many union officials have actually been charged with anything as a result of this commission. Four. Oh, they'll find a few more, and there is a handful of others who probably will be charged one day, but whichever way you try to spin it, it's pitifully meagre result for a vast amount of money, time and energy.

Business corruption, in contrast, is massive. The corrupt dealing of the disgraced former Assistant Treasurer - who hasn't even been booted out of the party or the parliament FFS - was aiming at twenty million dollars out of the public purse. That is one example. One. And that one alone was bigger than all the piddly little union scams put together.

Sure, address union corruption. Do it on a wet weekend someday when you have at least made a start on addressing the far, far, far larger and more expensive and more dangerous problems of corruption in the business community and haven't got anything better to do.

Having this union RC is like treating your sister's acne when she's bleeding to death from multiple stab wounds. And I do mean "bleeding to death" - this country is being bled white by greedy "businessmen" gaming the system in a host of different ways, ranging from scamming the tax system right through to deliberate outright frauds like the 7-Eleven wages scam.

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watt price tully Scorpio



Joined: 15 May 2007


PostPosted: Wed Sep 02, 2015 3:40 pm
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Mugwump wrote:
^ Your understanding of hyperbole seems to be as robust as 3's understanding of the difference between an Australian Royal Commission and a Stalinist Show trial.

Not much evidence of corruption in the union movement ? HSU. CFMEU. AWU. Thompson, Maitland, McDonald, Williamson, Wilson, Blewitt. I dealt with unions in Australia for a number of years, and I'm sorry but their standards of governance and conduct are too-often shameful. Back through the Painters and Dockers, the BLF, and the CFMEU, but reaching into the service unions such as the HSU, there is ample evidence of a corrupt culture in many (not all) unions. It's well worth a Royal Commission, and Labour will never hold one because of their inherent conflict of interest on the matter.


You smear the whole union movement with the actions of a few. Like I said before hyperbole. It is not the Union movement but aspects or parts thereof. Your generalization is sweeping.

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watt price tully Scorpio



Joined: 15 May 2007


PostPosted: Wed Sep 02, 2015 3:42 pm
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stui magpie wrote:
watt price tully wrote:


There is not much evidence of corruption in the union movement.


Oh dear. What colour is the sky on your planet?


Read & learn:

Copied response to Mugwump

You smear the whole union movement with the actions of a few. Like I said before hyperbole. It is not the Union movement but aspects or parts thereof. Your generalization is sweeping.

Nothing I've said above is contentious.

Add that to the chip on the shoulder Wink

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Tannin Capricorn

Can't remember


Joined: 06 Aug 2006
Location: Huon Valley Tasmania

PostPosted: Wed Sep 02, 2015 4:00 pm
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watt price tully wrote:
Your generalization is sweeping.


All generalisations are sweeping. *


* Including this one.)

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Gerry Cooper 



Joined: 23 Feb 2012


PostPosted: Wed Sep 02, 2015 4:49 pm
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I have been told by an AFP source that back in the nineties when certain colourful Melbourne and Sydney identities strongly linked to the drug trade were asked by Federal Police to name where they were getting funding and material support for their heroin and cocaine importations, they completely refused to answer any questions. And it seemed to be that as one conduit was closed down, others would open up. The AFP believed then that certain very well known, very wealthy and outwardly respectable business figures had their hands in the drug trade and made a lucrative cut from the resulting drug profits. At the time it was considered by the AFP to be political dynamite to investigate these beliefs. So the players got (and may still be) getting away with it....

Just sayin'...

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Mugwump 



Joined: 28 Jul 2007
Location: Between London and Melbourne

PostPosted: Wed Sep 02, 2015 6:16 pm
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watt price tully wrote:
Mugwump wrote:
^ Your understanding of hyperbole seems to be as robust as 3's understanding of the difference between an Australian Royal Commission and a Stalinist Show trial.

Not much evidence of corruption in the union movement ? HSU. CFMEU. AWU. Thompson, Maitland, McDonald, Williamson, Wilson, Blewitt. I dealt with unions in Australia for a number of years, and I'm sorry but their standards of governance and conduct are too-often shameful. Back through the Painters and Dockers, the BLF, and the CFMEU, but reaching into the service unions such as the HSU, there is ample evidence of a corrupt culture in many (not all) unions. It's well worth a Royal Commission, and Labour will never hold one because of their inherent conflict of interest on the matter.


You smear the whole union movement with the actions of a few. Like I said before hyperbole. It is not the Union movement but aspects or parts thereof. Your generalization is sweeping.


You need to read the definition of "hyperbole". Comparing a Royal Commission to a Stalin or Hitler show trial is hyperbole, ie absurd exaggeration as a rhetorical device. I think you mean unjustified. We'll have to agree to differ on that.

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Tannin Capricorn

Can't remember


Joined: 06 Aug 2006
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PostPosted: Wed Sep 02, 2015 6:18 pm
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If there is a choice between playing at Docklands or the Hyperbole, I'll take the Hyperbole every time.
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Mugwump 



Joined: 28 Jul 2007
Location: Between London and Melbourne

PostPosted: Wed Sep 02, 2015 6:33 pm
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Tannin wrote:
It is an elementary matter to address the worst problems first and hardest. Union corruption is a trivially minor matter in the context of the fraud and corruption in the Liberal-supporting, Liberal-funding business community. And yet this government has pissed $60,000,000 up against the wall to catch - wait for it - four small fry. Four. Yep, four. After months of work and astronomical expense, that's how many union officials have actually been charged with anything as a result of this commission. Four. Oh, they'll find a few more, and there is a handful of others who probably will be charged one day, but whichever way you try to spin it, it's pitifully meagre result for a vast amount of money, time and energy.

Business corruption, in contrast, is massive. The corrupt dealing of the disgraced former Assistant Treasurer - who hasn't even been booted out of the party or the parliament FFS - was aiming at twenty million dollars out of the public purse. That is one example. One. And that one alone was bigger than all the piddly little union scams put together.

Sure, address union corruption. Do it on a wet weekend someday when you have at least made a start on addressing the far, far, far larger and more expensive and more dangerous problems of corruption in the business community and haven't got anything better to do.

Having this union RC is like treating your sister's acne when she's bleeding to death from multiple stab wounds. And I do mean "bleeding to death" - this country is being bled white by greedy "businessmen" gaming the system in a host of different ways, ranging from scamming the tax system right through to deliberate outright frauds like the 7-Eleven wages scam.


I would welcome an inquiry into corporate tax avoidance. The level of fraud by large businesses is less clear, but having worked in some large corporations along the way, i have not encountered any. And i think i would have seen some of it, had it been there. Technocratic managers in large corporations don't take home the proceeds of fraud, so there is no real incentive. Still, if you think an RC would get to the root of it, then define your terms of reference and tip the gold into the open mouth of the legal fraternity.

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HAL 

Please don't shout at me - I can't help it.


Joined: 17 Mar 2003


PostPosted: Wed Sep 02, 2015 6:35 pm
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I will try my best.
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Tannin Capricorn

Can't remember


Joined: 06 Aug 2006
Location: Huon Valley Tasmania

PostPosted: Wed Sep 02, 2015 7:03 pm
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Mugwamp, first we need to be careful with this rather artificial distinction you make between tax avoidance, sharp practice, and outright fraud. Very often, the distinction hinges on nothing more than legal technicalities, and this is especially so in the case of big businesses - the very organisations who are most able to game the system with their phalanxes of high-paid lawyers and slimy accountants.

Second, we can and should recognise that different forms of organisation lend themselves to different modes of theft. I'm using the term here in a broad sense, to include the full range of illegitimate ways of taking money from those to whom it properly belongs, from BHP and Apple avoiding billions in tax responsibilities through to Arfur Slimydinos fleecing the NSW taxpayer out of 20 million, through to 7-Eleven stealing millions from their lowest-paid workers who can least afford it. It's all theft and we need not distinguish between different modus operandi - to do so only confuses the issue.

As a general rule, big corporations tend to prefer the technically-legal-but-dodgy-as-hell methods, while the nakedly illegal scams tend to be more the domain of the smaller operator. This is probably as much a matter of organisational structure as it is of sheer size. For obvious reasons, it's often easier for individual proprietors to conduct downright illegal scams than it is for a public company. So, if you are looking for a $1 billion organisation doing straight-out illegal things, start by looking at the ones which are controlled by a single entrepreneur, or a small, tight group of backers - the likes of Bond and Tinkler are obvious examples. But if you are looking for the just-barely-legal-because-of-a-technicality form of theft, start anywhere you like. (But focus on the big ones first because they are the ones able to do most of it.)

I don't think a royal commission is the way to go, by the way. An expanded and strengthened form of the NSW Independent Commission Against Corruption would be ideal - and perfectly able to go after the few small-fry in the union movement as well as the vastly more numerous and much, much bigger fish in the business world.

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