Sunday 20 November 2016

Personal Honesty !

How honest is the average citizen ?   It is impossible to deliver a definitive answer to that question because honesty is directly geared to the circumstances of temptation.   A person who would never even think of shoplifting items from a store might not hesitate to pocket a bundle of banknotes  that fell off a passing money truck.   Usually that lapse into dishonesty is a spur of the moment evaluation between risk and reward.

In recent years the public have been treated to sordid publicity on the prosecution of Trustees who have diverted union funds for their own use.  The stories that have played out in court are lurid. Funds have been dispersed for the hiring of prostitutes, alcohol, luxury travel and expensive personal items which have run to tens of thousands of dollars.  In most cases there is little hope of any substantial recovery of the money lost.

Once again the misuse of union funds is drawing headlines.    The forty-five year old secretary of the National Union of Workers is facing charges of misappropriating $ 440,000 of funds under his control and the unions female Accounts Manager, ( 43 ) of delving into funds to the tune of $ 430,000.    It is alleged that the money was spent on Tiffany's jewellery,toys, an online dating service, personal travel - and even a Tattoo.

It is an all too familiar scenario.  Union members are charged fees to fund the union services that protect them and usually the secretary and other fund officers are elected to office from the rank and file.  Getting elected to union officeholder is a path to power and some go on to serve on the national body or get elected to parliament.   Sadly, few have even a rudimentary accounting skill.   The scene is ripe for corruption.

The union movement is a broad church.  Some unions are run efficiently by dedicated officeholders and serve their members well.   Others are little more than a criminal gang seeking to extort from the industry they serve in a combative role.   The union movement is beholden to a political party and often its direction is serving a political end rather than bringing benefit to its members.  The political choice of individual union members is totally ignored.

Legislation is before parliament to create a statutory body to reign in the outlaw practices of militant unions.    This is being violently opposed by both the union movement and its political benefactor and passage into law is not assured.   To achieve its purpose, it is hoped that union funds would be protected from the depredations of officeholders by being insulated under the control of recognised accounting houses.

There is historical evidence that union funds are not safe when their dispersal is entirely in the hands of an elected secretary who may not be skilled in recognised commercial practice.  If those funds were lodged with an accounting firm invoices for services would get a professional scrutiny and any purchase made on a credit card would need to meet legal parameters - and be accompanied by a relevant receipt.

One of the reasons the union movement has shrinking membership can be attributed to the constant bad publicity about misuse of members funds.   It is evident that some officeholders treat the union treasury as their own personal piggy bank.    The rules that currently apply do nothing to reduce that element of temptation.

This ethos of personal honesty is not enhanced when members of parliament are chastised for exceeding their entitlements !

No comments:

Post a Comment