Inquiry into union activities under way

The federal government's royal commission into alleged union corruption is officially under way. Source: AAP

PRIME Minister Tony Abbott insists he wants a royal commission to root out corruption in the trade union movement for all honest unions and workers.

The inquiry officially began on Friday under the leadership of former High Court justice Dyson Heydon QC.

It will focus on five unions, including the Health Services Union (HSU), which was once led by former Labor MP Craig Thomson, who was recently convicted of misusing HSU funds.

Mr Heydon will inquire into trade union governance arrangements, alleged financial irregularities and the conduct of union officials.

Alleged bribes, secret commissions or other unlawful payments will also be covered.

Unions have called the royal commission a political witch-hunt designed to weaken the labour movement, and Opposition Leader Bill Shorten has said allegations of union corruption should be referred to police.

Mr Abbott accepts the inquiry could cause problems for the Labor party but says the war is on corruption, not unions.

"The intent is to try to ensure we have honest unions," Mr Abbott told ABC radio.

"For too long, too many members of the Labor party have been defending the indefensible."

Attorney-General George Brandis says protecting the interests of union members can best be done with the powers of a royal commission.

A person of Mr Heydon's eminence would not involve himself in a political witch-hunt, Senator Brandis said.

He told reporters Mr Shorten owed his position as Labor leader to trade union bosses, and was a former trade union boss presiding over a shadow cabinet of former trade union bosses.

"I hope the Labor party has nothing to fear because if members of the Labor party are fearful, it is only because they have engaged in or know about misconduct," he told reporters in Sydney.

The commission, which is due to provide its final report by December 31, will hold its first hearing on April 9.

The chief executive of resource industry employer group AMMA, Steve Knott, says the royal commission is an opportunity to stamp out unacceptable breaches of the trust of working people, and of the country's laws.

"It will compel employers, employees and union representatives to provide witness evidence and finally remove the shield of legal privilege from wrongdoings and cover-ups," he said.

The Australian Industry Group wants the commission to focus on funds and entities established by unions purportedly to provide redundancy, income protection and training benefits to members, but which provide lucrative and inappropriate revenue streams to unions.

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