THE royal commission into union governance and corruption is set to open in Sydney with evidence from a man linked to the slush fund scandal that dogged former prime minister Julia Gillard.
Over the coming months the inquiry will investigate alleged slush funds in relation to the Australian Workers Union, Construction Forestry Mining and Energy Union, the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union, Health Services Union and Transport Workers Union of Australia among others.
Former AWU official Ralph Blewitt will be the first witness to appear before Justice Dyson Heydon on Monday, after flying in from his home in Malaysia for the hearing.
In the early 1990s Mr Blewitt and another AWU official Bruce Wilson established the AWU Workplace Reform Association, with the help of Ms Gillard, a lawyer with Slater & Gordon and Wilson's girlfriend at the time.
The fund was allegedly put to a range of personal uses.
Ms Gillard has consistently denied any wrongdoing.
During opening remarks at a preliminary hearing in Sydney last month Justice Heydon laid out tough penalties for bribing commission witnesses or obstructing the inquiry, including fines of up to $20,000 and up to five years' imprisonment.
The commission is expected to deliver its final report to the federal government on December 14.
"The terms of reference rest on certain assumptions which are not hostile to trade unions," Justice Heydon said.
"The terms of reference do not assume that it is desirable to abolish trade unions. They do not assume that it is desirable to curb their role to the point of insignificance.
"Instead, they assume it is worth inquiring into how well and how lawfully that role is performed. They assume that it is desirable for that role to be well performed and lawfully performed."
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