A former union boss who allegedly splurged union funds on two $150,000 luxury trucks including one he kept has denied he had preferred his own interests to those of his members, the royal commission into union corruption has heard.
The Royal Commission into Trade Union Governance and Corruption has heard that James McGiveron, who was secretary of the TWU Western Australian branch from 1993 until the end of 2012 and national president in 2012, eventually took ownership of one of the Ford F350s and fitted it with personalised number plates.
During cross examination on Tuesday, Mr McGiveron said he instructed his personal assistant to pay an $80,000 deposit on the two Ford F350s that were recommended by assistant branch secretary, Rick Burton, who later succeeded him as secretary.
McGiveron said he "was convinced by Mr Burton to purchase the vehicles".
"He [Burton] was an expert on these vehicles," Mr McGiveron said.
Counsel Assisting Richard Scruby on Monday said the union's branch committee of management (BCOM) on July 18, 2012 resolved that Mr McGiveron "be granted ownership of the union motor vehicle that he is driving at the time his employment ceases with the branch".
Asked on Tuesday if he knew in July, 2012 that he would later get to keep one of the F350s, Mr McGiveron said "no".
In a sworn statement, Mr McGiveron said it was common knowledge around the union that he would retire from the branch secretary position before his term of office expired at the end of 2013.
"The plan was that I would wind down my state secretary responsibilities and provide Burton with support, mentoring and guidance before the end of the year, and in the new year, I would step up work on the special projects," he said.
Mr Scruby put it to him that although Mr Burton made the recommendation to buy the F350s, "it was really up to you as secretary to decide whether the branch should purchase the two vehicles".
"The deposit was on your watch?," Mr Scruby asked. "Yes," Mr McGiveron replied.
"Do you accept that when you authorised [personal assistant] Ms [Debra] Hodgson to pay the deposit you were preferring your own interests to the interests of members?," Mr Scruby said.
"No," Mr McGiveron answered.
Mr Scruby read from a letter he said Mr McGiveron wrote to the BCOM which said: "Although there was nothing illegal about the gifting of the vehicle ... the cost played on my mind. At the time the BCOM decision was made to give me a vehicle after 28 years of dedicated service including 18 years as the branch secretary, I was humbled that the union thought so highly of me."
Asked if he accepted that at the BCOM meeting of July 18, 2012, "you should have told the meeting that you and Mr Burton were considering purchasing two F350s?", Mr McGiveron said "No".
But, "in hindsight" Mr McGiveron said he should have told the BCOM about the deposit paid for the two F350s.
"When I agreed to put this deposit down after the discussions with Mr Burton I wanted it to be on his watch. He wanted to spend the money. I'd given him a commitment earlier on that he was basically could call the shots and his first big thing that he brought to me was with respect to the vehicles and I agreed to do the deposit on the vehicles and that's it," Mr McGiveron said.
He said he signed contracts to purchase the vehicles before the deposit was paid.
"And you understood didn't you when you signed the contract you were committing the branch to pay not just the deposit but the entire purchase price?," Mr Scruby asked.
"Yes," Mr McGiveron answered.
Mr McGiveron said he did not expect that he would later take ownership of an F350 which he thought would take him through the Kimberley region of WA in his role managing "special projects" after he stepped down as branch secretary.
He denied that his successful proposal to introduce a redundancy policy in 2012 - which later delivered him more than $370,000 - was designed to reward him with a "significant amount of money from the branch".
Mr McGiveron said the policy he introduced "was in the best interests of the branch and the best interests of the people employed at the branch,"
"And you proposed it because it was in your interests?," Mr Scruby asked. "No," Mr McGiveron replied.
During cross examination on Tuesday, Ray McMillan, president of the TWU WA branch, said Mr McGiveron later sold the F350 for $100,000 and the BCOM substituted it for a Mazda BT-50.
Mr McMillan said the purchase of the two F350s "was never disclosed to the BCOM or the finance committee".
"At meetings in February 2013 and April 2013, the BCOM endorsed the purchase of motor vehicles by reference to number plates only," he said in a sworn statement.
"I saw a Ford F350 in Mr James McGiveron['s] driveway sometime in 2013. I thought it was his personal vehicle," Mr McMillan said.
When Mr McMillan spoke to Mr Burton in March or April of 2013, Mr Burton allegedly said words to the effect of: "This is my new car. I bought it for $160,000. I sold my old car for $60,000 to my daugther's partner, so I ended up paying about $100,000 for it".
"Based on that conversation, I understood the Ford F350 to be Mr Burton's personal vehicle," Mr McMillan said in his statement.
