Taxpayers have funded $1.6 million in payments to the firefighters union via Fire Rescue Victoria, court documents say, under an income protection scheme the state’s fire chief has said should outrage all Victorians.
The fire authority is now suing the United Firefighters Union (UFU) in the Federal Court for deceptive and misleading conduct and wants the money paid back.
Court documents have alleged the money was accumulated through monthly service fees paid to the union since 2023, which doubled from $30,000 to up to $60,000 in that period.
These payments have been described as a “secret commission” by the Fair Work Commission, according to court documents.
Fire Rescue Commissioner Gavin Freeman said FRV had concerns about the “integrity” of the income protection scheme that has been running since 2023.
Gavin Freeman says the FRV Â has the “obligation” to challenge the union. (ABC News)
“It became apparent that $1.6 million had been diverted into the United Firefighters Union for their own purposes, so I have an obligation to challenge that,” Mr Freeman told the ABC in an exclusive interview.
“This is public money. This is the Victorian taxpayer’s money we’re talking about.
“I’ve got a responsibility to make sure it’s been used appropriately.”
Mr Freeman said the issue may be referred to anti-corruption watchdogs.
FRV’s fringe benefits tax bill has also blown out by $10 million under the scheme, which Mr Freeman said was due to the union spending the money on expenses other than income protection.
UFU changes income protection provider in 2023
Taxpayers pay for the UFU members’ income protection scheme through FRV at a cost of more than $50 a week per firefighter. Income protection is paid to people who can not work due to sickness or injury.
Two years ago, at the request of the powerful union, the income protection provider was changed to a new group run by a discretionary trust, which was funded by FRV.
Under the new arrangement, firefighters continued to be reimbursed $50 a week. But the UFU were also receiving up to $60,000 a month from the trust in the form of a “service fee”, which court documents say doubled from $30,000 in 2024.
Income protection is paid out to firefighters who cna not work due to sickness or injury. (Source: Fire Rescue Victoria Facebook)
These service payments have amounted to $1.6 million.
FRV is seeking restitution of these payments in court. The trust has already stopped making payments to the union.
“Some of the funds were being used for things other than income protection … which incurred fringe benefits tax, a $10 million per year increase to our fringe benefit tax liability, and that’s something Victorians have to pay for,” Mr Freeman said.
“I think they [Victorians] should be outraged. Victorians are paying for this, and I’m all for providing the entitlements that our people deserve and are entitled to. They [firefighters] do an amazing job, but if that money is being used for anything other than its intended purpose, that is not right.”
Union says focus is on firefighter safety
The previous income protection provider, ATC Insurer, has already sued the UFU, after a dispute led union secretary Peter Marshall to “sack” it, causing confusion and anger among firefighters.
Mr Marshall said FRV was spending millions of dollars in legal fees to run litigation against firefighters.
“There are lots of issues going on at the moment,” Mr Marshall said in a press conference. “Lots of public money is being spent on litigating firefighters, that’s just another day in our reality.”
Asked repeatedly about the income protection scheme, Mr Marshall said his focus was on firefighter safety and government accountability.
“The most important issue is firefighter safety.”
UFU secretary Peter Marshall refused to answer questions about the income scheme. (ABC News: Stephanie Anderson)
Mr Marshall is demanding a parliamentary inquiry into the opening of the Metro Tunnel and West Gate Tunnels after Fire Rescue Victoria finally informed firefighters of ongoing issues with radio connectivity in the tunnels.
The UFU had previously raised safety concerns about radios but these were dismissed.
“The fire service is in crisis. Radios don’t work, breathing apparatus [don’t work], 60 per cent of the trucks should be off the road,” Mr Marshall said.
He is demanding Premier Jacinta Allan apologise for putting firefighters in danger.
The UFU is stuck in a protracted industrial dispute with FRV and the state government over pay and conditions.
Despite the legal action, Mr Freeman said all Victorians should continue to have the utmost confidence in FRV’s ability to respond to any and all emergencies.
A Victorian government spokesperson said it expected “public funds to be appropriately used and swift action taken when there’s any suggestion otherwise”.
“We have full confidence in the leadership and decisions of Fire Rescue Victoria, and we’ll continue to work with the commissioner to address issues affecting the workforce,” they said.
“Neither the government nor FRV have any intention of weakening or removing access to income protection allowances for firefighters.”