In a statement released yesterday afternoon, Ms McKenzie – who is the chair of the Senate Education and Employment Legislation Committee – revealed the contents of a letter sent to her by FWC president Justice Iain Ross.
"[Justice Ross said that] on several occasions Mr Harcourt breached the FWC Code of Conduct by appearing to be politically biased towards the Labor Party," she said.
The FWC president's intervention was the result of complaints by former Liberal senator Helen Kroger that Mr Harcourt had:
- Made ‘tweets’ critical of the government’s Budget speech and complimentary of Mr Shorten’s Budget reply;
- Conducted a television interview in which he appeared to confirm he was a member of the ALP, discussed the possibility of seeking Labor preselection and supported Mr Shorten in the contest for Labor leader; and
- Was a “special guest host” at a $1,000 a head ALP fundraiser.
Ms McKenzie noted this is the second time Justice Ross has had to "counsel Mr Harcourt that his behaviour has put public confidence in the Fair Work Commission at risk".
"By his various public comments and activity, Mr Harcourt had repeatedly aligned himself with the Labor side of politics," she said.
"These actions betray a lack of judgement one would ordinarily expect from a member of the [FWC]."
Mr Harcourt should put the integrity of the FWC ahead of his own personal interests and resign from the Expert Panel, she said.
"Given there is currently a process in train to replace a conflicted Expert Panel member who resigned, Mr Harcourt should also now resign, so his replacement can be considered as part of that selection process," said Ms McKenzie.
The FWC Expert Panel is tasked with reviewing the default superannuation funds that are listed on modern awards.
Financial Services Council chief executive John Brogden said the "turmoil" within the FWC was "extremely concerning".
"The FWC review process must be abolished. It is poorly designed, anti-competitive, conflicted and costly. It will cost superannuation fund members, taxpayers and employers a staggering $400 million if it proceeds," said Mr Brogden.
"An open, competitive process should be adopted where all APRA-approved MySuper products can compete for default superannuation contributions."
