The main challenger in elections for a troubled Health Services Union branch has been barred from contesting the poll after the Federal Court ruled he was ineligible to stand because he was not a union member.
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Jamie Martorana, a one-time ally of the controversial Kathy Jackson, was one of 25 candidates for the secretary role at the HSU No.1 branch in Victoria and was challenging Diana Asmar, an ally of opposition leader Bill Shorten.
But the Federal Court ruled, after a challenge by Ms Asmar, that Mr Martorana and his running mate Jayne Govan could not stand. Justice Michelle Gordon gave the "Jamie Martorana Team" seven days to find replacements.
Ms Govan said the "rank and file" challenge to Ms Asmar would go ahead. "We had too many people for our ticket to start with," she said. "We have lots of options out there because the membership is so disillusioned."
Elections for the No.1 branch, which represents thousands of low paid workers, have already been much delayed. The branch has been fought over for many years as part of factional warfare in Labor's divided right wing in Victoria.
The Federal Court heard that Mr Martorana, a former HSU assistant secretary, has not worked since October 2010 when he left the HSU from which he received a controversial $240,000 departure settlement that was paid out over two years.
The court heard he had been unable to work because he had experienced trauma after he lost his house in the Black Saturday bushfires in 2009.
But Justice Gordon said that under the union's rules he was ineligible - as was Ms Govan because she was not a member of the union or financial for the required time. Ms Govan had claimed Ms Asmar - secretary since 2012 - prevented her from paying her dues.
The No.1 branch has been a focus of the Heydon royal commission, with claims from Ms Govan that Ms Asmar had told HSU staff that the branch's general manager, Kimberley Kitching, would complete right of entry tests for them.
A number of other former HSU employees made similar statements. Under the Fair Work Act, applicants for the right of entry test - which allows union organisers to access workplaces - are required to sit an online test. Ms Kitching and Ms Asmar deny wrongdoing.
The Fair Work Commission will hold hearings on that issue next week.
Ms Asmar has also denied receiving tens of thousands of dollars from a slush fund run by state MP and former Australian Workers Union state secretary Cesar Melhem.
Mr Melhem told the royal commission he had given the money to Ms Asmar's HSU election campaigns in 2009 and 2012.
