Loyalists to Health Workers Union boss Diana Asmar are barred from running the Victorian branch in the ongoing legal fight over alleged rorting of union funds.
The Federal Court on Monday threw the Health Workers Union, a sub-branch of the Health Services Union, into temporary administration.
It followed Ms Asmar having her secretary duties restricted on December 13, preventing her from carrying out her role until the court decided whether to make the administration order.
The Health Services Union wants administrators appointed, claiming the Health Workers Union is dysfunctional after the Fair Work Commission alleged Ms Asmar falsely claimed more than $120,000 as business expenses and to prevent her allies from maintaining control of the branch.
Former National Union of Workers general secretary Charlie Donnelly will be the interim administrator.
“This outcome is a big win for HWU members and justifies the resolve of our union in seeking interim administration,” Health Services Union national secretary Lloyd Williams said in a statement.
Justice Craig Dowling first made orders on October 7 limiting Ms Asmar's powers, including preventing her dismissing any employees or altering their employment.
Ms Asmar made an undertaking to the court she would follow the judge's orders.
It had come after Ms Asmar allegedly claimed so-called "traitors" would regret betraying her, a couple of weeks before five staffers and two officials were stood down.
Two union officials from the Victorian branch were then stood down and five call centre workers dismissed on November 11.
The Health Services Union's application is due to return to the Federal Court in April for an eight-day hearing.
