UNION boss Kathy Jackson should not keep her position in the east branch of the Health Services Union because ''she is very much at the epicentre of the dispute'', Federal Court Justice Geoffrey Flick has found.

Former Federal Court judge Michael Moore has been appointed administrator of HSU East after it was declared to have ceased to function effectively amid factional warfare and allegations of misconduct.

Ms Jackson will lose her position with a $270,000 annual salary, after Justice Flick dismissed her argument that she would suffer ''substantial injustice'' if she lost her job.
Advertisement: Story continues below

''Irrespective of the merits or otherwise of the allegations she has made, she is at least partly responsible for the collective dysfunction of the federal branch and state union,'' he said.