CFMEU troubles yet to touch Cbus

Mike Taylor

Managing Editor and Publisher

16 July 2024

As the Construction, Forestry, Maritime and Energy Union (CFMEU) finds itself in the media and political spotlight, the superannuation fund it spawned, Cbus, continues to grow via both member numbers and mergers.

Cbus differs from many other industry superannuation funds because it is not only an investment vehicle for members’ funds, it is also an active participant in the Australian building and construction industry via Cbus Property..

But, as reports continue to emerge around allegations of corruption within the CFMEU, it is worth reflecting that of the 13 people sitting on Cbus trustee board of directors, just three have been sponsored by the CFMEU.

The other member-sponsored directors are from the Australian Workers’ Union (AWU), the Communication, Electrical and Plumbing Union (CEPU) and the Automotive, Food, Metals, Engineering, Printing and Kindred Industries Union.

The remaining directors are either sponsored by employer groups or are independent directors such Cbus chair, former Labor Federal Treasurer, Wayne Swan and former HSBC economist, John Edwards, who is chair of the fund’s risk committee.

However, it is worth noting the degree to which union influence has played a role in the mergers which have been undertaken by Cbus, most recently with respect to the fund’s merger with NSW-based electricity industry fund, EISS Super.

In 2021 Cbus also merged with the fund covering the media and entertainment industries, Media Super.

The relationship between the CFMEU and industry superannuation funds has been the subject of questioning by Federal Opposition Senators during Senate Estimates this year, with the Australian Prudential Regulation Authority (APRA) having been asked to get to the bottom of why FIRST Super had made four $700,000 payments to the CFMEU.

The regulator was also asked to explain what progress had been made with respect to an investigation it has been undertaking into superannuation funds payments which APRA admitted had been underway for two years with no specific outcome.

APRA deputy chair, Margaret Cole declined to answer specific questions from NSW Liberal Senator, Andrew Bragg, on the basis that APRA’s activities related to an ongoing investigation

As well, the CFMEU construction division boasts having “local Cbus coordinators” who are available to visit workplaces to “provide information and general advice on super”.