How the CFMEU saved BUSSQ over $1m
Using the Construction, Forestry and Maritime Employees Union (CMFEU) to chase up superannuation guarantee payment arrears has saved Queensland-based building industry superannuation fund, BUSSQ, more than $1 million a year.
That is one of the interesting facts to emerge from the independent review of BUSSQ ordered by the Australian Prudential Regulation Authority (APRA) and carried out by KPMG.
The review gave BUSSQ what amounts to a pass mark but it also drew back the curtain on the working relationships which exist between industry superannuation funds and their trade union sponsors.
And while it confirmed the amounts of money which passed from BUSSQ to the CFMEU in terms of sponsorships, it also revealed that in some instances the super fund’s expenditure with the union actually generated savings for members.
A classic case was BUSSQ’s use of CFMEU personnel and resources to chase up superannuation guarantee arrears with the KPMG report noting that this represented the most cost-effective option for the fund when compared to employing a debt collection agency.
It said employing a debt collection agency would incur a commission of 15% of the amount recovered (or equivalent to approximately $1.3 million based on recoveries for CY23).
“This is significantly higher than the flat service fee paid to the CFMEU (approx. $160,000 for CY23), demonstrating fair value to members,” the report said.
On that basis KPMG said that while board reporting of such expenses could be enhanced, “KPMG concludes that the in-scope CFMEU Arrears Collection Expenditure Decisions were made for the sound and prudent management of BUSSQ’s business operations”.
The KPMG report also identified merit in BUSSQ’s sponsorships of the CFMEU for the access it provided to members at work sites and therefore fee revenue noting $1.3 million annualised for FY25 generated from new members and members retained within BUSSQ.
It said this exceeded the proposed sponsorship cost of $165,000 for FY25.
When it came to actually paying director’s fees, BUSSQ also gained a pass mark from KPMG.
“Based on our review of the Committee and Board papers for the annual remuneration review for Directors for FY24 and FY25, including the relevant industry surveys undertaken, BUSSQ Director fees were below the industry average,” it said.
Bikies debt collections cost efficient huh, no mention or no looking for the rest of the back hand costs,
But yes most people will pay up when threatened by bikies.
Id imagine the KPMG little auditors might have felt some Bikie heat too, what a glowing report.
Seems Bikie muscle will be promoted as Union / ALP / ISF Super debt collection services nation wide. Advertised widely by SMC, “Pay up SGC or ……Die”
Compare the Pair, does your Super fund employ Bikie Debt collectors ?
Wonder how much the bikies and CFMEU thugs got paid in cash to do the dirty work.
But APRA and BUSSQ are happy with the outcome, so all good.
What a load of poppycock. ‘Pigs at the trough’ everywhere. There are processes in place in the tax system to recover super. The problem arises from the basic ethics of the industry and recovering from bankrupt and often phoenix organisations.
If I had a cleaning business and my workers were not unionised, would I be able to get a contract to clean a BUSSQ asset?
Just curious.
Really !! bikie debt collectors ! Do they hold a commercial license ?? I doubt it ! just a pair of knuckle dusters as a convincing story
if we tried to collect the arrears for our clients we would be locked up for harassment and told the ATO does this ( occasionally ) so drop off
A absolute joke !
I’m sure the CFMEU used upfront and honest collection techniques. Some of those boys are scary and not afraid to use force, though this wouldn’t have happened in this instance of course.
This debt collection is interesting.
How many businesses were collected on?
I’d really like to know because if it was say 4, then I’d have a lot more questions to ask.