Industry funds delivered $742,091 to ACTU

Australia’s peak trade union body, the Australian Council of Trade Unions (ACTU), has confirmed receiving $742,091 from industry superannuation funds in the form of both sponsorship and directors’ fees.

However, in doing so, it has made clear that the information on what it receives from the funds has always been publicly available via its filings to the Australian Electoral Commission (AEC) and, where directors’ fees are concerned, the money is a reflection of “high-quality work”.

The ACTU has also argued that the services it provides to members of superannuation funds “are of excellent value”.

The ACTU’s robust response has come at the same time as the two largest superannuation industry lobby groups, the Super Members Council and the Association of Superannuation Funds of Australia (ASFA) have defended their costs and the value they deliver to members.

Answering questions on notice as part of the Senate Economics Legislation Committee inquiry into the Objective of Superannuation legislation, the ACTU emphasised the value for money being achieved.

“Payment for directors’ fees is a normal compensation for the high-quality work and time required by directors for their role and is often confused with payments for services rendered. ACTU employees do not keep these fees personally, they elect the ACTU to receive payments to partially compensate for the time taken out of their full-time roles at the ACTU,” it said.

“The services we provide for members of superannuation funds are of excellent value. We conduct marketing and promotion at events and forums where working people and union members discuss their workplace rights, as well as the promotion of superannuation funds and fund services to assist members to make informed choices and to engage with their superannuation savings. This clearly aligns with members’ interests not only to join and remain in high quality superannuation funds, but in the funds’ interest in growing to reduce costs for members and attain the benefits of scale.”

“We remain the largest member organisation in the country with greater membership than any AFL or NRL club. We have more engagement with working people in their workplaces than any organisation in the country, and via marketing channels. We possess unique and extensive expertise in distributing information to working people about their rights and are trusted by millions of workers as a source of advice and support in their working and retirement lives.”

“We are extremely selective about our sponsorships and only enter into sponsorship agreements which deliver benefits to working people. This amplifies their value, yet they come at a marketing cost far less than other activities and sponsorships. We believe they are of excellent value for funds. The alignment of values between the union movement and profit-to-member superannuation funds means that these sponsorships are strong commercial partnerships that provide union members with information they want to receive, which improves their working and retirement lives.”