30 August 2000

Workers, not Unions, Should Control Super

Assistant Treasurer, Senator Rod Kemp, today condemned reported comments by ACTU President Sharan Burrow suggesting a role for trade unions in directing superannuation investments.

Sharan Burrow boasted in her speech to the Sydney Institute that:

"Employee representatives, whether elected or appointed by unions, make up half the boards of funds with almost half of total superannuation assets – around $200 billion."

"The bullying approach of the ACTU should have no place in dictating superannuation investment policy in this country" Senator Kemp said.

"Any attempt at direction will be contrary to the responsibility of trustees to act in the best interest of their members. Trustees will rightly resist any attempt by the ACTU to pursue a political agenda at the expense of retirement income security for Australian workers.

"Sharan Burrow should be supporting choice of superannuation fund. This would enable workers to choose a fund which suits their particular needs.

"The Sharan Burrow approach could jeopardise the returns of superannuation funds and in turn deliver lower retirement incomes to Australian workers," Senator Kemp said.

"Is it any wonder that union membership continues to decline when the ACTU is so clearly out of step with the needs of Australian workers?"

 

CANBERRA
30 August, 2000
Media contact: Richard Allsop (02) 6277 7360