Kmart employees forced to join industry super fund

Discussion in 'Superannuation, SMSF & Personal Insurance' started by JohnPropChat, 12th Mar, 2019.

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  1. JohnPropChat

    JohnPropChat Well-Known Member

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    https://www.google.com/search?clien...+employees+forced+to+join+industry+super+fund

    Almost 32,000 Kmart employees, mostly young and casual, will be locked into using retail industry super fund REST as part of a controversial new union agreement.

    The retailer and the Shop Distributive and Allied Employees Association have backed an enterprise agreement clause which forces all employees to use REST even if they already have a fund or want to switch, despite criticism it breaches freedom of association.

    The agreement marks Kmart as the only major retailer to maintain the requirement after others such as Coles and Woolworths scrapped it and opened up super fund choice for their employees.

    REST, which has performed below other large funds in recent years, has the most inactive accounts of any industry fund, some 496,494 as of 2018, or about a quarter of its 2 million accounts.
     
  2. JohnPropChat

    JohnPropChat Well-Known Member

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    What a protectionist move by ALP and their union buds. Still better than retail funds but I thought the days of forced superfunds are over.
     
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  3. Joynz

    Joynz Well-Known Member

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    Note: the article goes on to say:

    Rival union the Retail and Fast Food Workers Union is challenging the agreement on grounds the clause leaves workers worse off than the award and that workers should choose their own industry fund.

    "Kmart's the only employer who's refusing a form of choice ... that's unacceptable," RAFFWU secretary Josh Cullinan said.

    "If someone is working in their main job as a teacher, is participating in a state super plan and is then required on their casual shifts to join REST, pay admin fees and have insurance products, over time that will diminish their retirement incomes. We think that's an archaic system."
     
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  4. D.T.

    D.T. Specialist Property Manager Business Member

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    Why can't we just abolish unions ?
     
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  5. Shogun

    Shogun Well-Known Member

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    I used to share this view. Sadly they are a necessary evil. Too many large companies exploit workers. Unions need to clean there act up so that workers rights are there main goal not some other hidden agenda.
     
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  6. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    It's a question of balance.

    I'm no fan of unions, quite the opposite, but without them a lot of workers would be treated very badly. On the other hand, when they have too much power, the unions exploit employers and in some cases their own members.
     
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  7. kierank

    kierank Well-Known Member

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    Their agenda is NOT that hidden:

    Do whatever it takes to get our ALP cronies into government and then screw the country for our own benefit :eek:
     
  8. JohnPropChat

    JohnPropChat Well-Known Member

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    Unions went from protecting employees and representing their interests to protectionist attitudes serving their own self interests. Very anti free-market.
     
  9. MRO

    MRO Well-Known Member

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    The worst ever super fund to deal with is CBUS. These cowboys require employers to sign up to be able to pay into the fund for their employees. Part of the sign up process requires the employer to agree to monthly payments rather than the statutory requirement of quarterly. When the employer ignores this, CBUS constantly send monthly demand notices I dont know why this is even legal.
     
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  10. Scott No Mates

    Scott No Mates Well-Known Member

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    Annoying, yes. In the interests of employees, yes also. If you give an employer 3 months to forward super as per the legislation, most will comply. In the building industry where phoenixing is common place, companies going broke is just as common, workers are often left in the lurch with their contributions due to the low levels of computer literacy, lower skill levels and the lack of financial astuteness.

    They are one of the few industry funds to get this right.

    Your wages attract the SGC contribution when you get paid, why should you have to wait up to 3 months for the contributions to hit your super account? This is much better situation to take advantage of any dollar cost averaging with your contributions.

    I see my voluntary contributions are transferred monthly to my fund but I have to wait months for the SGC to get credited.
     
  11. The Y-man

    The Y-man Moderator Staff Member

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    I must say I was/am a huge beneficiary of unionism in my working life ~ so it would be completely hypocritical of me to complain!

    When I got a package out of my previous role, I had locked into my employment contract courtesy of the EBA, 4 weeks to the year (uncapped) of redundancy. Employees on clock cards also got unused sick leave accrued for the life of their employment paid out too (many had been there 20 ~30 years - no one took sickies unless it was dire!! We sometimes had to send them home because they would turn up sick), as well as re-employment assistance benefits if they were over a certain age.

    Needless to say there were more sadder faces among those who had to stay. Especially considering in the new non-EBA environment going forward, employees were required to re-apply for their positions, on new contracts that paid only 2 weeks redundancy per year of service (non-retrospective), capped to 10 weeks.

    All new employees, were on the 2 weeks to the year contract (which is common out there anyway) with the 10 year cap. Personally, I think this was insanity, as the reason we had so many loyal staff was the benefits on offer. Now, people come and go willy nilly, and no one would be incentivised to stay beyond 5 years.

    The Y-man
     
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  12. MRO

    MRO Well-Known Member

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    I agree with the philosophy but this has not been legislated yet. I would like to see that.

    However I dont like to see union based funds over stepping the law and trying to intimidate people to pay what they are not legally required to pay. They should spend there efforts trying to change legislation rather than their current under handed approach.
     
  13. Scott No Mates

    Scott No Mates Well-Known Member

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    Unfortunately, that requires effort rather than muscle. They can't go on strike and coerce the government into changing legislation whereas they can muster up some rabble to walk down George St or Swanston Street holding placards.

    From what I had read previously, government was looking to water down control on union funds by having independents on their boards making them less competitive rather than more so (pandering to the retail funds).
     
  14. HUGH72

    HUGH72 Well-Known Member

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    I despise the TWU and CMFEU but are a member of a politically non aligned association which only looks after it's member's interests yet I nearly always vote Liberal.

    Unions have their place to keep big business honest but the attack dog needs to be kept on it's leash otherwise it will bite.
     
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  15. Joynz

    Joynz Well-Known Member

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    Because it was unions who started the battle to get equal pay for women.

    These days people think they are equal around the bargaining table. It’s usually not true.

    Because unions try to keep workers safe and alive when employers just want to cut costs and risk lives.

    No one needs the union until you need them - and then sometimes it’s too late.

    Tell a family whose father doesn’t come home from work due to an industrial accident that they don’t need unions...
     
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  16. Joynz

    Joynz Well-Known Member

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    Not my union.
     
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  17. Joynz

    Joynz Well-Known Member

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    Are you in construction management?
     
  18. Joynz

    Joynz Well-Known Member

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    How are they overstepping the law in this case? Which law?
     
  19. MRO

    MRO Well-Known Member

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    Super is paid quarterly - no requirement to pay monthly. Super for employers

    No. I have worked in various industries,unfortunately some employees have provided CBUS as their employee super fund that we have had to pay into.
     
  20. JohnPropChat

    JohnPropChat Well-Known Member

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    Apologies, I should have said some unions.