SENIOR Labor minister Bill Shorten has attacked a push by building unions to target an industry fund with links to Grocon, saying industrial disputes should not be used to try to influence superannuation investments.
The comments from Mr Shorten, the Workplace Relations Minister, come as a coalition of building unions will meet Cbus chief executive David Atkin on Thursday to push for changes in how Cbus makes its investments.
Electrical Trades Union assistant secretary Troy Gray said the meeting with Mr Atkin would push for a new code of conduct to ensure that Cbus only backed firms that respected worker rights. He said the discussion would not be limited to Grocon.
"Our members don't expect that their hard-earned entitlements will fund these rogue builders," he said.
The $18 billion fund has almost 700,000 members and significant investments in the construction sector.
Since Fairfax Media revealed on Monday the push to target Cbus and its chairman, former Labor premier Steve Bracks, there has been little comment from the fund. A Cbus spokesman would not comment on the meeting or why Mr Bracks was apparently not attending.
Mr Shorten, a former union official and director with Australian Super, attacked the push by unions.
"I do not believe that industrial relations disputes should be ever played out at the boardrooms of superannuation funds, full stop," he said. "What matters is the best interests of the members of the fund."
The push by unions is delicate, with almost half the Cbus board current union members, including ACTU president Ged Kearney. The remainder are employer representatives as well as the independent director, former federal Labor treasurer John Dawkins, and the chairman, Mr Bracks.
Premier Ted Baillieu also attacked the union push and said it was outrageous.
Mr Shorten said there was no evidence that Cbus had been influenced by unions. "But what I know is that the Cbus fund, to the best of my knowledge, makes its decisions based on investment returns, and best interests of members."
Cbus invests in a range of funds such as Colonial First State, which has a strong relationship with Grocon and is using it for building work on a $430 million redevelopment of 5 Martin Place in Sydney. Last year Grocon built a 29-level tower in Sydney for Cbus and another fund.
Mr Gray rejected Mr Shorten's comments and said it was not part of an industrial strategy.
"Quite the contrary, we are doing exactly what progressive unions should do, represent their members' concerns," he said.
Grocon is suing the Construction, Forestry, Mining and Energy Union for $10.5 million after a bitter dispute in August and September that paralysed part of central Melbourne. Grocon has told the Supreme Court the picket line was a deliberate attempt to intimidate its staff.
bschneiders@theage.com.au
Frequently Asked Questions about this Article…
What is the dispute between building unions and the Cbus super fund about?
Building unions are pushing Cbus to change how it makes investments by introducing a new code of conduct so the fund only backs firms that respect worker rights. The campaign targets companies with links to Grocon but, according to union spokespeople, is not limited to that firm.
Who is Bill Shorten and what did he say about unions trying to influence Cbus investments?
Bill Shorten, the Workplace Relations Minister and former union official, criticised the unions’ push, saying industrial relations disputes should not be played out in superannuation boardrooms. He stressed that Cbus should act in the best interests of its members and said there was no evidence the fund had been unduly influenced by unions.
How large is the Cbus superannuation fund and who sits on its board?
Cbus is an $18 billion industry super fund with almost 700,000 members. About half of its board are current union members (including ACTU president Ged Kearney), with the remainder made up of employer representatives, an independent director John Dawkins, and the chairman Steve Bracks.
How is Grocon connected to Cbus and its investments?
Grocon has business links with funds related to Cbus. Colonial First State, a fund in which Cbus invests, has a strong relationship with Grocon and is using the company for building work on a $430 million redevelopment at 5 Martin Place in Sydney. Grocon also built a 29-level tower in Sydney last year for Cbus and another fund.
What are unions asking Cbus chief executive David Atkin to do at their meeting?
Unions meeting with Cbus CEO David Atkin want a new code of conduct to ensure Cbus backs firms that respect worker rights. Electrical Trades Union assistant secretary Troy Gray said the meeting would press for those changes and that members shouldn’t have their entitlements used to fund ‘rogue builders.’
Has Cbus or its chairman Steve Bracks publicly responded to the union campaign?
Since the campaign was revealed, there has been little comment from the fund. A Cbus spokesman declined to comment on the meeting with unions or why chairman Steve Bracks was apparently not attending.
What legal action involves Grocon following the industrial dispute mentioned in the article?
Grocon is suing the Construction, Forestry, Mining and Energy Union (CFMEU) for $10.5 million over a bitter dispute in August and September that paralysed part of central Melbourne. Grocon has told the Supreme Court the picket line was a deliberate attempt to intimidate its staff.
What does this union push mean for everyday Cbus members and investors?
The dispute raises governance and member‑interest questions for everyday investors: unions argue the fund should avoid investing in firms that breach worker rights, while government figures like Bill Shorten emphasise that investment decisions should focus on returns and members’ best interests. The article highlights the tension but does not report any change to Cbus investment policy at this stage.
Call 1300 880 160
Start a chat
Schedule a call
