BUILDING unions are moving to sever their relationship with a major industry superannuation fund that has links to Grocon.
In a push that could cost the Cbus fund billions of investment dollars and tens of thousands of members, a coalition of building unions representing more than 80,000 Victorian workers will this weekend advertise in newspapers.
They will call for expressions of interest for replacement superannuation funds to Cbus, chaired by former Victorian premier Steve Bracks and whose board includes several Labor and union heavyweights.
The push, revealed by Fairfax Media last week, comes amid union anger that Cbus invests in other funds that use Grocon for their building work.
If Cbus acceded to the union push it could imperil Grocon's chances of winning work on lucrative projects.
Unions accuse Grocon of not respecting workers' rights a claim the builder rejects as part of the recent bitter dispute and blockade that shut down part of central Melbourne for more than a week.
Electrical Trades Union assistant secretary Troy Gray said Cbus, which has $18 billion in funds and nearly 700,000 members, had failed to adequately respond to its concerns about its investment practices. Mr Gray said Mr Bracks had not turned up to a meeting unions called with Cbus last week and unions were "extremely disappointed" with its approach.
Building unions wanted six of their key concerns addressed, including a review of current investment practices, new minimum standards so builders respect freedom of association and safety and annual meetings to allow "genuine consultation" with members.
Mr Gray said the response from Cbus had left the unions with "no choice but to see if there's other schemes out there".
He said while the campaign was concentrated in Victoria, there was support from other unions around Australia.
Construction, Forestry, Mining and Energy Union state secretary Bill Oliver said the group was serious about seeking a new fund that could cover tens of thousands of its members.
"It's not about Grocon, it's about finding a fund that invests our members money ethically," he said.
A Cbus spokesman offered little comment but said the fund continued to "talk to all our stakeholders", including unions. A spokeswoman for Grocon declined to comment.
As part of the expression of interest, the building unions will ask for funds that have a commitment to "responsible investment practices". The push was condemned by Premier Ted Baillieu, while Labor's federal Workplace Relations Minister Bill Shorten said he did not believe "industrial relations disputes should be ever played out at the boardrooms of superannuation funds".
Cbus is in a politically delicate position, with nearly half its board union leaders, including the CFMEU's Dave Noonan and ACTU president Ged Kearney.
Mr Bracks is appointed by the ACTU, while independent director John Dawkins is a former federal Labor treasurer.
Cbus invests in a number 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 in Sydney. Last year, Grocon built a 29-level tower in Sydney for Cbus and another fund.
The Grocon dispute concerned the appointment of shop stewards and the right to display union paraphernalia on sites.
bschneiders@theage.com.au
Frequently Asked Questions about this Article…
What is the dispute between building unions and the Cbus superannuation fund about?
Building unions are upset that Cbus invests in funds that use Grocon for building work. They say Grocon has not respected workers' rights after a bitter dispute and blockade in Melbourne, and they want Cbus to change its investment practices or face a campaign to find replacement funds for members.
Which unions and union leaders are involved in the campaign against Cbus and Grocon?
A coalition of building unions representing more than 80,000 Victorian workers is leading the push. Named figures in the article include Electrical Trades Union assistant secretary Troy Gray, CFMEU leader Dave Noonan, ACTU president Ged Kearney and CFMEU‑aligned union state secretary Bill Oliver.
What actions are the unions taking to try to leave Cbus or change its behaviour?
The unions will advertise for expressions of interest for replacement superannuation funds, asking other schemes to step forward. They want to recruit tens of thousands of members away from Cbus if their concerns about investment practices and builder standards aren’t addressed.
How large is Cbus and who runs its board?
Cbus is an industry superannuation fund with about $18 billion in funds and nearly 700,000 members. Its board includes several Labor and union representatives; it is chaired by former Victorian premier Steve Bracks, and has independent directors such as John Dawkins.
What changes are the unions asking Cbus to make to its investment practices?
Unions want six key concerns addressed, including a review of current investment practices, new minimum standards so builders respect freedom of association and safety, and annual meetings to allow genuine consultation with members. They also seek commitment to responsible and ethical investment.
Could the unions’ campaign affect Grocon’s ability to win work?
Yes. The unions say if Cbus withdrew or shifted investments it could imperil Grocon’s chances of winning lucrative projects. The article notes Cbus has invested in funds such as Colonial First State, which uses Grocon on a $430 million redevelopment, and Grocon previously built a 29‑level tower for Cbus.
How have Cbus, Grocon and politicians responded to the dispute?
A Cbus spokesman said the fund continues to talk to all stakeholders, including unions. Grocon declined to comment. Politically, Premier Ted Baillieu condemned the unions’ push, while federal Workplace Relations Minister Bill Shorten said industrial disputes shouldn’t be played out in superannuation boardrooms.
What are unions looking for in a replacement superannuation fund?
The unions say they want a replacement fund that invests members’ money ethically, with a clear commitment to responsible investment practices and safeguards that ensure builders respect workers’ rights and safety.
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