Regular threadster “.” sent though this guest post.
While browsing the library I found a book by John Leard – Australia, the Worst is Yet to Come. At pg. 74-75 ‘The ACTU’s Real Motives’
There is grave doubt whether the whole thrust of the ACTU’s Superannuation deal is really in the interests of the members whose funds they will be administering.
It is interesting to quote from a paper delivered to the 1981 ALP Special National Conference. The following was a statement made in regard to Superannuation:
There are a number of issues raised by the extension of Superannuation Schemes. Ultimately these questions include the examination of the investment strategies of
those funds and their implications for industrial relations, employment and structural changes in the economy.
Conflicts may arise from those investment decisions. For example, investment in highly profitable areas will maximise the member’s retirement benefits, but the social
consequences of that investment may create a conflict.
Obvious examples are investment in Uranium mining (pre three mines policy, methinks!) or firms which operate in South Africa.
What we must recognise at this early stage of union involvement in the Superannuation issues is that control over the funds will provide unions and
governments with considerable financial leverage. That leverage can be used to advance the cause of Socialism in Australia.
There you have it.
The real objective of these funds is not the welfare of the Australian people, nor the maximisation of returns for those who have entrusted their funds (albeit compulsorily) to union-controlled schemes, but to further the cause of Socialism in Australia and to give the unions and the Government increased political leverage.
If the average Australian will buy this, he has rocks in his head!
We all know that in a collective bargaining agreement, negotiations will be dominated by the employer and the union. The union will not give up their position in terms of bargaining power, nor will they allow individual agreements – or choice varying from their objectives. Unions nearly explicitly exist to disadvantage non members – let alone pricing marginal workers out of jobs and robbing their own rank and file blind.
Essentially what we have observed is that the unions helped to create superannuation – whether we are union members or not or want to invest in superannuation- but to advance socialism in Australia and not to “run funds only for the benefit of their members”.
This was predicted by John Leard over 26 years ago and stated as a goal of the ALP over 31 years ago.