Our Bill MBA is not impressed but I am not sure Setka is very good at pulling his head in, even it suits the Labor government.
Here’s the news re the CFMEU pulling out of CBus on the basis that CBus is an investor in projects which Grocon is managing.
Building unions are poised to axe a major industry fund over its links with Grocon, with the new head of the state’s biggest construction union, John Setka, warning there was a ”very, very strong chance” they would quit Cbus.
Any move by Victorian building unions to leave Cbus would be a huge blow to the giant superannuation fund, with Mr Setka warning $5 billion to $7 billion could be withdrawn by tens of thousands of members.
Mr Setka, state secretary of the Construction, Forestry, Mining and Energy Union, said unions were prepared to cut the link with Cbus despite it being chaired by people he respected, such as former Labor premier Steve Bracks, and having on its board a string of senior union figures including ACTU president Ged Kearney.
”Our members are really dirty that a fund like Cbus, which has been virtually created by union members, has given work to an anti-union company,” he said.
”We’re not copping this stuff any more … If someone is giving money to an anti-union company that has tried to smash the trade union movement, we’ve got to send out the signal that this is what happens.”
Mr Setka added. ”We’ll fight people industrially and also fight in the boardrooms. These people can’t handle that.”
A coalition of building unions started pushing for change in the investment practices of Cbus in the wake of the Grocon dispute last August and September. That confrontation was sparked by a disagreement over the appointment of shop stewards and the wearing of union insignia.
Grocon is pursuing the CFMEU for $10.5 million. After calling for expressions of interest, the unions’ advisory panel received applications from five funds, including Cbus.
It is understood that industry fund BUSSQ is a front-runner and has been rated better than Cbus on fees, governance and on member choice. Despite its size, Cbus was also rated as offering the fewest investment choices, with nearly 100 per cent of members in the ”default” growth fund.
A final recommendation is expected by the end of April, with unions set to pass on that advice to members.
But the union campaign has attracted strong criticism, including from Labor and Workplace Relations Minister Bill Shorten.
”I do not believe that industrial relations disputes should be ever played out at the boardrooms of superannuation funds, full stop,” Mr Shorten said last November.
”What matters is the best interests of the members of the fund.”
Mr Setka hit out at the criticism: ”People like Bill Shorten that try and warn us about not playing games with super funds, as far as we’re concerned it’s our money; it’s one thing they can’t do anything about, it’s our money.”
Mr Setka revealed the national executive of the CFMEU, covering all its branches, had also backed the push.
Cbus invests in a range of funds including 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. In 2011, Grocon built a 29-level tower in Sydney for Cbus and another fund.
The level of antipathy has extended to the CFMEU rejecting financial support from Cbus at the Labour Day races on Monday, which the union sponsors. Mr Setka said unions would also target Commonwealth Bank, which owns Colonial First State.
”Any bank that supports Grocon will be a target of a union campaign,” he said.
In related news, CFMEU (Victorian branch) has been trying to bully Boral into refusing to supply Grocon. In what looks like a classic case of secondary boycott which is illegal, Rod Sims at the ACCC has shown no interest in this matter. He is busy spending all his time making sure we pay more for our supermarket purchases.
A number of subcontractors have been bullied by the CFMEU and have decided to refuse to deal with Grocon. Again, no press interest in this matter or concern on the part of regulatory agencies.
The only problem I see here is any sway the union has over where their members put their super.
If the union wants to lobby to pull out – more power to them.. as long as their individual members have the choice to go where they want. If they have half a brain, they’d be going to the fund that provides the best returns.
duncanm
15 Mar 13 at 5:30 pm
This is why you simply cannot give unions power, they are spiteful people with spiteful goals. But hey, it IS their money they can do what they want. It’s not like each worker is forced to change funds, the union can only recommend the change, workers can take the advice or not. Unless I am missing something that is.
Grocon should be given a medal for standing up to these thugs.
MattR
15 Mar 13 at 5:31 pm
If union leader Bill can’t get the union thug trash to act in their own member’s best interest what hope has he with the ALP caucus?
JamesK
15 Mar 13 at 5:39 pm
It’s pretty obvious that the govt is now trying it’s darnedest to run the union agenda and nothing else. This country has been debauched by the worst govt ever.
Pedro
15 Mar 13 at 5:40 pm
That can’t be right. People have assured me that without the ACCC, capitalism would make us all its concubine.
Infidel Tiger
15 Mar 13 at 5:42 pm
IT did you sell the Brumby?
Pickles
15 Mar 13 at 5:49 pm
I traded it for 72 virgins and a carton of beer.
I’ve got a dozen left and I’m outta beer.
Infidel Tiger
15 Mar 13 at 6:05 pm
This would make another very interesting term of reference for the Abbott government Royal Commission into Union Administration.
H B Bear
15 Mar 13 at 6:09 pm
Setka still around? I thought he’d left with all the other flying monkeys.
Paul
15 Mar 13 at 6:11 pm
Say, wasn’t Setka taking Abbott to court over some imagined defamation? A big deal was made of it in the meeja. Whatever happened to that?..
Gab
15 Mar 13 at 6:24 pm
Ha! It’s just confirmation once again that unions are acting according to the Little Red Playbook– if they aren’t emulating the Italian Mafia they seemingly are trying communist tactics all round!
God give us a PM who will regulate the lot of them similar to companies at law
Jazza
15 Mar 13 at 6:58 pm
There are growing numbers of sites now where people are advised to join this or that resident union for the sake of peace and quiet, and which stipulate where superannuation contributions will go.
This is especially so in ports and major construction projects (basically MUA and CFMEU controlled).
mareeS
15 Mar 13 at 7:40 pm
I really hope for the members that these guys haven’t put the money into the left’s pet investment schemes. Like green energy, which regularly yields minus 90% every 3 years. Also divestment from evil oil and tobacco is a recent fad.
Will there be any money left for them when they retire? Or will they be the grateful recipients of large wads of worthless CO2 emissions certificates?
Bruce
15 Mar 13 at 7:52 pm
stackja
15 Mar 13 at 8:20 pm
I am a little conflicted on Industry super. I was just going over my son’s numbers for the 6 months to 31/12. The little bugger made 10.7% on his money in the 6 months after all fees and taxes were paid.
That is phenomenal! If he can deliver that annually or frankly even half that annually – no complaints
dismissive
15 Mar 13 at 8:25 pm
Isn’t HESTA making strange and very large investments in renewables?
Dan
15 Mar 13 at 8:27 pm
Im really not sure whether this post deserves a pat on the back or a kick up the bum
industry super may be the plaything of unions
BUT my friends BUT BUT…
super is a mandated legislated thing of governments owne creation
and id rather make my own savings decisions – because due to super legisaltion we are blowing up the financial markets into a pack of cats who think they got all the cream
We have all heard of governments causing distortions in markets havent we ….because of misguided nanny statitist interventions (here let us help you save more?? .. let us help you by reducing you take home pay and forcing into a bank…0
This is SO MUCH bullshit and why you are focussing on the unions and industry funds when you should be making governments undo their bloody manadatory super BS schemes and let the individual decide for themselves how and when they will save is TOTALLY beyond me.
THis BS manadtory super is causing so much damage (unions are a flea on a fea ridden dog and government is the bigger flea)
Aliice
15 Mar 13 at 8:32 pm
Also I ran into Keatings younger brother at a dinner and I raised the issue of super and market distortions caused by government interventions and this is what the idiot said to me
“the only problem with mandatory super is there is not enough of it”
God save us all from the Keatings genius.
Aliice
15 Mar 13 at 8:38 pm
Aliice, this is one occasion where I agree with you. I think. In a nutshell, compulsory super is bullshit.
Skuter
15 Mar 13 at 8:38 pm
One other consequence of superannuation is that it forces people to borrow more than they otherwise would to fund purchases of non-financial assets (like houses) and consumer durables.
Skuter
15 Mar 13 at 8:40 pm
Skuter – it is more than bullshit. it is insidious. It is theft. The givernment makes money out of it. The financial mservices sector make good money out of it.
The average wagepayer is being blinded by the fact that they think they are saving. But they are losing – they cant pay their house off because the money is beyiond their reach (and that alone would make them move towards a satisfactory retirement0. They cant access it without extreme difficulty if they need to.
The whole super law bullshit stinks. People are capable of saving well enough for their own retirements and government who is trying to foist the cost of old age welfare on to us through their forced super savings will likely find themselves paying more welfare as super savings get robbed to the extent they do by both governments and the financial sector.
I dont neeed my hand held to save and i can make better savings decisions when these bastahrds arent docking it (my super earnings) for everything they can.
Skuter – it disgusts me. Dont even get me started.
Aliice
15 Mar 13 at 8:48 pm
Don’t get me started, Skute.
People (or, if you prefer, wukkas) should be allowed to set aside superannuation and use it to pay off a mortgage on their own home.
Yes, very conservative of me, but the safest investments are (almost) always the best.
I’m about to take over all my preserved superannuation from previous jerbs and aggregate it into one large self managed fund.
The (soviet) unions can take their investments in subsidised, invariably disastrous green wankery and shove them up their big, fat, stupid, corrupt commie backsides.
Enough.
Rabz
15 Mar 13 at 8:56 pm
We seem to agree on something for once, aalice…
Rabz
15 Mar 13 at 8:57 pm
I dont know if you are agreeing with me or not Rabz
You are on about the soviet unions (where? )
when I (and Skuter) am on about the super laws themselves) and that is about governments so pull back on your “commie union” ramblings for a minute will you? And think about things for a change?
The whole of the mandatory super laws suck (governments fault) and are doing immense damage to people’s ability to meaningfully save. Thats it in a nutshell and you cant skirt that one off to a “commie union” blame Rabz – wrong way Jose.
Try blaming who is really responsible – every fucking government since that dipstick egotist wanker Keating who thought only he had the grand plan for Australia’s business future (yeah right – no bloody wrong!!).
Aliice
15 Mar 13 at 9:04 pm
Alomost Rabz
Aliice
15 Mar 13 at 9:07 pm
Rabz – you are doing the right thing through at least getting it out of other people’s hands and into your own but such are the laws it will cost a couple of grand a year to get an accountant to do the financials on the SMSF…
and that is crap too, should be able to do your own financials.
Aliice
15 Mar 13 at 9:09 pm
This mouth-breathing knuckle-dragger has no clue about the meaning of “fiduciary duty”.
Leigh Lowe
15 Mar 13 at 9:23 pm
dismissive… check out the returns for the last few years… won’t be as good.
My bet is his money is mostly in shares – I know my Australian share portion of super has done similar things due to the market recovery after the GFC.
duncanm
15 Mar 13 at 9:25 pm
aalice – it’s of no consequence.
If you can’t comprehend the fact that unionists are little more than soviet style gangsters, then I ain’t going to be bothered explaining that fact to you.
And yes, gubberment meddling in wukkas’ superannuation sucks, but they aren’t going to be slaughtering that cash cow any time soon.
As a very wise friend of mine once opined almost two decades ago (he was a funds analyst who made me a shedload of moolah on a highly speculative short term stock portfolio back around the turn of the century):
End of.
Rabz
15 Mar 13 at 9:28 pm
When it comes to super rabz the biggest gangsters are government and financial services sector. unions can be gangsters but sometimes just sometimes its the companies who act like gangsters and the unions are right whatever the issue is. It isnt always worng or right here and yes unions can act like gangsters and tieves and criminals – look at those creeps in charge of the HSU (bottom feeding scum).
I agree with final comment from wise friend completely….Rabz which is why the laws themselves should be abolished. Mandatory super is deeply and fundamentally flawed conceptually and in practice.
so we do agree Rabz.
Aliice
15 Mar 13 at 9:36 pm
so sorry spelling is garbage but Im fading fast now…
Aliice
15 Mar 13 at 9:37 pm
For a change.
You might get a tune at this rate…
Rabz
15 Mar 13 at 9:38 pm
Super was “invented” by Labor to ensure blue collar workers who could or would never have “hope-of-ever-saving ” for their future be brainwashed to thinking this was the only way to save for that “golden retirement” courtesy of their employers. Has anyone ever tried to convince the banks or any other financial institution that “your super” is an asset and should be regarded as equity when trying to invest especially when you have put extra of your own money in? Yeah right…the answer is “sorry there is no guarantee of that money”….in other clear words…ITS NOT YOUR MONEY…KEEP WISHING! Superannuation is the biggest con job perpetrated on all Australians.
EJ
15 Mar 13 at 10:06 pm
Aliice, super was bought in by, let’s be blunt about it, a union-dominated administration. The coalition won’t do shit about getting rid of it because the union’s would ‘mobilise’…super is a bastard union spawn and is also the source of quite a few cushy part-time sinecures for the union maaaates. It also gives the union-ALP cartel access to a big pool of savings to burn through – that is the latest thing – getting access to our savings for ‘nation building’ projects, like desalination plants, for example (but not dams, we can’t have a fucking dam now, can we?). All of a sudden there is a cheap malleable source of funds that don’t need to come from the banking system or by raising equity from investors…it all comes from the maaaates…
Skuter
15 Mar 13 at 10:07 pm
It’s not like each worker is forced to change funds, the union can only recommend the change, workers can take the advice or not. Unless I am missing something that is.
Obviously you do not work on CFMEU sites.
They tell you where to put your super, lunchbox and toolbox.
Strange accidents happen to those who speak out against this lawless bunch of bastards.
Compulsory unionism is accepted because other than Grocon building companies find it easier than obeying the law. Grocon only grew testes recently.
what planet am I on?
15 Mar 13 at 10:09 pm
Skuter you are wrong – super has been fawned over by every successive government since it was brought in. Most of the unions have been kneecapped anyway. Super is a spawn of government not unions (unions are just stupid enough to think super is a good idea) and is getting more and more onerous.
Aliice
15 Mar 13 at 10:22 pm
What ba massive waste of money the silly desal plant was.
Aliice
15 Mar 13 at 10:22 pm
EJK
Yes – super is a con Cant even use it as security to invest.
Aliice
15 Mar 13 at 10:24 pm
Rabz – give me a tune!! We do agree on music!
But I think I will be asleep – soon…my eyes are dim I cannot see etc. Tune soon Rabz!
Aliice
15 Mar 13 at 10:27 pm
Grocon should just go out of business, walk away and show the CFMEU just how much the little man depends on big business to keep food on the table.
perturbed
15 Mar 13 at 10:32 pm
@ Rabz – the unions control it? They may have originally – and still have pernicious influence in industry funds – but there is a similarly insidious lobby of former life offices and their commission staff, now grandly styled the Financial Services Sector and Financial Planners. The latter are one of the most remarkable occupational licensing rorts of the last decade, which practically excludes your ordinary accountant or lawyer from providing advice on investment.
Pyrmonter
15 Mar 13 at 10:45 pm
Even if the union force you to use cbus they wouldn’t know if you then transferred it to another fund or your own.
Mark
15 Mar 13 at 11:17 pm
Michael Williamson was on the board of mine…
Once we reach a certain amount we are moving to SMSF.
Mark
15 Mar 13 at 11:18 pm
Now the real aims of Fabian Labor’s foray into and almost complete capture of superannuation begin to emerge.
['Superannuation funds are sharpening their focus on ethical investing '], and so they divest the funds of News Corp holdings.
What a sick joke considering the Super Funds’ domination by the ‘so ethical’ union movement—and this move against NewsCorp , like the one inspired by Grocon’s refusal to toe the union line— is orchestrated by another of Julia Gillard’s former lovers, Michael O’Connor, whose brother has recently been appointed by her to the immigration portfolio.
But not to worry—as your member’s super goes down in value , the remunerations of the union bosses playing with the trillions of dollars in the funds will inexorably rise—even while they’re ‘citing grave concerns over bloated executive salaries and poor governance’ in News Corp..
http://www.crikey.com.au/2013/01/10/super-fund-takes-ruperts-advice-sells-out-of-news-corp/
They say News Corp needs to have “Open, transparent, representative governance”, in “the interests of minority shareholders”, don’t you know—kind of like Michael Williamson’s and Craig Thomson’s ‘care and compassion’ for the interests of the low-paid HSU workers—and Gillard’s former lover’s deep empathy and fidelity to the ordinary AWU members, as he ran his alleged fraud and money-laundering operation with the ‘instruments’ set up by Gillard herself.
This is the real reason for the Keating superannuation cash grab, IMO—personal enrichment of selected union comrades —-the enormous power that comes with trillions of dollars of other people’s money to play with—- and their long time goal of ‘transforming Australia’.
They have built-in booby-traps for the workers too.
They’ve raised $176million from ordinary Australians so far by tricking them into exceeding the contributions cap and thereafter having to pay tax at a rate of 93% on the excess contributions.
If caught in the trap, Australian workers can’t rectify their situation—they just have to pay up!
Needless to say, Labor refuses to fix it. The Coalition will legislate to allow rectification, where the cap was exceeded inadvertently.
Labor just wants the loot —-to tart up its ugly and embarrassing bottom line.
We’re probably going to see the Labor Super bosses target fossil fuel industries soon if they can do it without shooting themselves in the foot.
They’ll probably spare the gas industries, because they know there are no renewables that will replace them.
And Bruce @ 7.52pm—I think that’s exactly where the money’s going—elusive, mythical renewable energy sink holes—and people like Labor comrade Rod Sims and Labor’s MSM will just let it happen.
[ The decision by industry superannuation fund First Super to sell its stake in News Corp was made due to the big media company’s failure to improve its corporate governance, according to First Super’s co-chairman Michael O’Connor.
The lack of independence at News Corp is a threat to shareholders, according to O’Connor who is also national secretary of the Construction, Forestry, Mining and Energy Union.
‘Some of the biggest names in business are in the firing line’, chirps an approving MSM journalist .
truth
16 Mar 13 at 12:58 am
Here where I am, there is a thing called a retirement savings plan, very similar to Super. Again, it is compulsory. My investment advisor keeps trying to meet with me to optimise it. I told him not to bother – it will never be drawn, as I intend to die working.
perturbed
16 Mar 13 at 5:17 am
The very idea of ‘banning’ any free market actions is by definition a reduction in competition. The ACCC can only destroy competition – which is its purpose.
The ACCC is used by powerful companies to push out compeditors. Just look at the banking industry. There was competition against the big banks against the little guys. The little guys had low interest rates by high exit fees. So the big banks lobbied the ACCC and government to ban them.
The ACCC doesn’t care about 3rd line forcing etc. It cares only about what things it can ban our-right.
mundi
16 Mar 13 at 1:01 pm
In defence of compulsory superannuation, the “compulsory” component rests with the employer only, not the employee. All employers pay their 9%, not all employees are obliged to contribute anything. I have worked for numerous employers (State and Federal Government & private industry), in some jobs I was obliged to contribute to the fund, and other times I was under no obligation to contribute.
I have no desire to see compulsory superannuation removed. Why should I object to someone (my employer) paying the equivalent of 9% of my salary into a long-term savings account for my benefit?
old bloke
16 Mar 13 at 3:52 pm
Aliice, what you say is true, but it works both ways. Your superannuation fund is an arms-length investment. You can’t use it as collateral to borrow, but at the same time your creditors can’t touch it.
old bloke
16 Mar 13 at 3:59 pm
So sayeth John Setka.
He is wrong. It’s not “our” (CFMEU) money, it’s the fund member’s money which the superannuation fund holds on TRUST.
Mr. Setka should familiarise himself with Trustee’s responsibilities and liabilities under law. A trustee is personally liable to ensure the funds he is entrusted with are used to the best advantage of the fund’s members. A trustee’s liability is not limited as, for example, a director of a limited liability corporation, a trustee is PERSONALLY liable to ensure the best outcomes for the fund’s members.
If fund member found the the trustees of their fund were making poor investment decisions with their money, the fund members could claim against the trustees for redress, and their claim would include the trustee’s personal estate.
old bloke
16 Mar 13 at 4:34 pm
ALP super funds like wind power so reports of wind farm illness are reported in Fairfax as:
stackja
16 Mar 13 at 8:10 pm