Government triples union ‘slush fund’ with extra $60m in budget

A union ‘slush fund’ scored an extra $60 million in the federal budget this week, in what has been ­labelled a case of ‘blatant pork-barrelling’.

A union “slush fund” scored an extra $60 million in the federal budget this week in what has been ­labelled a case of “blatant pork-barrelling”.

Curiously, despite the bump for the fund being the single largest spending item in Workplace Relations Minister Tony Burke’s portfolio, his budget night media release did not mention it.

The Productivity, Education and Training (PET) fund, which was established in 2022 as an outcome of the Jobs and Skills Summit, is the revival of a Julia Gillard-era entity, which in 2013 gave the ACTU an $11m grant to promote productive workplace relations.

In its new form the fund initially received $8.9m in October 2022 for three years, which was topped up by $20m in May last year.

Tuesday’s budget has quietly added an extra $60m to the fund, bringing the total allocated to almost $90m since its ­creation — and effectively tripling its size.

Workplace Relations Minister Tony Burke during Question Time at Parliament House. Picture: Martin Ollman

Unlike its previous incarnation, which was a union-only affair, employer organisations are also eligible for PET funds, which have been made on the basis of a 50-50 split between the ACTU and employer ­organisations.

According to bureaucrats later called to justify the expenditure at a Senate Estimate hearing, the purpose of the fund is to provide money “to support employer representatives and unions to better engage with the government’s law reform process”.

Documents obtained under Freedom of Information show that since its revival the fund has given the ACTU $13.8m over three years, to be paid in annual lump sums.

Initial funding to the ACTU was part of a non-competitive, invitation-only allocation in which four groups — the Australian Chamber of Commerce and Industry, the Australian Industry Group, the Council of Small Business Organisations Australia and The Business Council of Australia — were ­offered money, with half going to the union movement.

The Business Council of Australia declined to receive any money.

A senior industry association source said the government was effectively paying unions to do their basic job.

Opposition workplace relations spokeswoman Senator Michaelia Cash. Picture: Martin Ollman

“It actually pays them to negotiate with the government,” the source said.

“It’s blatant pork-barrelling for the unions, which they will then go and spend an equivalent amount for Labor at the next election.”

Opposition workplace relations spokeswoman Senator Michaelia Cash also slammed the increase as a blatant example of pork-barrelling.

“It is an absolute disgrace that this union slush fund has been tripled in the budget while ordinary Australians are suffering under the Albanese government’s cost-of-living crisis,” she said.

“It would be laughable if it wasn’t so disturbing.

“The Albanese government will do absolutely anything to look after their union ­paymasters.”

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