Rail union’s $690,000 in donations to NSW Labor slammed amid train chaos

The decade of funding has added an extra dimension to negotiations between the government and the union, critics say.

NSW Labor received almost $690,000 over the last decade from the rail union it is currently locked in bitter conflict with, as critics claim the funding pipeline presents a “conflict of interest” adding an extra dimension to negotiations in the wake of rail chaos in recent weeks.

New research from the Menzies Research Centre shows in 2022-2023 the Rail, Tram and Bus Union (RTBU) gave the NSW Labor Party $77,068, with $461,928 paid over five years including affiliation fees and donations.

The centre’s analysis shows in the past decade the union has handed NSW Labor $689,254, with executive director David Hughes saying “it is no wonder that the union and government are yet to reach a deal with such a blatant conflict of interest”.

“We were shocked to discover that the RTBU have donated over $680,000 to the NSW Labor Party over the last decade.

“The fact that the union have helped fund the Labor Party machine creates an extra dimension to the negotiations and is a key reason why the Union are refusing to sign up to a deal. It muddies the water in what should be professional and objective negotiations.”

A NSW Government spokesman fired back at the claims, pointing to the recent hostilities with the union which will be heard in the Fair Work Commission on Wednesday.

“This is a ridiculous assertion from a Liberal think tank,” he said.

Crowds of passengers packed onto the platform waiting for delayed trains at Central Station last week. Photographer: Ted Lamb

“It would be a different story if the NSW Government had given in to rail unions but not only have we refused to give in to these completely unreasonable wage demands, we have taken significant legal action against them to protect commuters.

“We have always said we will put the taxpayers of NSW first and fight for them, and that is exactly what we are doing.”

The RTBU announced in December it would suspend payments to NSW Labor amid their ongoing brawl over a new pay deal.

Research by the centre also showed State Super STC – which counts the Police Superannuation Scheme among the funds managed in the scheme – paid $28,560 across 2022/2023 to the RTBU, with $361,698 paid towards the union over the last decade.

Liberal Senator Andrew Bragg said the payments showed “the state’s being held to ransom by unions – and it’s being funded by the people’s super”.

Premier Chris Minns has been critical of the union, despite consistent payments to his party. Picture: NewsWire / John Appleyard

“The super funds and the unions are really only interested in feathering their own nests and as the money trail shows, they’re becoming tycoons at the expense of the public,” he said.

A spokeswoman for State Super said directors were remunerated for sitting on the board, with former RTBU NSW branch secretary Alex Claassens sitting on the board until late 2024.

“From the records that are available, State Super paid Mr Claassens’ Board fees directly to him and has not made any donations to the RBTU,” she said.

It’s understood union members sitting as directors often donate any payments back to the union.

The RTBU declined to comment.