Unions grow a $500m money tree from other sources, and have funnelled cash to Labor

Unions have pocketed a ­stunning half a billion dollars from money-making schemes outside of their member fees, with a new study showing how the organisations have become a cash cow funnelling money to Labor.

Unions have pocketed a ­stunning half a billion dollars from money-making schemes outside of their member fees, with a new study showing how the organisations have become a cash cow funnelling money to Labor.

The research by the Menzies Research Centre shows unions raked in $528.7m over the past two decades from worker ­entitlement funds, training schemes and payments from industry super funds.

That is despite union membership plummeting since the 1970s – with just 13 per cent of the workforce unionised today compared to 50 per cent in 1976 and the current figure at just 7.9 per cent for private-­sector workers.

The report spells out how unions have also funnelled money to Labor, with $40m ­directly donated to the party for the past three federal elections, not including the current campaign.

Menzies Research Centre executive director David Hughes said: “Australia’s big unions are now run like corporations”.

“Despite declining union membership, our biggest unions have been able to grow exponentially through secret deals with superannuationfunds and worker entitlement funds,” he said.

“Many of the founders of these unions would be horrified that these unions have been corporatised.

“It’s often about chasing these revenue streams and often these revenue streams are detached from their core business – which is protecting our most vulnerable workers.”

The figures were pulled together following months of analysis of financial statements from unions, super funds, industry training organisations and entitlement funds.

“Never in a million years did we think we’d get to a figure of a half a billion dollars,” ­Mr Hughes said.

David Hughes, executive director of the Menzies Research Centre, which conducted the research into the financial base of Australia’s union movement.

Australian Council of Trade Unions secretary Sally McManus disputed the numbers, claiming they were “fanciful and draw conclusionsthat are just wrong”.

“The Menzies Research Centre is a Liberal Party think tank and this report has no credibility,” she said.

According to the report, in 2023-2024 alone, $40.3m was transferred from worker entitlement funds to unions – more than double what was paid out a decade prior.

Industry super funds paid out $7.76m last year to unions, up from $4.87m 10 years earlier.

And industry training funds splashed $8.87m to unions, an increase from the $3.4m in 2013-14.

ACTU secretary Sally McManus says the research into union funding has “no credibility”. Picture: John Appleyard / NewsWire

Coalition treasury spokesman Angus Taylor took aim at industry super funds, which are often helmed by Labor figures like former deputy prime minister Wayne Swan, the chairman of Cbus.

“Super funds need to deliver for their members as priority one, two and three. Anything less is unacceptable and threatens the social licence of super. Superannuation is Australians’ money,” Mr Taylor said.

Industry Super Australia and Labor were contacted for comment.

Originally published as Unions grow a $500m money tree from other sources, and have funnelled cash to Labor