Board fees for unionists from super funds up 51pc in a year

Fees paid to unions by super funds have risen dramatically in the past year, with pay rises of as much as 51 per cent.

ACTU secretary Dave Oliver’s fee jumped 51 per cent from $54,248 to $82,239 for sitting on the board of Australian Super. Picture: Justin Brierty

Fees paid to unions by industry super funds have risen dramatically in the past year, with pay rises of as much as 51 per cent for senior officials appointed to the boards of directors.

The ACTU received a total of $142,367 in 2014-15 from Australian Super, the nation’s biggest super fund, and construction ­industry super fund Cbus for ­directorships given to national secretary Dave Oliver and president Ged Kearney — a 41 per cent rise on the $101,029 paid to the ACTU in 2013-14.

Mr Oliver’s fee jumped 51 per cent from $54,248 to $82,239 for sitting on the board of Australian Super, while Ms Kearney’s fee from Cbus rose 29 per cent from $46,781 to $60,128.

The fees were part of a $5.4 million windfall reported yesterday by The Australian flowing from the top 10 industry super funds to unions over the past two years in return for senior officials acting as super fund directors.

The ACTU stressed all fees were paid directly to the council.

Most industry super funds have disclosed payments to third parties — which also comprise payments to employer groups — in the fine print of ­financial documents since 2013. However, the ACTU did not reveal the fees received during a campaign targeting 50,000 voters as part of lobbying efforts against proposals to boost independence on industry super fund boards.

A spokesman for Cbus said fees paid to directors comprised a base fee and payments for attending individual meetings. Base fees have risen a modest 3.5 per cent.

The Australian Manufacturing Workers Union reaped a 51 per cent pay rise in one year from Cbus for the directorship of its assistant national secretary Glenn Thompson. Mr Thompson’s fees climbed from $57,963 in 2013-14 to $87,599 in 2014-15 after attending an extra five board meetings in 2014-15 compared with the previous year.

Fees for Mr Thompson’s roles on remuneration committees, audit and risk committees, and for member services and marketing committee meetings also rose over the course of the year.

Mr Oliver said: “Unions, as 50 per cent owners of trustee companies, are entitled to ­appoint officials as trustees. When these appointments are made, the unions allow employees to take time away from their regular duties.”

Australian Super chairwoman Heather Ridout, who is paid personally for her role on the board, received a 13 per cent pay rise, from $161,915 to $183,194, over the same period.

James Paterson from the Institute for Public ­Affairs said yesterday: “People ought to know when industry super funds members’ fees are going to bankroll union campaigns.”