The Construction, Forestry, Maritime, Mining and Energy Union (CFMEU) has labelled the Your Future, Your Super stapling provisions a “dirty deal” as some workers in hazardous industry may not get appropriate death and total permanent disability (TPD) insurance coverage.
Dave Noonan, CFMEU National Construction Secretary, said the Government’s superannuation changes would tie workers to one fund for life which meant people would enter construction without the tailored insurance they needed in a high-risk industry.
“The changes to superannuation passed by the Senate yesterday will mean workers are tied to the super fund they were entered into in their first job,” Noonan said.
“Young workers who move into construction from other industries could be tied to a fund with junk insurance or no insurance, leaving them without appropriate coverage in a hazardous industry.”
Noonan said the reason industry funds like Cbus existed, who echoed a similar sentiment, was for workers to have a super fund tailored for working in a high-risk industry.
“This includes offering tailored death and TPD insurance that give workers and their families certainty and protection if they are injured or killed at work,” Noonan said.
“Workers should be confident that the insurance they have through their super fund is appropriate for the work they do and covers them if they are injured on the job.
“Australian workers should be able expect the government to have their back when it comes to forcing super funds to put the interests of their members ahead of their own profits.”
Instead, Noonan said, the Government’s super changes would leave many workers worse off.
“Morrison and Frydenberg have done a dirty backroom deal with the retail super funds that put profits ahead of people and which have a long history of high fees, low returns and poorer outcomes for members,” Noonan said.
“Australians were shocked by revelations at the Banking Royal Commission which showed bank-backed for-profit retail super funds were charging fees to dead people, gouging huge profits off their members, and denying workers insurance coverage when they were entitled to it.
“Instead of cracking down on the shameful behaviour of these funds, Morrison and Frydenberg are giving them a leg up and selling workers out by tying them to low performing funds that put profits before people.”