The Australian Council of Trade Unions today condemned the political attack on industry funds, and said that workers' retirement savings should be protected from the predatory and profit driven banking sector.
ACTU Assistant Secretary, Tim Lyons said that media reports today that the Financial Services Inquiry would recommend changes to governance of industry funds was concerning.
"These are only media reports, but Australians should be very concerned about the desire of the big banks to get hold of superannuation," Mr. Lyons said.
"The Financial Services Inquiry has an important job to do, and was established to look at competition, consumer protections and choice in financial services," Mr Lyons said.
"The FSI is not a plaything of the major banks, and must not be hijacked by them and their financial planners who are desperate to get their hands ordinary workers' superannuation.
"The continued multi-pronged attack on the not-for-profit model and governance structure of the industry funds is entirely for the benefit of the finance industry who want to make private profit from workers' savings.
"The industry funds have outperformed the retail funds, and the 'no commission' model continues to embarrass the finance sector and the banks. The argument that industry funds have a conflict is laughable, considering they are run entirely to benefit members.
"We trust that the FSI will look at the strength of the industry funds, and how they have delivered for Australians."
Mr Lyons said superannuation was a workplace entitlement that was fought and won by union members.
"A decent retirement income was not available to ordinary workers before legislated workplace superannuation. The Australian industry funds are some of the strongest, best performing and best governed in Australia, and our savings system is the envy of many other countries.
"This political attack on the industry funds is very dangerous for ordinary Australians and their retirement savings. The Liberals have already removed the previous government's commitment to increasing superannuation, and want to push retirement age to 70. Attacking industry funds is just part of their commitment to delivering for the big four banks.
"Considering the Federal Liberals have resisted a royal commission into the Commonwealth Bank financial scandal that saw many people losing their hard earned life savings because of CBA financial planners, the attack on industry funds is a hypocritical disgrace," Mr Lyons said.
Mr Lyons said the ACTU and unions would fight to keep superannuation default funds in Awards and enterprise bargaining agreements to protect workers' rights and entitlements.
Media contact: Elisa Fernandes 0414 873 625