The Unholy Alliance: Big Unions and Industry Super Funds in the Spotlight

Australia’s massive $3.9 trillion superannuation industry is under increasing scrutiny, with major players like AustralianSuper, Cbus, and CareSuper facing allegations of questionable practices and union ties. 

A system designed to safeguard Australians’ retirements is instead accused of mismanagement, conflicts of interest, and weak oversight.

Power Without Accountability

Industry super funds often promote a "members-first" ethos, but recent controversies suggest otherwise. With millions of members and significant connections to unions such as the CFMEU, these funds have been criticised for governance failures.

Take Cbus, for instance. Managing $94 billion, the fund recently admitted to delaying death and disability insurance claims. 

This failure impacted 10,000 members, leaving grieving families and disabled workers $20 million out of pocket.

Questionable Union Ties

The close relationship between unions and super funds continues to erode public trust. Michael O’Connor, CFMEU manufacturing boss, has been accused of misusing First Super funds to finance a union delegate’s salary during a period of financial strain. 

Such allegations raise concerns about whether union leaders see super funds as tools for personal gain rather than as stewards of member wealth.

AustralianSuper, the largest industry fund with $341 billion under management, has also faced backlash. 

It could be fined $27 million for failing to consolidate over 90,000 member accounts, a misstep that reportedly cost members nearly $70 million. This kind of negligence directly jeopardises the financial futures of everyday Australians.

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