CHAPTER 7 - COMMENTS FROM THE AUSTRALIAN DEMOCRATS
7.1 The Australian Democrats do not support this bill for similar reasons
to those expressed by the Labor senators. Superannuation is an essential
part of remuneration arrangements, and has been recognised as an industrial
matter in several landmark High Court cases dating back for more than
a decade.
7.2 In our agreement with the Commonwealth Government prior to the passage
of the Workplace Relations Act, we made it clear that we would review
the continuation of superannuation as an allowable matter when the Government's
choice legislation was released. In particular, we foreshadowed we would
seek to ensure that workers are not made worse off as a result of any
overriding or repeal of award superannuation clauses.
7.3 The evidence to this committee in this inquiry and its previous inquiry
on choice of fund have failed to satisfy us that workers would not be
made worse off as a result of these legislation. Therefore, we will not
support the repeal of superannuation as an allowable award matter.
7.4 However, the Democrats believe that more choice should be provided
for employees within award clauses. While industry funds provide by and
large a superior product to master trust funds and many other superannuation
products, the Democrats do believe that workers should have the choice
of exiting a fund which is not performing to their satisfaction. Many
award clauses already provide this by allowing for choice between more
than one fund within the award clause. However, many do not.
7.5 The Democrats, in the Committee stage, will move to require the Australian
Industrial Relations Commission to review all awards by July 1 2000 to
ensure that they provide workers with a choice of at least two industry-based
superannuation funds. Such a choice will retain the benefits of industry
based superannuation provision, while also giving employees the option
of exiting funds which are not performing in a “managed choice”
regime.
7.6 The Democrats have also moved amendments to the choice regime to
allow workers moving between employers to retain membership of an industry
fund which they are happy with. The Workplace Relations Act may also need
to be amended to ensure that such flexibility in interpretation of award
clauses can be allowed.
The Democrats recommend:
That superannuation be retained as an allowable award matter.
That the Act be amended to require the Commission to review all award
superannuation clauses by July 1 2000 to ensure that employees are given
a choice of at least two industry based superannuation funds.
That the Act be amended if necessary to ensure that workers moving
between employers have the option of retaining membership of their former
superannuation scheme if the employer consents.
(signed)
Senator Lyn Allison
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