Unions have been bargaining around the issues of employer contributions and the fund to use for more than a quarter of a century.

It is highly unlikely that the current government will legislate to increase employer contributions.

The 2003 ACTU Congress set a goal to achieve an additional one per cent of superannuation through bargaining by 2006.

It is increasingly important for unions to develop a bargaining approach in relation to both contribution levels and the specification of a fund, for a number of reasons:

• The phasing in of the SG to 9% is now complete and it is unlikely that this legislated minimum will be increased.  
• There is growing community concern that current levels of super are not adequate to fund a comfortable retirement. It is widely agreed that lifting contribution levels to 15% would increase retirement benefits substantially.  
• Choice of super fund will take effect from 1 July 2005 with a potentially devastating effect on the retirement incomes of Australian workers. To guard against this, unions should ensure that industry funds are named as the default fund in all awards and agreements.  
• Many employers are outsourcing their corporate funds as well as closing defined benefit funds to new employees.

Unions are now campaigning for increased employer contributions, often with mandatory or voluntary employee contributions.

To date, there have been numerous successful campaigns resulting in increased super contributions for members.

For more information on the adequacy of retirement income, read about Increasing Contributions.

Superannution is an ongoing priority of the ACTU. Click on the link below to see the ACTU's new superannuation booklet, "Make sure Industry Super Funds are in all EBAs".

Large PDF files may take a long time to open, depending on the speed of your internet connection. If you have difficulty opening this PDF file, contact the ACTU Super Hotline on 1300 362 223 to order a hard copy.