Unions and Superannuation

Abstract

Historically unions have placed a low priority on the attainment of occupational superannuation. They and their members have generally found it more attractive to press for ‘money in the hand’ rather than for deferred payments. Many factors contributed to this state of affairs. In the post-war full employment period those seeking employment beyond the normal retirement age had little difficulty finding such work. For others, the social security system provided a ready source of retirement pensions. The fact that aged pensioners constituted a small proportion of the population, and that the pension was means tested, ensured that the taxation system could support retirement pensions without those in the workforce bearing an excessive tax burden. There were adequate investment funds for the ‘lucky country’, and the policy of tariff protection helped ensure a reasonable rate of return on investment in local manufacturing. This, in turn, helped maintain high levels of employment. In addition, employers tended to argue that superannuation was not an ‘industrial’ matter for the purpose of the Conciliation and Arbitration Act and the Conciliation and Arbitration Commission (the Commission) and unions themselves were afraid to risk a High Court challenge. In such a climate, superannuation was, in the main, the prerogative of senior and middle management, and of the public sector workforce.