The Federal Government has issued a rallying call to the country's biggest union to help it win support for policies to boost Australians' retirement savings.  

The Government wants to increase compulsory employer superannuation contributions from 9 per cent to 12 per cent by 2020 and wants it funded partly through the proceeds of the new mining tax.  

But the Opposition has reservations about the move and argues it is likely to hurt low and middle-income earners the most.

The Minister for Superannuation, Bill Shorten, was clearly among friends as he rose to speak at the Australian Workers Union (AWU) conference on the Gold Coast.

"At the last election Labor just scraped home, and partly only scraped home because of the work of unions such as the AWU," he said.

But Mr Shorten says there is more work to be done, particularly in boosting the retirement incomes of working Australians.

"They do it better in Brazil and Sweden and the Netherlands and other countries. I don't want Australia to be a better country than anywhere else, but no-one should be any better than us," he said.

"The adequacy of the retirement income of Australia's workers is not good enough."

Last year, the Government outlined a plan to lift the compulsory superannuation guarantee as part of a range of measures funded by the mining tax.

It says if the tax is not passed by Parliament, the superannuation changes will also be lost.

But the Government knows it has a battle ahead to get the legislation through and Mr Shorten made it clear to AWU delegates he wants their help.

"Adequate retirement income is a cause worth fighting for, and if the Labor Government and the union movement doesn't do it then no-one will," he said.

"This is why we need an enthused union movement promoting greater superannuation."

The Opposition's superannuation spokesman, Mathias Cormann, says the proposed changes will hit low and middle-income earners hard.

"Bill Shorten, at various times, has conceded the point that increasing the super guarantee by another 3 per cent is effectively a 3 per cent cut in take-home pay for working families," he said.

But the head of the Association of Superannuation Funds, Pauline Vamos, says the compulsory guarantee needs to be lifted to help close the gap between those with adequate retirement savings and those without.  

"This is exactly the same argument put forward last time the superannuation guarantee was increased. Nobody lost their jobs. No business folded," she said.  

"Basically this is coming in over a long period of time and the wage negotiation will include the superannuation guarantee increase.

"There are many people retiring today and will be retiring in the future who will be 100 per cent reliant on the age pension."    

The baby boomers who are retiring now don't stand a chance of being able to retire without govt. assistance, well not the ones who have been paid the minimum wage for the last 30 years considering rising inflation over the last decade. Super contribution has not kept up with the cost of living.....way behind the eight ball for most. The high wage earners will be ok, but they always have been, even before compulsory super.

Yes that's quite right pansi1951, it is entirely different for the low income workers.  They don't have anywhere near the same saving capacity, as those on higher incomes.  50 per cent of Australians will rely on the government funded pension, in one forum or another.  I know that's hard to believe, but that is the reality.  Half the population of Australia.      

Casual workers, women, young workers and older workers are unfairly discriminated against under our current compulsory superannuation retirement scheme, delegates to the AWU national conference were told today.   

Bill Shorten [bill shorten 1.jpg]Australia has a proud history of compulsory superannuation for workers and the union movement in this country has been at the forefront of reforms to the national retirement savings scheme.

“ But many workers are currently being left further and further behind because low income workers, casual workers, the young, the old and women do not reap the benefits of our nation’s progressive retirement policies,” Paul Howes, AWU National Secretary, told the union’s delegates.
Union wants cross-bench MPs to pass laws to step-up Super contributions

The AWU national conference, meeting in Queensland, has called on the Federal Government to adopt major reforms to our retirement savings system.

The union, in a wide-ranging debate on superannuation, also called on the Independents in Federal Parliament to join with the Federal Government to pass the proposed laws for a stepped increase to compulsory superannuation contributions to 12 per cent.   

The Australian Workers’ Union, Australia’s biggest blue-collar union, is holding a week-long national conference on the Gold Coast where it is celebrating its 125th anniversary. Nearly 500 delegates and observers are attending the union’s bi-ennial conference, the AWU’s highest decision making body.

“ When  the original superannuation laws were introduced in 1992 an exemption to superannuation payments for workers who earnt under $450 a month was adopted – but it was always meant to be a transitional arrangement.
End retirement savings discrimination against women, young people and casual workers

“ Now nearly two decades later this can be seen as anachronistic. Especially because  casualisation of the workforce has jumped sharply in the last decade. Nearly 1-in-4 female workers are casual workers today.

“ By keeping the $450 exemption in place we are effectively discriminating against the very people in most need of support at retirement age – the low income earners,” Paul Howes said.

The union will now campaign for the Federal Government  to immediately abolish the $450 a month superannuation exemption and call on the Government to ensure we end all retirement savings discrimination against low income earners.
Shorten tells delegates we could do better

The former AWU National Secretary, Bill Shorten, who is now the Minister for Superannuation told conference delegates that he felt there was more work to be done on super so that we can boost the retirement incomes of working Australians. He said unions should be supporting more improvements.

"They do it better in Brazil and Sweden and the Netherlands and other countries. I don't want Australia to be a better country than anywhere else, but no-one should be any better than us.

"The adequacy of the retirement income of Australia's workers is not good enough," Shorten told the 500 delegates and observers.   
Unions can increase members' retirement savings by nominating industry superfunds

Ian Silk [ian silk.jpg]Mr Howes noted that while we support the Federal Government’s plans to increase compulsory superannuation contributions to 12% over the coming years, the AWU maintains its continued commitment  to campaign for a further increase to the full 15 % that we believe every Australian worker should rightly receive.

Meanwhile National Conference assured AWU members that through the enterprise bargaining process our union will deliver 15% superannuation retirement savings to our members.

Speaking at the conference Ian Silk , theCEO of Australia's biggest super fund, AustralianSuper, urged delegates to ensure that nominated industry super funds were written into their enterprise agreements.

Otherwise many employers will nominate retail funds which could see workers lose more than $100,000 from their final retirement package,Ian Silk, whose super fund represents many AWU members, warned the national conference.