Industry funds look set to dominate Australia's award system.
The Australian Industrial Relations Commission (AIRC) has chosen 12 not-for-profit super funds as default funds under the Federal Government's award modernisation program.
To date, 17 new awards for priority industries have been established. These include the fast food, hospitality, higher education and general retail industries.
AustralianSuper and Sunsuper were nominated in seven awards. REST and Hostplus were nominated in four awards.
AustralianSuper will be the only default fund under the textile, clothing, footwear and associated industries award and shares coverage of the security services industry with Sunsuper.
AMP was the only retail fund that received a nomination. The fund was nominated in the Horse & Greyhound Training Award and two other awards covering the racing industry.
Investment and Financial Services Association (IFSA) chief executive Richard Gilbert has called for a review of the decision.
"This is an extraordinary move on the part of the AIRC and could, in effect, deny workers access to some of the most cost-effective super funds in the Australian marketplace," Gilbert said.
"IFSA's preferred position is that default super funds not be nominated in awards, or alternatively, it not be compulsory for employers to choose the default fund specified in the award."
In addition, the AIRC also decided that the new awards will allow as a default fund "any fund to which the employer was making contributions for the benefit of employees on September 12, 2008."
The new awards will come into effect in January 2010.
The award modernisation process was announced by the Minister for Employment and Workplace Relations Julia Gillard in March 2008.
In Part 2 of our exclusive series, we ask leading names to nominate their best investments, the most effective industry group and the importance of platforms.
