As the Australian Industrial Relations Commission's (AIRC) award modernisation process rolls on after the second tranche announcement earlier this month, the division between industry and retail superannuation funds has further widened.
No retail funds were nominated in the second tranche, while several stand-alone corporate funds received a guernsey.
In the first tranche announced earlier this year, only one retail fund, AMP, made the grade.
Twelve not-for-profit funds were chosen, with AustralianSuper and Sunsuper being nominated in seven awards.
Investment and Financial Services Association (IFSA) chief executive Richard Gilbert has been vocal in his opposition to the process, saying it is handing the industry sector a virtual monopoly and will deny Australians access to some of the most cost-effective super funds in the marketplace.
While it seems the retail sector has been left out in the cold, there are murmurs the award modernisation process is also causing rifts within the industry fund sector.
Speaking at the Australian Superannuation Funds of Australia (ASFA) Roadshow held in Sydney last week, ASFA research and resource centre director Ross Clare said state-based, multi-industry funds and small industry funds have also not been named.
"The process has been helpful for large, national industry funds, but state-based unions and brands are left out of the process," Clare says.
John Paul, chief executive of multi-industry fund Asset Super, agrees.
"The national funds with close affiliations with the Australian Council of Trade Unions have more ties to the federal arbitration system. The state system is dead, so the multi-industry funds are going to be the most disadvantaged," Paul says.
Despite this ASFA chief executive Pauline Vamos says state-based funds need to work their contacts and get involved in the process.
"Those that want to come to the table should be able to," Vamos says.
Clare says the introduction of grandfathering provisions should protect the retail and smaller funds that have so far been left out of the process.
The grandfathering provisions allow that funds to which employers were making contributions to on or before 12 September 2008 will be permitted as default funds.
"There will be some impact on public sector funds but not too much due to enterprise agreements," Clare says.
"Corporate funds are usually protected by enterprise agreements or 'great grandfathering' of default fund arrangements."
The new awards come into effect in January 2010.
