Concerns raised over union super funds

The royal commission into trade union corruption has raised concerns about industry superannuation funds, but has held off making any firm recommendations until its final report.

However, the commission in an interim report released on Friday says there are sharp conflicts of interest, especially where unions force their members to pay contributions into a fund to which they have links.

It cites the Transport Workers Union practice of seeking to have TWUSUPER nominated as a mandatory super fund in enterprise agreements.

The commission also raised concerns about the financial and other arrangements between the TWU and TWUSUPER.

It is seeking further information from the TWU.

The commission has raised similar concerns about a link between the Labour Union Co-operative Retirement Fund, a related entity of the National Union of Workers.

Under federal law, workers have the freedom to choose their super fund.

Employment Minister Eric Abetz said the government would consider every word of the royal commission's interim report.

There was clearly a conflict of interest and the unions had been found wanting in their duty, he said.