Union-linked super funds are facing pressure to examine whether members’ savings are indirectly supporting a proposed privatisation of aviation firefighting, as scrutiny intensifies over investment ties to Queensland Investment Corporation (QIC).
The United Firefighters Union of Australia Aviation Branch (UFUAV) has called on major industry funds and affiliated unions to investigate potential links between members’ retirement savings and a proposal to privatise Australia’s Aviation Rescue Fire Fighting Service.
Concerns have emerged following revelations that several union-linked super funds maintain investment relationships with QIC, which is pursuing the acquisition of aviation firefighting assets under an Airservices Australia proposal opposed by firefighters.
The issue has gained further prominence after former Opposition leader Peter Dutton was appointed to the QIC board, prompting questions from workers and unions about the influence over how retirement savings are deployed.
Funds with publicly reported financial relationships with QIC include Australian Retirement Trust, Brighter Super, Hostplus and HESTA, all of which have longstanding links to unions such as the Australian Workers’ Union, Australian Services Union and United Workers Union.
Secretary of UFUAV, Wes Garrett, said the situation raised significant concerns for union members whose savings may be indirectly exposed.
“Workers would be deeply concerned if their retirement savings were in any way associated with supporting the privatisation of an emergency service that exists to save lives,” Garrett added. “Unions and industry super funds may not yet be aware that their members’ retirement savings could have a connection to this proposal.
“But it’s clear that Union members particularly, will likely not be comfortable with Peter Dutton having direction over investment decisions that could see their retirement savings used to pursue the privatisation of frontline emergency services.
“Workers and their unions have every right to ask whether they are comfortable with retirement savings being associated in any way with the commercialisation of a frontline emergency service.”
The union argued the issue extends beyond a single transaction, questioning whether responsible investment frameworks align with backing a sovereign fund involved in privatisation efforts.
“QIC’s involvement in Airservices’s attempts to privatise an emergency service raises a bigger question,” he said. “If Union-aligned capital can be linked to the privatisation of aviation rescue firefighting, what does that say about the values underpinning so-called responsible investment?
“Industry super funds have built their reputation on serving workers and investing in the long-term public interest.
“It is entirely reasonable for members and affiliated Unions to ask whether backing a sovereign fund pursuing the privatisation of emergency services is consistent with those values.”
Public opposition to the proposal also appears significant, with an Essential Report survey cited by the union showing almost two thirds of more than 1,000 Australians opposed selling off aviation firefighting assets.
Garrett said the introduction of a profit motive into emergency response services raised serious concerns about safety and operational priorities.
“Aviation firefighting is not a money-making enterprise, it is a vital emergency service dedicated to protecting the lives of Australia’s air travellers.
“To deliver on its mission, aviation rescue firefighting must remain focused on operational preparedness, maintenance and response times, where seconds can mean the difference between life and death, not on shareholder returns.
“The introduction of a profit motive into that system raises very serious public safety questions.”
The union is urging affiliated organisations to question trustees and QIC on whether members’ capital could be implicated, while also calling for broader scrutiny of whether emergency services should be treated as an investable asset class.
“We believe many Union members, trustees and officials would be alarmed to learn that their retirement savings are being used to privatise emergency services.
“We are asking them to look closely at QIC’s role in this matter, and to stand with firefighters in opposing any move that turns a life saving emergency service into an investment proposition that put the lives of Australia’s air travellers at risk.”
The UFUAV said it was working with unions to oppose the proposal and is calling for the privatisation plan to be abandoned, while urging super funds to examine their relationships with QIC and its involvement in the process.
