Old Men and the Sea

Dalgarno

So impoverished were seafarers before the SRF, many were forced to make their ships their old age home -- there at least they had a bunk and tucker. But conditions were gruelling for ageing men at sea and all too often they went to a paupers' grave leaving their widows with nothing.

"It was union action that won workers' superannuation," says Seafarers' Retirement Fund chairperson Paddy Crumlin. "There would be no super for workers without the unions and the membership fighting for it. We established it. We owe it to the trade union movement and the workers leading the union at the time."

Miners and maritime workers were among first blue collar workers to get super.

The Miners' Federation got a fully funded pension for its members in the forties.

After an early fifties campaign failed, the Waterside Workers' Federation finally brokered an agreement with employers along with permanency with the move to containerisation in 1967. (See Pensions for Veterans overleaf).

The Seamen's Union was embroiled in national stoppages over penal code provision bans in the sixties. But by 1968 the battle for super began in earnest.

The union argued that technological change must go hand in hand with "social progress". Before ship owners could expect seafarers to cooperate with reductions in crew numbers they had to commit to better crew accommodation and conditions, wages, workers compensation, medical benefits, the swing system, death and disability cover, early retirement and a pension.

In the final settlement the shipowners put in three parts to the workers one (more than the 2:1 stevedoring fund).

Contributions began at just $1.35 a week.

Some members at the time opposed the SRF unless it was entirely employer funded. The Seamen's Journal (June 1972) published a letter from the Ore Regent crew "unanimous in our general disapproval."

But there are none left standing who fail to fully appreciate the outcome.

Before the SRF the average seafarer left with his last pay packet to retire on. Consequently seafarers - like wharfies - tended to work to extremely old ages and many were still left with nothing.

Pat Geraghty, then assistant secretary of the Seamen's Union was on the committee to get super, alongside representatives of all three maritime unions (John Brennan, Les Mullins and Bill Heath).

"It was a long term struggle," he said. "Something seafarers had demanded for decades. The seafaring industry had a very high average age - over 50 with some seamen as old as 80 years. We were able to lower the retirement age. It encouraged older workers to retire as well as bringing younger people to sea."

The SRF was the first industry fund with multiple employers, covering the barges, ships, tugs and offshore industry. It was also the first started by a collective of unions including the marine cooks and stewards.

"A milestone in the history of the industry was the joining of the stewards and cooks unions in these retirement fund negotiations. These unions played their part and the result is a common document; the benefits of the retirement fund will flow simultaneously to seamen, stewards and cooks." (The Seamen's Journal Sept 21, 1972)

The fund employed its own investment manager and set up its own insurance for death and disability, leaving the insurance companies out of it. As with all industry funds the union and employers were equally represented on the board.

Glenn Davis, SRF Chief Executive Officer reports that net assets are now over $775 million. Since its inception the fund has paid over $830 million to members retiring, taking redundancy and leaving the industry. This also includes payments for members who have unfortunately been permanently disabled or to the families of those who have died.

Surplus Distributions

The SRF reports that more than a quarter of current member benefits have come from surplus distributions. The last distribution in 1998 saw over $40 million used to increase the fund service benefits and improve the resignation benefit.

Members can stay with SRF after leaving the industry.

"They are no longer forced from the fund and left at the mercy of the commission-based retail retirement products," said Glenn Davis. "The SRF retains almost 90 per cent of benefits that are rolled over when members leave the industry, which reflects the loyalty and trust seafarers have in the fund. More than 330 pension members are provided with a regular monthly payment to their bank account. The SRF pays over $10 million per annum to pension members."

The SRF also protects ill or injured members with a monthly benefit of 75 per cent of salary. Like Stevedoring Fund members, SRF members also have the investment choice option and both funds are developing a joint initiative to provide members with in-house financial planning services. (see box, p25)

SRF directors are Paddy Crumlin (Chair), Mick Doleman, Pat Geraghty, and Mick Cottrell from the MUA and Peter Barrow, David Parmeter, Don Sleath and Massimo Soprano from the companies, with independent director John Watts.