“The last straw” – class action launched for transport workers’ unpaid super
“The last straw” – class action launched for transport workers’ unpaid super
Media release
12 April 2024
Gordon Legal and the Rail Tram and Bus Union have today announced a class action against one of Australia’s largest super funds.
The Emergency and State Services Super (ESSSuper) is under fire for unpaid superannuation to transport employees, which could exceed more than $40 million in unpaid entitlements.
ESSSuper is responsible for managing the superannuation of more than 127,000 members, holding over $36 billion in assets. The super fund has been accused of breaching its obligation to some of its members by failing to include shift penalty allowances when calculating the super owed to some Transport Superannuation Fund (Transport Fund) members.
The class action will represent a mix of transport workers who are still actively working and those who have already retired and are eligible to join the legal action.
Gordon Legal Partner James Naughton, one of the lawyers leading the class action, says there is no time to waste in seeking fair payments for the affected transport workers.
“Time is of the essence; we are seeing workers who are delaying their retirement after fighting for years to ensure they receive the fair superannuation entitlements that they deserve,” said Mr Naughton, “ESSSuper has failed to act and have left these workers with no other option, this is the last straw.”
In some cases, ESSSuper has been miscalculating superannuation entitlements by as much as $300,000. “These variances can have a drastic impact on the ability of the transport workers to retire and have the quality of retirement they deserve,” said Mr Naughton.
RTBU Member Elwyn Gonsalvez, a lead applicant in the class action said “my experience with ESSS has resulted in the exclusion of upwards of $90,000 from my superannuation fund after they failed to include my allowances under the Defined Benefit Scheme. I worked for over 45 years and to now be forced into legal action so I can retire is devastating.”
RTBU Branch Secretary Vik Sharma says that the union will keep working hard to ensure members who had worked hard for their retirement got what they were entitled to.
“Superannuation is the most important aspect of financial planning for retirement in Australia and it is a basic expectation of workers that superannuation is paid correctly,” he said.
Gordon Legal is encouraging anyone who has been a member of the Transport Fund to contact the law firm to understand their legal rights and eligibility to join the class action.
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