Crossbencher ‘hopes to think’ she is close to a deal with government on union penalty bill unexpectedly defeated last year

This article is more than 7 months old

This article is more than 7 months old

Senator Jacqui Lambie is looking to strike a deal with the government “as soon as possible” on the union penalty bill, while Labor struggles to contain a debate in its own ranks about union-backed superannuation funds.

Lambie is meeting the industrial relations minister, Christian Porter, on Tuesday to continue negotiations on the bill, which would lower the threshold for the deregistration of unions and disqualification of their officials.

In November Lambie helped Labor, the Greens and One Nation block the “ensuring integrity” bill, a shock loss for the government triggered by an about-face from One Nation following a long thaw in the minor party’s relations with Australian unions.

Lambie – who had said that if militant construction unionist John Setka did not stand aside the bill would pass – nevertheless sought to amend it by proposing a review after 12 months and to exclude “a failure or refusal by the person to attend for work” from the list of breaches that could trigger deregistration.

On Tuesday Lambie told Guardian Australia she would negotiate with Porter “over the next week or two” but “he’s certainly been open and approachable about it”. In November, Lambie had complained Porter had failed to consult her about amendments to pass the bill.

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“I’d hope to think we’re close but … after what’s happened with the sports fiasco over the last few weeks, you’d like to think they’d put a bit of integrity on themselves,” Lambie said on Tuesday.

Lambie then clarified she will deal with the union bill separately, but the government’s handling of sports grant “will come further up with other things”, when it is investigated by a Senate inquiry.

“I would like to get this [industrial relations] bill over and done with as soon as possible,” she said.

“There’s bigger things to move on to … so as soon as the attorney [general] and I can come to an agreement that we’re happy with what we’ve got – then we’ll get it up there, we don’t want to be mucking around with it.

“The attorney [general] has got things to move on to as well. Then everyone has stability, we all know what’s going on, and all the other unions have got stability.”

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The comments are likely to spark a renewed bout of lobbying by the Australian Council of Trade Unions, which has taken out ads urging Centre Alliance to join Labor and the rest of the crossbench in blocking the bill.

Meanwhile, senator Tony Sheldon, the former Transport Workers Union national secretary, has written to Labor colleagues warning of “alarming consequences” if Labor backs a government bill to allow workers to opt out of superannuation funds nominated in their workplace deals.

The superannuation bill implements a recommendation of the trade union royal commission that workers should “have freedom of choice of superannuation fund”.

The shadow assistant treasurer, Stephen Jones, has suggested Labor could support the bill and met concerned colleagues on Tuesday to discuss the issue after Sheldon raised it in caucus.

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Sheldon’s letter, seen by Guardian Australia, argues that the Coalition’s rhetoric of “choice” in superannuation “hides the fact that ‘choice’ often means exposing people to the bad luck of opting in to poor performing retail funds … funds that are not structured for the needs of the workers in particular industries”.

Sheldon cited research by the McKell Institute showing “that where a choice of fund has been restricted in an enterprise bargaining agreement, by the workforce and their union” employees are more likely to be in high-performing funds.

“The vast majority of Australians do have choice, and it is right for that presumption to continue,” he said.

“However, there are important reasons why workers in some industries have voted to make a collective choice in favour of a single fund tailored for their needs – and this choice should also be recognised.”

For example, Sheldon argued transport workers benefited from the collective decision to nominate a superannuation fund with higher insurance for injury, deaths and suicide.

Jones told Guardian Australia that Labor will “make a final decision on the legislation when the Senate inquiry has concluded, but what is clear is that people do want the right to choose their super fund and the law should support that”.

“We are using the Senate inquiry process to ensure there are no unforeseen consequences,” he said.