The Victorian Labor government, under new Premier Ben Carroll, announced on August 12 it would introduce a new law to close down unions registered as incorporated associations.
The Associations Incorporation Reform Amendment Bill 2026 would affect the Retail and Fast Food Workers Union (RAFFWU), which was forced to register as an incorporated association in Victoria because of the discriminatory federal system.
This archaic system prevents a new union, like RAFFWU, from registering if a union already covers a particular industry — in this case, the Shop, Distributive and Allied Employees’ Union (SDA).
RAFFWU would have registered if not for these undemocratic restrictions that force workers to remain in a do-nothing union, like the SDA.
Labor claims the law is needed because “red unions register as ordinary community associations instead of real unions”.
“Red unions” market themselves as “alternatives” to traditional unions, setting up as incorporated associations, originally in Queensland, but also in Victoria. They do not organise workers to fight for their rights, are right-wing, including actively opposing COVID-19 measures and vaccine mandates.
But Carroll’s bill is a thinly veiled attempt to close down RAFFWU.
Established 10 years ago, RAFFWU is a grassroots, member-led union. It was formed after Fair Work Commission (FWC) hearings in 2015 overturned enterprise bargaining agreements (EBAs) between Coles, McDonald’s, Domino’s Pizza, IGA, Bakers Delight and other major employers, and the SDA. They were overturned because they were found to have left workers worse off than they would have been under the relevant award.
The FWC hearings were instigated by retail and fast-food workers.
Since its founding, RAFFWU has gone from strength to strength, organising in more workplaces and winning real gains for all workers.
RAFFWU secured a recent win at Domino’s when the Federal Court of Australia ruled in favour of thousands of delivery drivers and instore workers in a class action. The court found in July that Domino’s had engaged in “misleading or deceptive conduct”, by instructing its Australian franchisees to pay staff under a 2005 enterprise agreement rate, which excluded key entitlements, instead of the higher-paying Fast Food Industry Award.
It estimated the former workers’ loss at about $8326.10, plus interest, after finding that Domino’s caused them to suffer loss through underpayment. Domino’s is considering an appeal.
Josh Cullinan, speaking for RAFFWU on July 26, said: “When members explained how old rotten SDA deals were ripping them off at Domino’s Pizza, we knew something was off.”
Cullinan said the union undertook an investigation in 2018 and found “a system of exploitation perpetrated by a multi-billion-dollar franchiser on some of Australia’s lowest-paid workers”. He said the court “has vindicated our campaign and set the record straight”.
RAFFWU also successfully initiated a class action for a paid 10-minute break for McDonald’s workers in shifts between four and nine hours, and two 10-minute paid breaks for shifts longer than nine hours. The action alleged that McDonald’s operated a system of work that denied McDonald’s workers their right to paid breaks, in breach of the enterprise agreement and the award.
RAFFWU’s successful organising of McDonald’s workers meant that they received a 25% casual loading rate in addition to penalty rates; a 25% Saturday loading and 35% Sunday loading rate; weekday morning and evening penalty rates; and free uniforms.
The very existence of RAFFWU, which is run by a team of young people working in the industry and which has shown it can win real gains, is a political threat to the SDA.
Labor’s new bill, which it says will “stop hate groups from incorporating” will be welcomed by the bosses at Coles, Woolworths and ALDI, who prefer to make deals with the SDA.
As Carroll owes his parliamentary seat and elevation to premier to the powerful SDA faction in the Labor Party, this bill is about repaying the favour.
Outrageously, the Victorian Trades Hall Council (VTHC) never allowed RAFFWU to affiliate and is now cheering on this bill.
Retail and fast-food workers should be allowed to join whichever union they choose and it is little wonder that they are joining RAFFWU. This bill must be opposed by all unions that support freedom of association and a fighting union’s right to exist. Further, they should force VTHC to oppose the bill.
[Sue Bolton, a long-term councillor on Merri-Bek City Council, is standing for Socialist Alliance in Broadmeadows in the Victorian election.]