The Victorian Labor government, under its new Premier Ben Carroll, announced plans on August 12 to introduce a new law to close down unions which have registered as incorporated associations.
The Associations Incorporation Reform Amendment Bill 2026 will 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 there is already a union covering a particular industry — in this case the Shop Distributive and Allied Employees Union (SDA).
RAFFWU would have registered if not for these undemocratic restrictions which, in this case, 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” do not organise workers to fight for their rights; they market themselves as “alternatives” to traditional unions registering as unincorporated associations. They are right-wing, and actively oppose COVID-19 measures, including vaccine mandates.
However, the only Red Unions registered as unincorporated associations are in Toowoomba, Queensland. This means that Carroll’s bill is a thinly veiled attempt to close down an effective union — RAFFWU.
RAFFWU, established 10 years ago, is a grass-roots 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.
In each case, the EBAs 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 workers.
RAFFWU secured a win at Dominos, when the Federal Court of Australia ruled in July in favour of thousands of delivery drivers and in-store workers in a class action. The court found 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 worker’s loss at about $8,326.10, 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.” 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 with 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 which 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; week day 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 organises workers to 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 corporate bosses at Coles, Woolworths and ALDI who prefer to make deals with the SDA.
Carroll owes his parliamentary seat and his elevation to Premier to the powerful SDA faction in the Labor Party and this bill that would abolish RAFFWU is about repaying that 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 given it has shown itself to be a fighting union. 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.]