Protect's roots are with the electrical industry
Jointly owned by the Electrical Trades Union Victorian Branch (ETU) -75%, and the National Electrical and Communications Association Victoria Chapter (NECA) - 25%, Protect Severance Scheme No 2 Pty Ltd as trustee for Protect Severance Scheme No 2 (trading as Protect) is an Approved Worker Entitlement Fund that fully complies with regulations under the Income Tax Assessment Act.
The Protect Trust Deed sets out the rules and obligations of the Fund and together with Corporations Law, is the cornerstone of our strong governance position and agenda.
Board of management
The Boards of the trustee companies of the Protect funds are each comprised of two independent voting directors, two representatives nominated by NECA and three representatives nominated by the ETU.
The directors of the employer and employee organisations are appointed to represent the interests of their members in the management and governance of the Protect funds. The two independent directors have been appointed to the Board of the trustee companies to provide additional investment, governance and compliance expertise. The Chairs of the Boards and Board sub committees are either one of the two independent directors.
Protect operates four divisions:
- Electrical Division
- Manufacturing Division (Metals)
- Maritime Division
- Firefighters Division
Only the Electrical Division sits on the Board, represented by the ETU Victorian Branch and the NECA Victorian Chapter, however accounts, investments and investment strategy are separated for each division.
Severance and redundancy funds are invested for each of our four divisions, with a relatively conservative investment strategy that preserves workers’ accounts. After funding administration costs, any surpluses made over and above the amounts owing to workers, may be distributed as trust distributions to the corresponding divisions owners. The amendments to the Fair Work Act (Proper Use of Worker Benefits) will prevent distributions to owners of the business, likely to be effective from November 2020.
Legislation Update and Senate Committee Submission
The Fair Work Laws Amendment (Proper Use of Worker Benefits) Bill 2019 is before Parliament and will seek to regulate Worker Entitlement Funds such as Protect. The Bill was referred to the Senate’s Standing Committee on Education and Employment. Protect made a written submission to, and appeared before, the Committee.