Unite has signed up “hundreds� of its 28,000 members to the Huljich KiwiSaver scheme, according to the union chief, Matt McCarten.
McCarten said while member sign-ups to Huljich have been minimal “this is just the start of the relationship�.
“This really a trial to see how it works,� he said.
Unite, which bills itself as the country’s “fastest growing private sector community unionâ€?, struck up a deal with Huljich in January to promote the KiwiSaver scheme to its members.
McCarten said Unite engaged a consultant to select an appropriate scheme to distribute after receiving numerous enquiries from members about how to choose a KiwiSaver provider.
“I did consider IRIS [a union-based KiwiSaver and superannuation scheme] and was approached by other unions to use it,� he said. “But we got a view of each scheme based around some criteria: it had to be New Zealand-owned; have an ethical investment policy, and; returns were also important.�
Huljich emerged from the pack based on these three crucial factors but it also “got� the message that many Unite members wanted to save for a house deposit through the KiwiSaver concessions.
McCarten said most of Unite’s members worked in highly transient service industries such as restaurants, were lowly-paid and mainly young.
“About half of the members are in their first job,� he said.
Unite collects a $40 fee for each sign-up to Huljich, which “just covers administration costs�, McCarten said.
Despite coming from different ends of the political spectrum – McCarten is a high-profile advocate of the left while Huljich directors include former National Party chief, Don Brash, and Auckland mayor, John Banks – he said the two organisations also share a “cultural affinity�.
“We’re both growing organisations, we work hard and we back ourselves,â€? McCarten said. “Although I would fight [Brash and Banks] all the way on political issues I’d trust them with my wallet.â€?
Huljich has also formed distribution relationships with associated mortgage-broking companies NZF and Mike Pero.
As at March 31, 2008, the Huljich KiwiSaver scheme reported just over $100,000 in funds under management, equating to about 50 members.