Sally McManus is stepping down as Secretary of the Australian Council of Trade Unions (ACTU) after nearly a decade, leaving behind a complex legacy marked by significant political influence and a persistent struggle to reverse declining union membership. Her tenure, which began with a promise to reshape the union movement, will likely be viewed through the lens of two seemingly contradictory outcomes: unprecedented access and legislative success with the federal government, juxtaposed with a failure to stem the long-term erosion of union numbers and relevance.
A Bold Start and Partisan Stance
McManus made an immediate impact upon her arrival in 2017. In her first major television interview, she controversially stated that workers should not be bound by laws deemed unjust. “I believe in the rule of law when the law is fair and the law is right,” she told ABC’s 7.30 program. “But when it’s unjust I don’t think there’s a problem with breaking it.” This declaration, which alarmed conservatives and caused consternation within the Labor Party, quickly positioned her as a formidable and unapologetic advocate for organized labor. It set the tone for a leadership characterized by a clear partisan alignment and a willingness to challenge established norms and figures, including famously labeling former Reserve Bank governor Phil Lowe as “living in Boomer fantasy land.” Despite her combative approach, political opponents often acknowledged her personal likeability, strategic acumen, and thoughtful approach.
Unprecedented Political Influence
By many measures, McManus achieved a level of political effectiveness rarely seen among union leaders in recent decades. Her close working relationship with Prime Minister Anthony Albanese saw the ACTU’s industrial relations agenda largely enacted during the government’s first term. This included significant reforms such as multi-employer bargaining, enhanced rights for labour hire and gig economy workers, and the criminalization of wage theft. This legislative success represented a substantial win for the union movement, fulfilling many long-standing demands.
The partnership between Albanese, who did not have a traditional union background like some of his predecessors, and McManus was a defining feature of the government’s early years. Despite initial skepticism, Albanese managed to secure and maintain the confidence of the union movement, with McManus serving as one of his most trusted external allies. Following the achievement of these core industrial relations goals, the ACTU, under McManus, began to focus on broader workplace aspirations, notably advocating for a four-day work week and, more recently, a fifth week of annual leave.
Shifting Priorities and Economic Realities
The push for extended annual leave, however, met with considerable skepticism. While the ACTU argued that an additional week of leave could boost productivity through happier and healthier workers, many economists and even the government, through Treasurer Jim Chalmers, expressed reservations. This proposal highlighted a growing perception that the ACTU, having secured its key objectives within government policy, might be seeking headline-grabbing initiatives that were detached from prevailing economic conditions, particularly in light of the nation’s persistent productivity challenges. Some critics, even within the labor movement, suggested a focus on redistribution over economic growth.
The CFMEU Crisis and Personal Cost
Perhaps the most challenging and defining episode of McManus’s leadership involved the Construction, Forestry, Maritime, Mining and Energy Union (CFMEU). For years, the ACTU faced criticism for its perceived inaction regarding allegations of corruption, lawlessness, and intimidation within the powerful construction union. However, when the extent of alleged criminal infiltration became undeniable, McManus supported the difficult decision to place the CFMEU into administration. This move, which fractured the broader union movement and led to blue-collar unions splitting from the ACTU, made McManus a significant target.
The personal repercussions were severe. McManus reportedly altered her daily routines, moved locations frequently, and lived under police security advice due to threats from individuals connected to the construction industry. Former allies branded her and ACTU President Michele O’Neil as traitors. Despite any earlier hesitations, McManus ultimately paid a significant personal price for her role in addressing the issues within the CFMEU, demonstrating a commitment to cleaning up the movement even at great personal cost.
The Enduring Challenge: Membership and Relevance
Despite the political victories and the decisive action on the CFMEU, the fundamental challenge of declining union membership remained largely unresolved during McManus’s tenure. Union density in Australia hovers around 13 percent of the workforce, a stark contrast to the nearly 40 percent recorded in the early 1990s. While McManus attributed a recent slight increase to younger workers facing economic pressures, critics pointed to growth primarily within the public sector as the main driver. The core question of how to translate economic insecurity, which McManus correctly identified as fertile ground for collective action, into sustained membership growth and a revitalized union movement remains the most significant unresolved issue for her successor.
McManus’s legacy is therefore one of significant achievement in political influence and legislative reform, coupled with the persistent, complex challenge of reversing the long-term decline in union membership. Her leadership demonstrated a capacity for bold action and strategic engagement with government, but the ultimate measure of the union movement’s strength and relevance continues to be debated.
