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From Victorian Labor government withdraws bill targeting union power

How could the rise of RAFFWU affect the Victorian Labor Party's policy direction?

Likely What happens if… A possibility worth considering, not a forecast.

Victorian Labor may shift policy after RAFFWU successfully campaigns against bill The Victorian Labor government, led by Premier Ben Carroll, withdrew the Associations Incorporation Reform Amendment Bill 2026 after RAFFWU mounted a vocal campaign against it. This bill would have allowed Consumer Affairs Victoria to deregister incorporated associations playing an industrial relations purpose, which was seen as entrenching the power of unions like the Shop and Distributive Alliance (SDA). The withdrawal signals a change in the government's legislative stance regarding union regulation, moving away from measures that would have further entrenched the SDA's business model.

Reported by 1 independent outlet Written Oct 17
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How it reaches Victorian Labor Party

Reported by news outlets

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The facts so far

As reported. Each one links to where it comes from.

  • RAFFWU has successfully challenged deals between the SDA and employers for more than a decade.greenleft.org.au
  • The Associations Incorporation Reform Amendment Bill 2026 would have handed Consumer Affairs Victoria powers to deregister and wind-up incorporated associations.greenleft.org.au
  • The bill was said to be targeting so-called “red unions”, but its real target was RAFFWU.greenleft.org.au
  • Victorian Labor withdrew the bill on September 24, the final sitting day of parliament before the election.greenleft.org.au

Why it matters

The SDA's influence on the Labor Party is predicated on its large, loosely organised membership base and its alignment with employers. If employers cease benefiting from the weak collective agreements the SDA signs, the SDA's membership is at risk, which in turn threatens the political influence it wields over the Labor Party and the Victorian Labor government.

This situation highlights a broader tension within the Labor Party, where some factions, like Ben Carroll's, have historically associated with unions like the SDA, while others, such as those supporting RAFFWU, view the SDA as a 'fake union' that serves bosses' interests. The withdrawal of the bill signals a potential shift in policy priorities for the Victorian Labor Party.

What we don't know yet

  • Will the Victorian Labor government pursue further legislative changes regarding union regulation?
  • How will the SDA respond to the threat of membership collapse and loss of political influence?

What would change this answer

Federal Labor announces further changes to the Fair Work ActThis would increase the pressure on RAFFWU, potentially limiting its ability to take industrial action and bargain, regardless of the Victorian government's stance.
The SDA successfully secures new major recruitment deals with employersThis would stabilize the SDA's business model and its artificially-enlarged membership, maintaining its disproportionate influence over the Labor Party.

Reporting

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The full eventVictorian Labor government withdraws bill targeting union power Everything aboutVictorian Labor Party

Brind's analysis is written by AI from the reporting linked above and can be wrong. This explainer is a possibility worth considering, not a forecast: steps marked as Brind's reasoning are not stated in the reporting. It is not investment advice; do your own research.