Inequality and Insecurity Responding to the challenge of precarious work The Ron McCallum Debate 2016 Discussion Paper
PreparedbytheAustralianInstituteofEmploymentRightsInc.
Authors:ClareOzich,MaryLambertandKeithHarveyDate:November2014
AustralianInstituteofEmploymentRightsIncwww.aierights.com.au214GrahamStreetPortMelbourne,Victoria,3207 Tel:+61396479102Fax:+61396479199 Email:[email protected] ThisworkislicensedunderaCreativeCommonsAttribution-NonCommercial4.0InternationalLicense.
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The 6th Annual Ron McCallum Debate 2016
Discussion Paper
Inequality and Insecurity - Responding to the challenge of precarious work Thedeclineofeconomicallysecure,standardworkingarrangementsisaworld-widetrendwitheconomic,socialandpoliticalconsequences.In2016,theDebatewillseektounravelthelinkagesbetweenemploymentinsecurity;economicandsocialinequality;economicinstabilityandbusinesssurvival.Note:ThepurposeofthisDiscussionPaperistoinformtheRonMcCallumDebate.ItsetsouttheapproachoftheAustralianInstituteofEmploymentRights(AIER)totheissuesandproposesdiscussionquestionsthatspeakersandparticipantsmaywishtoreflectuponanddiscussduringtheDebate.ThepaperrepresentstheviewsofAIERanditsauthorsandinnowayrepresentstheviewsofanyparticipant.AbouttheAIERTheAustralianInstituteofEmploymentRightsisanindependent,not-forprofitorganizationwiththefollowingobjectives:
AdoptingtheprinciplesoftheInternationalLabourOrganisationanditscommitmenttotripartiteprocesses,theAustralianInstituteofEmploymentRightswillpromotetherecognitionandimplementationoftherightsofemployeesandemployersinaco-operativeindustrialrelationsframework.
TheAIERisanorganisationindependentofgovernmentoranyparticularinterestgroupandseeksimplementtheseobjectiveswithacademicrigorandprofessionalintegrity.TheAIERincludesemployerandemployeeinterestsinitsmakeup,membershipandoperation.Itisalsofortunatetohaveincludedinitsgovernancestructureandadvisorybodiesrepresentativesfromtheacademicandlegalfraternity.AIERdrawsitsbasisforthispaperfromitsbeliefthatanysystemofindustrialregulationmustbefoundedinprincipleswhichreflect:
• RightsenshrinedininternationalinstrumentswhichAustraliahaswillinglyadoptedandwhichasamatterofinternationallawisboundtoobserve;
• ValueswhichhaveprofoundlyinfluencedthenatureandaspirationsofAustraliansocietyandwhichareembeddedinAustralia’sconstitutionalandinstitutionalhistoryofindustrial/employmentlawandpractice;and
• Rightsappropriatetoamodernemploymentrelationshipwhicharerecognisedbythecommonlaw.
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TheAIERhasdevelopedaninstrument,theAustralianCharterofEmploymentRights1,basedonthethreesourcesofrightsidentifiedabove.TheCharterisbothauniqueandanappropriatereferencetoolforexaminingtherightsandresponsibilitiesofemployersandemployeesinAustralia,especiallywhenconsideringthechallengesofprecariousemployment.INTRODUCTION
“Employmentisnowthebearerofinequalityandunfairness.”ProfessorJohnBuchanan2
Forasignificantperiodofthetwentiethcentury,prosperityinindustrialisednationswasunderpinnedbyeconomicallysecurestandardworkingarrangementsandauniversalsocialsecuritysafetynet.Sincethe1970sand80s,boththesepillarsforprosperityhavebeenunderminedandfractured.Thewayoureconomyisstructuredisnolongerworkingformanypeopleinoursociety.Economicpoliciesofthelast30yearswhileprovidingforeconomicgrowthhavealsoledtoincreasinginequality,growinginsecurityatwork,lowwagegrowthandmorelowwagework,andtoomuchunemploymentandunderemployment.EmploymentinsecurityisnowafeatureformanyworkersacrosstheAustralianeconomy.Businessesarealsofacingdisruptionandanunstableeconomicenvironment.Tonowconclude,asJohnBuchananhas,that“employmentisnowthebearerofinequalityandunfairness”isastarkbreakwiththelong-standingnarrativethatajobisthepathtoeconomicsecurity.Thesefeaturesofourcontemporarysocietyrequireexamination.Atthisyear’sRonMcCallumDebateweareexploringtheconnectionbetweengrowingeconomicinequalityandthegrowthofinsecureandprecariouswork.InthisDiscussionPaperweexamineeconomicinequalityinAustraliaandthegrowthininsecureworkanditsimplicationsforworkers,businessandthecommunity.Wethenconsiderpossibleresponsestoaddressingprecariousworkincludingregulation,collectiveaction,otherformsofeconomicsecurityandbusinessandgovernmentleadership.
1http://www.aierights.com.au/resources/charter/2JohnBuchanan,“Anewmodelforfairnessinemployment”,AustralianOptions,No76,May2014.2JohnBuchanan,“Anewmodelforfairnessinemployment”,AustralianOptions,No76,May2014.
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ECONOMICINEQUALITYIncreasingwealthandincomeinequalityinAustraliaandotherindustrialisedcountriesisnowanestablishedfact.TheworkofeconomistssuchasThomasPikkety3andJosephStigliz4inrecentyearshastracedtheriseineconomicinequalityandthereasonsbehindit.Thegrowthineconomicinequality,particularlyinthelastthirtyyears,ishavingandwillcontinuetohaveadversesocial,politicalandeconomicconsequences.WhileAustraliamanagedthemostrecenteconomiccrisisbetterthanmostothersimilarnationsandwesitinthemiddleoftheOECDonitsinequalityindex,wearebynomeansimmunefromtheglobaltrendsofinequalityandinsecuritynortheirconsequences.The2015ACOSSreport,“InequalityinAustralia:ANationDivided”,detailsincomeandwealthinequalityinAustralia,howbigthegapsareandwhoisaffected:
“TheReporthasfoundthatthereisabiggapinincomesandwealthbetweendifferentgroupsinsociety.Apersoninthetop20%incomegroupreceivesaroundfivetimesasmuchincomeasapersoninthebottom20%.Apersoninthetop20%wealthgrouphasastaggering70timesasmuchwealthasapersoninthebottom20%.
TheReportalsofindsthatthesegapsarewidening.Overthelast20yearstheshareofincomegoingtothoseatthetophasrisen,whiletheshareflowingtothoseinthemiddleandatthebottomhasdeclined.Thesameistrueforwealth,withthebottomandmiddlehavinglostgroundtothoseatthetop.Thewealthofthetop20%wealthgroupincreasedby28%overtheperiodfrom2004to2012,whilebycomparisonthewealthofthebottomincreasedbyjust3%.”5
Oneofthekeytrendscontributingtoinequalityisthedivergencebetweenlabourproductivityandwagesgrowth.AstheChieflyResearchCentre’srecentReport,“Inequality:TheFactsandFigures”states:
“LabourearningsarethelargestcomponentofincomeformostAustralians,andthereforethemostimportantdriverofincomeinequality.Averagewagestodayaregrowingmoreslowlythanproductivity,contributingtoinequalityintheshorttermandthreateningfutureproductivitygrowth.”6
Thisdecouplingofrealwagesfromproductivityandthesignificantfallinlabour’sshareofGDP,downfrom62%in1978to52%in2010,hasgivenrisetohouseholdincomeinequalityandhasmeantthat“resourcesthatprovidematerialwelfareforthebulkofthepopulationthroughpaidemploymenthavebeenshrinking.”73Pikkety,Thomas,(2014)CapitalintheTwenty-FirstCentury.4Stigliz,Joseph,(2012)ThePriceofInequality.5http://acoss.wpengine.com/wp-content/uploads/2015/06/Inequality_in_Australia_FINAL.pdfp.8.6http://apo.org.au/files/Resource/inequality_facts_and_the_future_aug_2016.pdfp.16.7Buchanan,“Anewmodelforfairnessinemployment”.
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Wagegrowthisstayingpersistentlylow,hittinganalltimelowthisyear.TheReserveBankofAustraliahasnotedAustraliaiscurrentlyexperiencingthelongestperiodoflowwagegrowthsincetheearly1990srecessionandthatthe“declineinwagegrowthsincelate2012appearstohavebeenunusuallylargerelativetotheincreaseintheunemploymentrate.”8Thequestionisbeingposed-islowwagesgrowthanewnormal?9Ifso,incomeinequalitywillcontinuetoposeproblemsforoursocietyandeconomy.AstheACOSSreportstates:
“Excessiveinequalityinanysocietyisharmful.Itisharmfultotheabilityofpeopletoparticipateinsocialandeconomicopportunities,anditunderminessocialcohesion.Excessiveinequalityisbadfortheeconomy.Whenresourcesareconcentratedinfewerhands,thereisareductionineconomicactivity.Fewerpeoplearestartingupbusinesses,buyinghouses,andpurchasinggoodsandservices.Morepeoplebecomedependentongovernmentintervention.Excessiveinequalityisultimatelyunhealthyfordemocracy.Moneyandpowermatterintermsofwhoinsocietygetsheard,whocanparticipate,andwhoseinterestsareadequatelyprotected.”
ApaperpreparedbytheOECD,IMF,ILOandWorldBankfortheG20meetinginSeptember2015concededthat“Thenewbodyofevidencecontrastswithanearlierviewthatinequalitywasapricethathadtobepaidforhighergrowth.Infacttheevidenceshowsthattheeffectcanrunintheoppositedirection,withmoreequalityleadingtohighergrowth.”10InTheSpiritLevel:WhyMoreEqualSocietiesAlmostAlwaysDoBetter,KatePickettandRichardWilkinson11,highlightedthe"perniciouseffectsthatinequalityhasonsocieties:erodingtrust,increasinganxietyandillness,(and)encouragingexcessiveconsumption.”Insecureandprecariousworkgoeshandinhandwiththedevelopmentofalowwageeconomyandeconomicinequality.JosephStigliz12remindsusthatinequalityisachoice.Heargues,“Wideninganddeepeninginequalityisnotdrivenbyimmutableeconomiclaws,butbylawswehavewrittenourselves.”Inthisdiscussionpaperweareconcernedwiththepolicychoicesandregualtionsastheyrelatetoworkplacerelationsanditsintersectionwithgrowinginequality.DiscussionQuestions:
1. WhataretheimplicationsforAustraliansocietyofgrowinginequality?2. Whataretheconsequencesforoureconomyandbusinessesifasasocietywedonot
addressinequality?8http://www.rba.gov.au/publications/bulletin/2015/jun/pdf/bu-0615-2.pdf9https://www.theguardian.com/business/grogonomics/2015/aug/13/is-australia-stuck-in-a-new-normal-of-low-wages-growth10https://www.oecd.org/g20/topics/employment-and-social-policy/Income-inequality-labour-income-share.pdf11https://www.equalitytrust.org.uk/resources/the-spirit-level12http://opinionator.blogs.nytimes.com/2014/06/27/inequality-is-not-inevitable/
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INSECUREANDPRECARIOUSWORKThereisnodoubtthattheworkplacehasundergonemassivechangesinrecentdecadesforamyriadofreasons.Thedriversofthischange:innovativetechnology,newmanagementtheories,socialchange,globalisation,competitivebusinesspressures,outsourcing,etc.haveledtotheemergenceofnewtypesofwork.Whilethesechangeshavebeenbeneficialforsomeworkers–largelyprofessionalorITworkers–thesedrivershavealsoledtotheemergenceofaclassofworkersdependentuponinsecureorprecariousworkwithlittleornosecurity.13The“LivesonHold”reportfromtheIndependentInquiryintoInsecureWorkdefinesinsecureworkas“poorqualityworkthatprovidesworkerswithlittleeconomicsecurityandlittlecontrolovertheirworkinglives.14InoursubmissiontothatInquiry,theAIERnotedthevariouswaysthatinsecuritycanimpactonworkersfromemploymentinsecuritytoincomeinsecurity,working-timeinsecurity,functionalinsecurity.15Forthepurposesofthispaperwearefocusingontheinsecuritylinkedtonon-standardandcontingentformsofemployment.Therearemanyformsofinsecureorprecariousworkincluding:
• Casualisation• Uberisationofwork• Labourhire• Contractors• Fixedtermcontracts• Internships
Insecureworkinanyoftheaboveformscanprovidedecentemploymentforindividuals.AstheProductivityCommission’sReportintotheAustralianWorkplaceRelationsFrameworknoted,“Peopleinnon-standardjobsarehighlyheterogeneous.Suchjobscansuitpeople’scircumstanceswell.”16However,ourconcerninthisdiscussionisthesystemicreplacementofsecureworkwithformsofinsecurework.AsDavidWeilarguesinTheFissuredWorkplace,17manyjobsthatonceprovidedreasonableincomesarenow‘fissured’andbrokendownintoinsecureformsofemployment.ThissamesituationisfoundinAustralia.
13Weil,David,(2014)TheFissuredWorkplace,HarvardUniversityPress,CambridgeMassachusetts14InquiryintoInsecureWork,“LivesonHold:UnlockingthepotentialofAustralia’sworkforces”,2012,http://www.actu.org.au/our-work/independent-inquiry-into-insecure-work-in-australia/report15http://www.aierights.com.au/wp-content/uploads/2015/12/AIER-Submission-to-the-Insecure-Work-Inquiry-190112.pdf16ProductivityCommission(December2015)ReportoftheInquiryintotheWorkplaceRelationsFramework,http://www.pc.gov.au/inquiries/completed/workplace-relations/report17Weil,TheFissuredWorkplace.
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TheACTUhasnoted:18
“Today,therealityisthatupto40percentofAustralians(2million)areinsomekindofinsecurework,employedascasual,independentorfixedtermcontractorsoronotherprecariousemploymentarrangements.Manyhavenopaidsickleave,noannualorlongserviceleaveandnorighttoongoingwork.Theymayhaveworkedthesameshiftsforyearsbutcanstillbesackedatshortnotice,withnoentitlementtoredundancypay.Manyhavenorecourseiftheyareinjuredatwork–oftenhavingtopaytheirownworkers’compensationpremiums.”
Amorerecentmanifestationofinsecureworkhasemergedaspartofthegrowing“on-demand”economy.InreportinguponcurrentworkplacedevelopmentsCorrsChambersWestgarthbelievethereisalikelihoodofnegativeemploymentoutcomesarisingfromenterprisesutilisingnewtechnologicalchanges.Thelawfirmcomments:19
“Amajorshiftinthenatureof‘gig’orpeer-to-peerworknotedbytheProductivityCommissionisthatitismainlytaskbased,withconsequentpotentialtochangethenatureoftheemploymentrelationship.Platformsofferconsiderablebenefitstoworkers,includingflexiblehoursandtheopportunitytosupplementincome.However,thismaycomeatthecostofemploymentsecurity,stabilityofincomeandhealthandsafetyprotections,whichmaynotapplytosomeformsoftask-basedwork.Further,workersmayneedtoacceptengagementasanindependentcontractorinordertoremainintheirchosenindustry(e.g.journalists,designers).”
Insecureemploymentisfoundthroughouttheeconomy.Itsveryubiquityisoneofitsdefiningfeatures.Areasoftheeconomycontributingtojobsgrowthsuchashealth,caringworkandeducationarebecomingsectorsoflowpaidinsecurejobs.Theretail,hospitalityandaccommodationindustrieshavealwaysbeenindustrieswithhighlevelsofcasualisation.Thegrowthintheuseoflabourhireisaddinganotherdimensiontoinsecureworkacrossarangeofindustries.TherecentexampleofworkerslosingtheirjobsattheCarltonUnitedBreweryinMelbourneonlytobeofferedtheirjobsbackonsignificantlyreducedpaydemonstratestheinsecurityassociatedwithlabourhire.20Universitiesarenowplacesofinsecurework.TheNTEUreportsthatoneintwouniversityjobsarecasualorfixedtermandfouroutoffivenewjobsinthelastdecadearecasualorfixedterm.Over80percentofteaching-onlystaffarecasualandover80percentofresearch-onlystaffareonfixedtermcontracts.
18AustralianCouncilofTradeUnions,(26August2015)BuildingaBetterFuture-AStrongEconomyforAll.ResponsetotheNationalReformSummit2015,http://www.actu.org.au/our-work/publications/building-a-better-future-a-strong-economy-for-all-actu-response19CorrsChambersWestgarth(4August2016)2016WorkplaceMid-YearReview,Seehttp://www.corrs.com.au/thinking/insights/workplace-mid-year-review-2016/20http://www.smh.com.au/business/workplace-relations/staff-picket-cub-factory-as-sackings-stall-production-20160712-gq3zsx.html
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Theriseinunpaidinternsinprofessionalworkisanotherexampleofthetrend.Unpaidinternshipshavebecomeaprominentfeatureoftheyouthlabourmarketasyoungpeoplestrivetoovercometheparadoxofnotbeingabletoacquireexperiencewithoutajob,andacquireajobwithoutexperience.21Thelackofregulationconcerningunpaidinternshipsalsohasthepotentialtoundermineestablishedprovisionsinthebroaderemploymentsystem.TheWorkplaceOmbudsman,NatalieJames,hasnotedparticularindustrieswhereinsecureworkandexploitationaremorecommonincludingCleaning,SecurityandSupermarketTrolleyCollection.22Theseareindustriesthatuseprocurementandoutsourcingwithfrequentbreachesofworkplaceentitlements.TheWorkplaceOmbudsmannotedthatoftenemployeesintheseareaswerelesseducatedormigrants.Theexploitationofmigrantworkershasattractedattentionrecently.MigrantworkersinAustraliaareparticularlyvulnerabletoinsecureworkarrangements.AsJoannaHowewrites:
“Australia’sofficialtemporarymigrationprogramtiesmigrationstatustoemployment.ThisentrenchestheprecariousstatusofmigrantworkersbecausetheirrighttoremaininAustraliaiscontingentupontheemployer’scontinuingdemandfortheirlabour.”23
Suchprecarityhasconsequences.InarecentarticleconcerningsevenChinesemigrantworkersbroughttoAustraliatoinstallmachinery,Howestatesthattheseemployees,
“…wereunderpaidandtheirliveswereputindangerbecauseoftheirlackofknowledgeofAustralianworkplacesafetylaw.”24
Alackofappropriateregulationisallowingmigrantworkersandinternationalstudentstobevictimsofinsecureandillegalemploymentpractices.TheextentofsuchavulnerableclassofemployeesisrevealedbyHoweandReilly:25
“Itisimportanttoacknowledge,then,thattherearewellover500,000temporarymigrantswiththerighttoengageinunskilledworkcurrentlyresidentinAustralia.Theirworkrightsarenotsubjecttothesameregulatorycontrolsasskilledtemporaryworkers.Forexample,theydonotneedtobepaidmarketwages,theyarenotlimitedtoemploymentinspecifiedindustriesinwhichthereisashortageofworkers,andtheir
21http://www.aierights.com.au/wp-content/uploads/2015/07/Colleen_Chen___Clare_Ozich__2015___Getting_ahead_or_exploitation_-_a_comparative_analysis_of_the_rise_of_internships_and_collective_actions_to_advance_the_labour_rights_of_interns_.pdf22James,Natalie(WorkplaceOmbudsman),(29August2014)Risk,ReputationandResponsibility,(SpeechtotheAustralianLaborandEmploymentRelationsAssociationNationalConference,GoldCoast,Australia.23AustralianInstituteofEmploymentRights,EmploymentRightsNow,2015,p.29.24Howe,J(6June2016)NEWvisasthreatenAustralianjobs,TheSydneyMorningHerald25Howe,J&Reilly,A(2014),‘Submissiontothereviewofskilledmigrationand400seriesvisaprogrammes’,Public
LawandPolicyUnit,UniversityofAdelaide.
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employersarenotrequiredtodemonstratethattheyhaveattemptedtoemployAustralianworkerstofilltheposition.”
Certainly,itisconcerningthatthereexistssuchasignificantnumberofpeoplelikelytobesubjecttoprecariousemploymentconditions.JoannaHowe,writinginTheDrum,emphasisesthedangersinthissituation:26
“Thepresenceofsuchalargeandvulnerablemigrantworkforce,thatisunregulatedoutsidedomesticlabourlaw,riskscreatinganunderclassofworkerswhoareinvisibletothelaw.”
Discussionquestions:
3. Isemploymentnowthebearerofinequalityandunfairness?4. Whatarethefactorsdrivingincreasinginsecurework?
WHATARETHEIMPLICATIONSOFINSECUREWORKFORWORKERS?Forthemajorityofworkersemployedunderinsecurearrangements,theimplicationsareadverse.TheACTUstates:27
“Insecureworkmeansthatalargesectionoftheworkforcedoesnotshareinournationaleconomicprosperity.Theyhaveinferiorrights,entitlementsandjobsecuritytotheircounterpartsinongoingemployment.Itmakesittoughforworkingfamiliestoplanfortheirfuturewhentheycannotrelyonregularincomes,yethaverisinghouseholdcostsandareshoulderingincreasinghouseholddebt.”
Researchersagreethatlowerwagesarefoundwithinsecurework.DavidWeilcomments:28
“Sincethecontractedactivityisoftenlaborintensive,thepressuretoreducelaborcostissevere.Theresultmaybeviolationsoffederalandstateminimumwageandovertimestandardsandotherworkplacelaws.”
Weilalsobelievesthereareotherfactorsinvolvedindampeningwagesinthisarea:
26JoannaHowe(6May2015)‘Backdoor'workingvisasareleavingmigrantsatrisk,TheDrum,
http://www.abc.net.au/news/2015-05-06/howe-backdoor-working-visas-are-leaving-migrants-at-risk/6448272 27ACTU–AustralianCouncilofTradeUnions,(26August2015)BuildingaBetterFuture-AStrongEconomyforAll.
ResponsetotheNationalReformSummit2015.28Weil,TheFissuredWorkplace
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“Inafissuredworkplace,wage-settingisundertakeninmanydifferentorbitingtierssurroundingtheleadbusiness.Andthattendstolowerhowmuchofthevaluecreatedbytheleadbusinessissharedviathecompensationofthepeoplewhodothework.”
Healthandsafetyisoftenacasualtyofprecariousemployment.Workersareexposedtogreaterphysicalandpsychosocialrisks.AsreportedbyJohnstoneandStewart:29
“Researchclearlydemonstratesthenegativeimpactsthatprecariousworkinfissuredworkplaceshasonthehealthandsafetyofworkers,asmeasuredbyinjuryrates,diseaseandhazardoussubstanceexposures,mentalhealthproblemsandworkhealthandsafetyknowledgeandcompliance.”
Likewise,Weilstates,30
“…splinteringworkactivitiesacrosscompanies,oftenwithambiguouslydefinedresponsibilityforsafety,leadstoholesincoordination.Thiscantriggerworkplaceinjuriesandfatalitiesasdocumentedinavarietyofindustries…”
Therearealsosignificantgenderimplicationsofinsecurework.Womenaremorelikelytobeinsecureemploymentwithramificationsforthegenderpaygapandsuperannuationinequity.JulieWarren,NUWVictorianPresident,commentsontheadverseimpactofprecariousemploymentuponwomenworkers.Indiscussingthisshestates,31
“It’stheworkthattakesusbacktoatimebeforetheeight-hourworkday,beforesickleave,holidaypayandcarersentitlements.It’sthesekindsofjobsthatmorethanhalfofAustralia’sworkingwomenhave.”
Thereisagrowingdivisionbetweenworkersinstableemploymentandthosewithinsecurejobs.Thisappliesnotonlytowagesbutalsotoemploymentconditions.Insecureworkiscreatingtwoclassesofworkers–the‘haves’andthe‘havenots’.QuakandvandeVijselmakethepoint:32
“Theformallabourmarketisseenasbeingdividedbetweenbetter-offworkersprotectedbynationalregulatoryframeworksanda‘legion’ofprecariousworkerswithnojobsecurity.”
29Johnstone,Richard&Stewart,Andrew(2015)Swimmingagainstthetide?Australianlabourregulationandthe
fissuredworkplace.ComparativeLabourLaw&PolicyJournal,37(1),pp.55-90.30Weil,TheFissuredWorkplace.31Warren,J(13March2013)Insecurework:thenewattackonworkingwomen,LipMagazine,online
http://lipmag.com/featured/insecure-work-the-new-attack-on-working-women/32Quak,E&vandeVijsel,A(26November2014)Lowwagesandjobinsecurityasadestructiveglobalstandard,TheBroker,http://www.thebrokeronline.eu/Articles/Low-wages-and-job-insecurity-as-a-destructive-global-standard
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TheProductivityCommissionpredictedtheseadverseemploymentfactorswhenitreported:33
“Withoutregulationandanabilitytoactcollectively,manyemployeesarelikelytohavemuchlessbargainingpowerthanemployers,withadverseoutcomesfortheirwagesandconditions.”
Certainlyitisunlikelythatthoseinprecariousemploymenthaveanyabilitytoactcollectively.Thereisachallengeherefortradeunions.Theunionmovementhastraditionallyfounditdifficult,ifnotimpossible,toorganizecollectivelyamongstworkersinthistypeofemployment.IndiscussingthischallengeBowdensays:34
“ThestandardisedpatternofemploymentconditionsthatcharacterisedAustraliatwentyyearsagohasbrokendown.Thishasexposedeventhebestorganisedsectionsoftheunionmovementtodestructionasemploymentisoutsourcedtolower-costsuppliers.”
Ifthesemarginalizedworkersaretobeabletocollectivelyacttoobtaindecentwagesandconditionsthentradeunionsmustfindnewandinnovativewaystoorganisethisgrowingsectorofworkers.Discussionquestions:
5. Whataretheconnectionsbetweeninsecurework,lowpayandvulnerabilitytoexploitation?
6. Whataretheimplicationsofaworkforcedividedbetweenthosewiththeentitlementsthatattachtosecureemploymentandthoserelyingonprecariouswork?
WHATARETHEIMPLICATIONSOFINSECUREWORKANDGROWINGINEQUALITYFORBUSINESS?Businessandemployerrepresentativeshavelongarguedforworkplaceregulationtoallowformoreflexibleformsofwork.Arguablythepurportedbenefitsforbusinessfromtheuseofinsecureandprecariousemploymentareshort-sighted.Indeed,anumberofnegativeoutcomesforbusinessescanbeidentified.Asdescribedearlier,wheninsecureworkhelpscreateamoreunequalsocietytherearelikelytobeadverseeconomicimplications,includingforconsumerdemand.35AstheIMFhasindicated:
33ProductivityCommission(December2015)ReportoftheInquiryintotheWorkplaceRelationsFramework34Bowden,Bradley,(2009)“TheOrganisingModelInAustralia:AReassessment”,Labour&Industry:ajournalof
thesocialandeconomicrelationsofwork,Vol20,Issue2,Pages138-158.35Seeforexample:IMF,CausesandConsequencesofIncomeInequality:aglobalperspective,2015,https://www.imf.org/external/pubs/ft/sdn/2015/sdn1513.pdf
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“Higherinequalitylowersgrowthbydeprivingtheabilityoflower-incomehouseholdstostayhealthyandaccumulatephysicalandhumancapital…….Increasingconcentrationofincomescouldalsoreduceaggregatedemandandunderminegrowth,becausethewealthyspendalowerfractionoftheirincomesthanmiddle-andlower-incomegroups.”
Consumerconfidenceina‘brand’canbeweakenedordestroyed,inpart,bypublicexposureofexploitativeactionstowardsemployees.Forexample,CorrsChambersWestgarthexplains:36
“The7-ElevenunderpaymentepisodeandallegationsofshamcontractingatMyer/Spotless(amongmanyotherexamples)highlightthesocial,legaland‘brand’risksforbusinessesifthisconductisoccurringintheirsupplychain.”
Thereareotherreasonsthatinsecureemploymentisnotgoodforbusiness.Theskilllevelsandintimatejobunderstandingofemployeesarenotprotectedbysucharrangements.Thequalityoftheworkandservicesrenderedmustsuffer.Theprobabilitythatthebusinesswillbeliableforsomethinggoingwrongincreases.AsJohnstoneandStewartpointout:37
“…arrangements,especiallythoseintroducingthirdpartiesorcreatingmulti-employerworksites,leadtofractured,complex,anddisorganizedworkprocesses,weakerchainsofresponsibilityand‘buck-passing”,andinadequatespecificjobknowledge(includingknowledgeaboutworkhealthandsafety)amongworkersmovingfromjobtojob.”
Employerscanmistakenlybelievethatbyoutsourcingwork,etc.theirbusinessisnolongerlegallyresponsibleforemployees.CorrsChambersWestgarthexplainthatthisisanincorrectassumptionwhichcancostabusinesslargeamounts:38
“Businessessometimesestablishworkforcesthatareprincipallycomprisedofindependentcontractorsandlabourhireworkersonthebasisthatthereisnorequirementtotakereasonablypracticalstepstoensuretheirhealthandsafety.Thatflawedassumptionexposesthecompanytosignificantfinancialpenaltiesforbreach,andplacesitsdirectorsandofficersatpersonalriskofcustodialsentencesandsignificantfines.”
Businessescanalsolosetheirabilitytogoverntheprocessesandoutcomesthattheywant,whentheyengageinsuchemploymentpractices.DavidPeetzpointsout:39
“Contractingisawayofreducingcosts,increasingprofitsandavoidingaccountability,butitisnoteffectiveformaintainingcontrol…“
36CorrsChambersWestgarth(4August2016)2016WorkplaceMid-YearReview.37Johnstone,Richard&Stewart,Andrew,Swimmingagainstthetide?Australianlabourregulationandthe
fissuredworkplace,pp.55-90.38CorrsChambersWestgarth(4August2016)2016WorkplaceMid-YearReview39Peetz,David,(13May2016)Whythedeathofemploymentisadeadidea,TheConversation,
https://theconversation.com/why-the-death-of-employment-is-a-dead-idea-58736
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WhiletheUbermodelofworkmayappearcontemporaryandfashionable,itisnotsustainableforallenterprises.AccordingtoDavidPeetz:40
“BearinmindalsothatmanyUSfirmsfollowingtheUbermodel—likeCherry(carwashes),Prim(laundry),SnapGoods(gearrental),Rewinery(wine)andHomeJoy(homecleaning)—havefailed.”
Indeed,thedisruptionfromthesenewformsofenterprisesisunsettlingformoretraditionalbusinesses.Smallbusinessesinparticularalreadystruggletosurvive.Thechurnofnewenterprisesstartingandendingoutsideexistingregulatoryarrangementsplacesevenmorepressureonbusinessesthatprovidedecentwagesandworkingconditions.Theuseofinsecureemploymenttypesbysomebusinessesinanattempttomaximiseprofitsmayresultinpressureonotherbusinessestodothesame.Theconsequenceisaracetothebottomforworkers’wagesandconditions.ThishasbeennotedbyNatalieJames,theWorkplaceOmbudsman:41
“Itmayalsogivethemacompetitiveadvantageoverlawfuloperatorswithinindustriesthatfrequentlyhavehighlycompetitivetenderingprocesses.Thiscandriveothersinthesectortofollowsuit–pushingthemarketrateoflabourbelowtheminimumlegislatedstandards.”
Theultimateoutcomeofthistypeofemploymentisnotgoodforbusiness.Engagedandhappyemployeesarefarmoreproductiveanddeliverbetteroutcomesfortheiremployers.AsRobertVancestatesinhisbook,EmployeeEngagementandCommitment:42
“Employeeswhoareengagedintheirworkandcommittedtotheirorganizationsgivecompaniescrucialcompetitiveadvantages—includinghigherproductivityandloweremployeeturnover.”
Discussionquestions:
7. Whatdobusinessesgainandwhatcantheylosefromutilisinginsecureformsofemployment?
8. TowhatextentdothenegativeaspectsflowingfrominsecureworkposeathreattotheeconomicandbusinessenvironmentinAustralia?
40Ibid41James,N(WorkplaceOmbudsman),(29August2014)Risk,ReputationandResponsibility,(Speechtothe
AustralianLaborandEmploymentRelationsAssociationnationalConference,GoldCoast,Australia.42Vance,RobertJ,(2006)EmployeeEngagementandCommitment,SHRMFoundation.Alexandria,VA,United
StatesofAmerica.
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WHATARETHEIMPLICATIONSOFTHESETRENDSFORSOCIETY?Thesocialimplicationsofinsecureandprecariousemploymentaremany.Lackofincomestabilityforworkersandtheirfamiliesgiverisetoanumberofissues.Asdiscussedearlier,thereisalsotheproblemoflowerwages.WageinequalityaspromotedbythistypeofemploymentisbecomingpronouncedinAustralia,andhasserioussocialconsequences.IntalkingaboutinequalityACOSShasstated:43
“Akeyfactorworkingagainstareductioninincomeinequalitybetweentheearly1990sandmid-2000swastheincreaseinwageinequalityamongthosewhowereemployed.Wageinequalityhasincreasedoverthepastthreedecades”
AsACOSSsays:“Wecannoteffectivelyresolveourothereconomicandsocialproblemsunlesswedealwiththeinequalitychallengeatthesametime.”Insecureworkimpactsonpeopleslivingstandards,accesstohousing,health,educationandabilitytoengageandcontributetothecommunity.ArecentarticleintheAgehighlightedanadversesocialimpactofthistypeofworkasaresultofasurveybyMEbank.Thisshowedthereisafearofagrowingnumberofmortgagedefaultsinthehousingindustryduetotheeffectsofinsecurework.44Itreadinpart:
“Theshareofhouseholdswhobelievetheywillbeunabletoservicetheirdebtshasrisensignificantly,anewsurveysuggests,asmanystruggletogetenoughhoursatworkandwagegrowthstagnates.”
Theunstableincomethatcomesfrominsecureworkalsoleadstoincreasingpersonaldebts,includingfromhighinterestshort-termloanproviders.Acycleofindebtednesscanleadtobeingtrappedinpoverty.
“Researchshowsthatmostpaydayloancustomersusethemoneytopayforbasicneeds,suchasfoodandrent.It'saworldofpoverty-levelwelfare,wherepeopleshuffleinandoutofinsecurejobs.”45
43ACOSS–AustralianCouncilofSocialServices(22August2014)ACOSSSubmissiontoInquirytotheExtentofIncomeInequalityinAustralia.44Yeates,C(1August2016)Morehomesfearingmortgagedefaults.TheAge.454Corners,GameofLoans,1April2015,http://www.abc.net.au/4corners/stories/2015/03/30/4205225.htm
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ThehealthimplicationsforindividualsinsocietyhavebeendiscussedbyBeyondBlue:46
“Jobinsecurityisawellestablishedriskfactorforpoorhealth.Ithasbeenshowntoincreaseeffectsofpoormentalhealth(particularlyanxietyanddepression),selfreportedillhealth,heartdiseaseandriskfactorsforheartdisease.”
InconsideringthecosttosocietytheACTUreported:47
“Inequalitycoststheeconomythroughincreasedcostsofgovernmentsupportservices,socialandlabourmarketexclusionanddampenedhouseholdconsumption.”
JohnstoneandStewartlikewiseexpressconcernatthenegativeeffectsofwageinequality:48
“Asanumberofinfluentialstudieshavepointedout,theincreasingdegreeofincomeinequalityapparentaroundtheworldthreatenseconomicprogress,notjustsocialcohesion.”
RecentpoliticaleventsaroundtheworldsuchasBrexit,thenominationofDonaldTrumpandthere-emergenceofOneNationhaveledtocommentaryonthealienationandgrowingsenseofinsecurityfeltbymanypeopleleftbehindbycurrenteconomicpolicies.Thehollowingoutofindustriessuchasmanufacturingthatusedtoprovidesecureemploymentandtheresultantlackofeconomicsecurityforthoseleftbehindishavingpoliticalconsequences.GuyStandingarguesthegrowingnumberofpeopleininsecurework,whatheterms“theprecariat”,isalienated,anxiousandaboveallveryangry.Hesuggeststhat“unlesstheprecariatisunderstood,itsemergencecouldleadsocietytowardsapoliticsofinferno.”49Theimplicationsforsocietyandeconomichealthgivecauseforseriousconcern.Certainly,thenegativeeffectsofagrowingdomesticandglobalinequalityofincomewillbecomemorepronouncedwiththeincreaseininsecurework.DiscussionQuestions:
9. Howdoesinsecureworkaffectoursocialrelationsandcommunity?10. Ifwedonotaddresstheprevalenceofinsecureworkanditsconnectiontoinequality,
what,ifany,arethepoliticalramifications?
46BeyondBlue(December2011)InsecureWorkinAustraliaSubmissiontotheindependentinquiryintoInsecureWorkinAustralia,https://www.beyondblue.org.au/docs/default-source/policy-submissions/bw0088-policy-submission---insecure-work-in-australia.pdf?sfvrsn=247ACTU–AustralianCouncilofTradeUnions,(26August2015)BuildingaBetterFuture-AStrongEconomyforAll.ResponsetotheNationalReformSummit201548Johnstone,Richard&Stewart,Andrew(2015)Swimmingagainstthetide?Australianlabourregulationandthefissuredworkplace.ComparativeLabourLaw&PolicyJournal,37(1),pp.55-90.49Standing,Guy,ThePrecariat:TheDangerousNewClass,2011.
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WHATAREAPPROPRIATERESPONSES?TherecentProductivityCommission’sReportontheInquiryintotheWorkplaceRelationsFrameworkstated,50
“Thereareethicalandcommunitynormsaboutthewayinwhichacountrytreatsitsemployees.”
Thisraisesthequestionabouttherightethicalresponsetoinsecureandprecariousemployment.Itiswidelyagreedthatsomekindofactionisneededtoprotectworkers,andtolimittheadverseeffectsofthistypeofemployment.AsJoannaHowesaysinrelationtomigrantworkers:51
“Onething'sforsure:thestatusquoisnotworking….”Therearediverseviewsontheexactnatureoftheappropriateresponse.Weconsiderfourareasofresponse:regulation;collectiveaction;alternativemeansofensuringeconomicsecurity;andbusinessandgovernmentleadership.RegulationTheAIERbelievesthatthecurrentworkplacerelationssystemisnotsufficienttoadequatelyandfairlyaddresstheproblemofgrowinginsecurework.Improvedgovernmentregulationoftheworkplaceisasolutionsuggestedbymany.DavidPeetzarguesthat“thecoreoftheproblemistheneedtofindwaystomakecapitalatthetopofthefoodchainaccountable.”52Thereisgrowingrecognitionthatanysolutiontotheexploitativeaspectsofinsecureworkwillrequireacomprehensivelegislativeresponse.TheAustralianCharterofEmploymentRightsprovidesinPrinciple8,FairMinimumStandards,that:53
“Everyworkerisentitledtotheprotectionofminimumstandards,mandatedbylawandprincipallyestablishedandmaintainedbyanimpartialtribunalindependentofgovernment,whichprovideforaminimumwageandjustconditionsofwork,includingsafeandfamily-friendlyworkinghours.”
50ProductivityCommission(December2015)ReportoftheInquiryintotheWorkplaceRelationsFramework51Howe,Joanna(6May2015)Backdoor'workingvisasareleavingmigrantsatrisk52Peetz,David,(13May2016)Whythedeathofemploymentisadeadidea,TheConversation,https://theconversation.com/why-the-death-of-employment-is-a-dead-idea-5873653TheAustralianInstituteofEmploymentRights,(2007)TheAustralianCharterofEmploymentRights
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TheAIERhasarguedthatAustralianlabourlawneedstoberecastsothateveryworkerhasaccesstoasuiteofminimumentitlementsandrights;thatthereshouldbenoabilitytocontractoutoftheseentitlementsandrights;andthattheseentitlementsandrightsbebasedontheAustralianCharterofEmploymentRights.InoursubmissiontotheIndependentInquiryintoInsecureWork,weproposedatestfordeterminingwhoisaworkerforthepurposesofhavingaccesstotheentitlementsandrights.54ACOSShasnotedthatlabourmarketregulationincludingminimumwagesandemploymentsecurityisessentialtoameliorateincomeinequality.55OneofthekeyrecommendationstotheNationalReformSummitfromtheACTUis:56
“Improvetheregulationofthelabourmarkettoprovideallworkerswithauniversalsetofprotectionsandentitlementsandjobsthatworkersandtheirfamiliescanrelyonandwhichcanbeenforcedagainsttheireffectiveemployer,theirhostandanysupplychainparticipant…”
TheChieflyResearchCentre’sreportoninequalitynotesthat:
“Therearetworeasonstothinkaboutfutureemploymentprotectionsnow.Firstly,thecontinued growth in services and technology is likely to drive increases in alternativeformsofwork.Secondly,there isevidencethatthoseatthehigherendofthe incomedistribution canmove seamlessly between standard and non-standard work whereasthoseatthelowerendmaynot.”
Thereportwentontosupport“moreconsistentrightsandenforcementacrossallformsofworkaslabourmarketschange.TheadoptionofsuchaprinciplesapproachshouldaimtobuildonandadaptexistingstandardsintheAustralianworkplacethatarecurrentlyappliedinconsistentlyoractivelyavoidedinsomecases.”Whendiscussingtheexploitationofmigrantworkers,JoannaHowestates“…thisisasystemicproblemrequiringastrongandnewregulatoryresponse.” 57Sheargues it requiresreformofour immigration system as well as the work of the FairWork Ombudsman in enforcing therightsoftemporarymigrantworkerswithoutjeopardisingtheirimmigrationstatus.TheIndependentInquiryintoInsecureWorkmadeanumberofrecommendationsforimprovedregulationderivedfromtheprincipleofuniversalityinlabourlaw.ItrecommendedforexampleexpandingtheNationalEmploymentstandardstocreateinclusiveminimumstandardsforall
54http://www.aierights.com.au/wp-content/uploads/2015/12/AIER-Submission-to-the-Insecure-Work-Inquiry-190112.pdf55ACOSS–AustralianCouncilofSocialServices(22August2014)ACOSSSubmissiontoInquirytotheExtentofIncomeInequalityinAustralia.56ACTU–AustralianCouncilofTradeUnions,(26August2015)BuildingaBetterFuture-AStrongEconomyforAll.ResponsetotheNationalReformSummit201557Howe,Joanna(6May2015)Backdoor'workingvisasareleavingmigrantsatrisk.
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employeesandredefining“employees”tocapturemoreworkers;alicensingsystemforthelabourhireindustry;thepowerforFairWorkAustraliatogrant“SecureEmploymentOrders”anddeterminejointemploymentrelationships;andredefiningcasualworktoberestrictedtoirregular,intermittentorveryshort-termwork.Alongsideadebateonre-orientingworkplaceregulationtocaptureandprovideentitlementsandrightstoallworkers,thereareotherregulatoryresponsestoconsider.TheACTUiscurrentlyarguingforcasualconversionclausestobeincludedinawards.Casualconversionclauseswouldprovideanavenueforcasualemployeeswhohavebeenemployedforatleast6monthstorequestatransfertopermanentfull-timeorpart-timeemployment.Currentlysuchclausesexistinonlyafewawards.CollectiveactionWorkplacerelationsatitsheartisabouttherelationshipbetweencapitalandlabour.Acoreprincipleofindustrialrelationsisthatworkersmusthavetherightandthecapacitytoorganisecollectivelyagainstthepowerofcapital.Soalongwithregulationbythestateofminimumworkingconditions,AIERargueswealsoneedanewapproachtohowworkerscanorganiseandexercisecollectivepowerintheageofinsecurework.Freedomofassociationwasthetopicoflastyear’sRonMcCallumDebateandakeyprincipleoftheCharterofEmploymentRights.InthatdiscussionMicheleO’Neil,SecretaryoftheTextile,ClothingandFootwearUnionofAustraliaarguedfora“newcollective”toaddressthechangingnatureofworkanditsincreasingfragmentation.58Oneofthereasonsthatadecliningshareofproductivitygrowthhasbeensharedbyworkersisduetothedeclineoftheunionmovement.Therearemanyinterlinkedfactorsforthedeclineinorganisedlabourbutoneofthemostsignificantisthatthedestructionoflabour’sbargainingpowerwasattheheartofthepoliticalprojectofthelast30yearsnowknownasneo-liberalism.AsPaulMasonarguesinhisbook,Postcapitalism:
“Becausetoday’sgenerationseesonlytheoutcomeofneoliberalism,itiseasytomissthefactthatthisgoal–thedestructionoflabour’sbargainingpower–wastheessenceoftheentireproject:itwasameanstoalltheotherends.Neoliberalism’sguidingprinciplewasnotfreemarkets,norfiscaldiscipline,norsoundmoney,orprivatisationandoffshoring–notevenglobalisation.Allthesethingswerebyproductsorweaponsofitsmainendeavour:toremoveorganisedlabourfromtheequation.”
Researchpublishedin2015bytwoIMFresearchershaspointedstronglytofallingunionmembershipratesasasignificantcontributortoinequalityinincomesharesinsocieties:
Whilecausalityisdifficulttoestablish,thedeclineinunionizationappearstobeakeycontributortotheriseoftopincomeshares.Thisfindingholdsevenafteraccountingfor
58http://www.aierights.com.au/2015/10/the-2015-ron-mccallum-debate-a-summary/
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shiftsinpoliticalpower,changesinsocialnormsregardinginequality,sectoralemploymentshifts(suchasdeindustrializationandthegrowingroleofthefinancialsector),andincreasesineducationlevels…Wealsofindthatdeunionizationisassociatedwithlessredistributionofincomeandthatreductionsinminimumwagesincreaseoverallinequalityconsiderably.59
TheOECDcommentedinitsEmploymentOutlook2004[Chapter3]:
Highuniondensityandbargainingcoverage,andthecentralisation/co-ordinationofwagebargainingtendtogohand-in-handwithloweroverallwageinequality.Thereisalsosome,albeitweaker,evidencethatthesefacetsofcollectivebargainingarepositivelyassociatedwiththerelativewagesofyouths,olderworkersandwomen.Ontheotherhand,thechapterdoesnotfindmuchevidencethatemploymentofthesegroupsisadverselyaffected.60
Risinginequalityandinsecureandprecariousworkisbothasymptomofthedeclineoforganisedlabourandabarriertoorganisingworkerscollectively.TheAIERhaspreviouslyarguedthatchangestocollectivebargainingtoallowforbargainingacrossindustriesandalongsupplychainswillbenecessary.WenotetheChieflyResearchCentreagreesthat“morecouldbedonetoexpandtheavailabilityofcollectivebargainingacrossthesectors,particularlyasthestructureoftheeconomychanges.Forinstance,theFairWorkActemphasisesenterprise-levelcollectivebargaining;thismaybeinadequateasworkarrangementschange.”Incontrast,theindustrialrelationsbillscurrentlybeforetheparliamentaredesignedtoevenfurtherrestrictworkersactingcollectivelytopushbackanddemanddecentworkingconditions.Whetheritistheunionmovementasitcurrentlyexistsornewformsofcollectiveactionbyworkerswithadifferentidentity,addressingtheinequalitythatresultsfrominsecureworkwillrequirecollectiveactiononthepartofworkers.EconomicsecurityJohnBuchananhasarguedthat“limitedprivatesectorjobgrowthanddeterioratingjobsecurityaremakingemploymenteconomicallyandsociallyunsustainable”.Wearealsofacingthechallengeoftechnologyreplacingmuchpaidlabournowperformedbypeople.Thereareestimatesthatoverthenext10to15years,nearly40percentofjobsareatriskofautomation.61
59FlorenceJaumotteandCarolinaOsorioBuitron,POWERfromthePEOPLEFinance&DevelopmentMarch2015,pp29-31.ThisarticlesummarisesaforthcomingpaperfromtheseIMFresearchersonthissubject.60OrganizationforEconomicCooperationandDevelopment(OECD),OECDEmploymentOutlook,OECDParis,2004,p.13061SeeProductivityCommissionResearchPaper,“DigitalDisruption:Whatdogovernmentsneedtodo?”,June2016,http://www.pc.gov.au/research/completed/digital-disruption/digital-disruption-research-paper.pdf
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Ifemploymentcannolongerguaranteeeconomicsecurity,whatotheroptionsneedtobeconsidered?Thepost-warwelfarestatehasbeenunderminedandguttedbytheneoliberalpoliciesofthelastthreedecades.Thelowratesofsocialsecuritypaymentsandtheconditionalitythatnowappliestounemploymentbenefitsmeansthereisnolongerauniversalsocialsafetynetthatprovideseconomicsecurity.Theunemploymentbenefit,Newstart,iswellbelowthepovertyline.WhileevenpeakbusinessgroupshavecalledongovernmentstoincreaseNewstart,thereisnopoliticalwillinatimedominatedbyrhetoricofcuttinggovernmentspendingtobalancethebudget.Theapproachofourcurrentgovernmentisonlymakingcircumstancesevenworse.ItisdemonstratingnoinclinationorcapacitytoaddressgrowingeconomicinequalityinAustralia.Therecentlyannouncedlatestroundofwelfarereformswillfeedacycleofeconomicinsecurityinaneconomythatisnotcreatingdecentwork.OneoptionthatisgainingmomentumaroundtheworldinaddressingeconomicsecurityintheageofprecariousworkistheconceptofaUniversalBasicIncome.UniversalBasicIncomeisanunconditionalcashpaymenttoindividualssufficienttomeetbasicneeds.FinlandwillbeintroducingsuchaschemenextyearandtrialsareplannedincommunitiesintheNetherlandsandCanada.62Argumentsforauniversalbasicincomehavesupportonboththeleftandrightofpolitics,althoughtheimplementationofanysuchaschemewilldetermineifitworkstoguaranteeeconomicsecurityandrelievetheharmfuleffectsofeconomicinequality.Previousstudiesoftrialsofsimilarschemehavedemonstratedtheyencouragework,providestabilityandleadtobetterhealthandsocialoutcomes.63AsGodfreyMoaseargues:
“Universalincomeprovidesthematerialbasisforafullerdevelopmentofhumanpotential.Socialenterprises,cooperativesandsmallbusinessescouldbestartedwithoutparticipantsworryingwherethenextpaychequewouldcomefrom.Artistsandmusicianscouldfocusontheirwork.Moreofuswouldbefreedtovolunteerourtimeforthepublicgood.Someworkerswouldnolongerbefacedwiththeunenviablepositionofhavingtochoosebetweensupportingtheirfamiliesanddegradingtheirlocalenvironment.”64
62http://www.abc.net.au/radionational/programs/themoney/money-for-nothing-explaining-appeal-universal-basic-income/766051463http://www.smh.com.au/money/should-we-pay-everyone-a-universal-basic-income-20160606-gpcmba.html64https://overland.org.au/2013/06/for-a-universal-minimum-income/
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BusinessandgovernmentleadershipMostimmediately,bothbusinessandgovernmentcouldshowleadershipinaddressinginsecurework.Government,atalllevels,boththroughitsownemploymentpracticesbutalsothroughitsprocurementandfundingofserviceshastheabilitytosetstandardsofemploymentsecurity.TherolloutoftheNationalDisabilityInsuranceSchemeoffersanexampleofhowthedesignofaservicefundedbyGovernmentbutdeliveredbytheprivatesectorcanpromoteprecariouslowpaidwork.
ProfessorSaraCharlesworthandDrFionaMacDonaldhavenotedinthedirectcaresectortheindividualisingand‘marketising’servicearrangements,highlevelsofcasualisation,workingtimefragmentationandunderemploymentandanecdotalevidenceofnewformsoflabourhireagencies.Theyargue:
“Thelikelyconsequencesforlow-paidcareworkersarefurtherfragmentationofemploymentarrangements,undercuttingofminimumpayandconditionsandfurtherdistancingofthesevulnerableworkersfromcollectiverepresentationandsourcesofknowledgeabouttheiremploymentrights.”
Governmentscandesignsuchschemesdifferentlyandrequireserviceproviderstoprovidesecureanddecentstandardsofwork.Businesses,too,haveachoicewhenitcomestostructuringtheiremploymentrelationshipsandlargecorporationsinparticularcanworktoensureaccountabilityofsupplychainswhenitcomestoworkingconditions.JohnBuchananarguesforasocial(orproductivity)coalitioncommittedtoabetteralignmentofrisksandrewardsineconomiclife.Hesuggeststhat“aprogressiveproductivitycoalitionwouldneedtoinvolveandgivevoicenotjusttoworkers,employersandgovernmentbutalsoNGOscoveringthedisadvantagedandlabourmarketintermediaries.”TheAIERandourCharterofEmploymentRightsputsemphasisoncollaborativeapproachestodevelopingfairanddecentworkplaces.Webelievethatbusiness,workersandgovernmentcanworktogethertoaddressinsecurityofworkandeconomicinequality.DiscussionQuestions:
11. Whatarethemosteffectivewaysofaddressinginsecureandprecariouswork?12. Ifemploymentwillnolongerprovideeconomicsecurity,shouldweconsiderother
options?
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CONCLUSIONAllthesepossibleresponsesareneitherexclusivenorcomprehensive.Effectiveresponsesarelikelytobeamixofalloftheaboveandmore.WehaveprimarilyfocusedontheideasmostdirectlyrelevanttotheworkoftheAIERandacknowledgethatimprovementsineducationandtraining,economicpoliciesthatencouragethecreationofdecentjobs,taxreform,improveduniversalsocialsecurityetc.areallimportantissuesthattouchonwork,insecurityandinequality.InsecureandprecariousworkinAustraliarequirestobeaddressedinajust,fairandeffectivemannertominimisethedamagetoindividuals,theirfamiliesandsociety.
BIBLIOGRAPHYACOSS–AustralianCouncilofSocialServices(22August2014)ACOSSSubmissiontoInquirytotheExtentofIncomeInequalityinAustralia.ACTU–AustralianCouncilofTradeUnions,(26August2015)BuildingaBetterFuture-AStrongEconomyforAll.ResponsetotheNationalReformSummit2015ACTU–AustralianCouncilofTradeUnions,(16May2012)TheReportoftheIndependentInquiryintoInsecureWorkinAustralia(TheHoweInquiry)LivesonHold:UnlockingthePotentialofAustralia’sWorkforceAIER-TheAustralianInstituteofEmploymentRights,(2007)TheAustralianCharterofEmploymentRightsBeyondBlue(December2011)InsecureWorkinAustraliaSubmissiontotheindependentinquiryintoInsecureWorkinAustralia,https://www.beyondblue.org.au/docs/default-source/policy-submissions/bw0088-policy-submission---insecure-work-in-australia.pdf?sfvrsn=2Bowden,B(2009)“TheOrganisingModelInAustralia:AReassessment”,Labour&Industry:ajournalofthesocialandeconomicrelationsofwork,Vol20,Issue2,Pages138-158Bornstein,J(28July2016)Lawreformscancurbexploitationofthelow-paid.TheAge.CorrsChambersWestgarth(4August2016)2016WorkplaceMid-YearReview,OnlineDavis,M(22September2010)Unionsfacefightonanewfront,SydneyMorningHerald.Howe,J(6June2016)NewvisasthreatenAustralianjobs,TheSydneyMorningHerald
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Howe,J(6May2015)Backdoor'workingvisasareleavingmigrantsatrisk,TheDrum.Howe,J&Reilly,A(2014),‘Submissiontothereviewofskilledmigrationand400seriesvisaprogrammes’,PublicLawandPolicyUnit,UniversityofAdelaide.ILO-InternationalLabourOrganisation(19May2015)News:ILOwarnsofwidespreadinsecurityinthelabourmarket,http://www.ilo.org/global/about-the-ilo/newsroom/news/WCMS_368252/lang--en/index.htmJames,N(WorkplaceOmbudsman),(29August2014)Risk,ReputationandResponsibility,(SpeechtotheAustralianLaborandEmploymentRelationsAssociationnationalConference,GoldCoast,Australia.Johnstone,R&Stewart,A(2015)Swimmingagainstthetide?Australianlabourregulationandthefissuredworkplace.ComparativeLabourLaw&PolicyJournal,37(1),pp.55-90.NUW-NationalUnionOfWorkers,(2014)EqualityAndTheRiseOfInsecureWorkhttps://www.nuw.org.au/noc2014/inequality-and-the-rise-of-insecure-workPeetz,D(13May2016)Whythedeathofemploymentisadeadidea,TheConversation,https://theconversation.com/why-the-death-of-employment-is-a-dead-idea-58736Pikkety,Thomas,(2014)CapitalintheTwenty-FirstCentury.ProductivityCommission(December2015)ReportoftheInquiryintotheWorkplaceRelationsFrameworkQuak,E&vandeVijsel,A(26November2014)Lowwagesandjobinsecurityasadestructiveglobalstandard,TheBroker,http://www.thebrokeronline.eu/Articles/Low-wages-and-job-insecurity-as-a-destructive-global-standardStanding,Guy,(2011)ThePrecariat:TheDangerousNewClass.Stigliz,Joseph,(2012)ThePriceofInequality.Vance,RJ(2006)EmployeeEngagementandCommitment,SHRMFoundation,Alexandria,VA,UnitedStatesofAmericaWarren,J(13March2013)Insecurework:thenewattackonworkingwomen,LipMagazine,http://lipmag.com/featured/insecure-work-the-new-attack-on-working-women/Weil,D(2014)TheFissuredWorkplace,HarvardUniversityPress,CambridgeMassachusetts
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