Inquiry Into Labour Hire and Insecure Work Industrial Relations Victoria

Mr Anthony Forsyth Chair Inquiry into Labour Hire and Insecure Work Industrial Relations Victoria Department of Economic Development, Jobs, Transport and Resources 121 Exhibition Street Melbourne VIC 3001 Via email: l a bo u r hire. i n q uiry @ eco d ev. v i c .gov .au Thursday 24

March 2016

Dear Mr Forsyth,

RE: SUPPLEMENTARY SUBMISSION TO THE INQUIRY INTO LABOUR HIRE AND INSECURE WORK

Thank you for allowing Victorian Trades Hall Council (VTHC) the opportunity to provide further feedback via a supplementary submission to the Inquiry into Labour Hire and Insecure Work.

VTHC would also like to thank you for the opportunity to present at the recent inquiry hearings. The hearings were of critical importance to ensure the voices of workers were heard directly.

In our supplementary submission, VTHC would like to only briefly address some of the questions raised during the inquiry hearings. We would also like to present to the Inquiry a final small number of submissions made by workers via our online portal. We hope these late submissions will be taken into account.

I understand a number of submissions have been made by affiliate unions and our comments should in no way supersede those made by affiliates. I would particularly note the work of National Union of Workers (NUW) and refer you to their supplementary submission for further details regarding the implementation of a labour hire regulatory scheme.

“Bad apples” argument A number of employers and/or employer associations argued during the hearings that, although they acknowledged there was illegal activity in the labour hire industry, it was only a few bad apples and that regulating the system would not remove that already illegal activity. VTHC rejects this argument. Indeed their argument actually speaks to the need for regulation and monitoring of a labour practice that is murky at best and both illegal and dangerous at worst. Ample evidence has been presented which suggest the labour hire sector is made up of more than just a handful of dodgy businesses. There are systematic failings that mean employers are able to avoid their obligations to employees at every turn.

There is a clear need for regulation of the labour hire industry – but it must also be coupled with a monitoring and enforcement wing to uphold the new regulatory requirements.

“Conflicting legislation” argument Again, a number of employers and/or employer associations argued during the inquiry hearings that introducing state legislation, regarding labour hire industry, for what is mainly a federal jurisdiction would create conflict. VTHC rejects this argument.

State and federal legislation exists in the same domain across a number of sectors and operates as complimentary not conflictual. Practical examples include Long Service Leave entitlements (under the state Long Service Leave Act 2005) and occupational health and safety regulations.

The Australian Nurses and Midwifery Federation (ANMF) were able to provide a concrete example of industrial legislation operating at both state and federal level, without conflict, namely the establishment of nurse-patient ratios (at a state level legislation) working in complementary fashion to IR legislation for nurses’ enterprise bargaining agreement, which is a federal mechanism.

Additional submissions from workers As noted earlier, a number of late submissions from workers were made to the inquiry via our online submission portal. These submissions are attached. We hope they will be taken into consideration.

If there are any matters you would like to discuss further, please do not hesitate to contact Danae Bosler on my office on (03) 9659 3583 or dbosler @ v t h c .org.au

Thank you for your consideration.

Yours Sincerely,

Luke Hilakari Secretary

LH: DB / Ref: 59.657 R y an Fitzr o y Penrith (received via VTHC)

Metal fabrication Employed through a labour hire agency by Ranstad @ Stramit

Pay and Conditions Health and Safety Personal Impact Financial Security

Paid Fair: false Safe work: false Predictable Roster: false Bills ok: false

Legal Employment: false Worksafe: true Childcare: false Accommodation ok: false

Could speak up: false Could speak up: false Leave: false Future secure: false

Solution

Jail on moral grounds every labour hire company owner. And make a registry off all the office staff that work for labour hire companies. And not let them work in positions were they might be able to paper work exploit anyone in Australian; e.g. insurers, contact services like mobile phone contracts. Story

I was employed through a labour hire agency less than 3 months ago. The full time workers were getting paid the same as me and I was working the same hours and same job as the full timers but without the security of being full time I hurt my back at work and then as soon as I got my clearance letter to go back to work I was told there's no more work. When I went to pick up my tools there was a guy I went to TAFE with he had told me he started the Thursday and worked Friday. And he told me this on the Monday when I picked up my tools. On the Thursday and Friday, Ranstad was still telling that I was going back but had really replaced me with the guy I went to TAFE with I have developed depression and anxiety. I have bad mood swings … I see no prospect for any good future. My partner and I are holding off having kids as there is no full time work and we are in our late 20s. The fact that I spent 4years getting my trade as a boilermaker and a bunch of suits can undermine all of my hard work makes me feel powerless in my life Not having any future financially. And all because of an exploited loop hole that everyone but blue collar is in on.

Not knowing how long I’ll last before I break down. This happened at Stramit, Penrith when I was employed by Ranstad. This happened in the Metal fabrication industry. Jail on moral grounds every labour hire company owner. And make a registry off all the office staff that work for labour hire companies. And not let them work in positions were they might be able to paper work exploit anyone in Australian e.g. insurers, contact services like mobile phone contracts.

Submission URL: h ttp s : / / ww w . s e c u re j ob s v ic. o r g .a u / e n /u n i o n s /1/rec s /6 6 9 Ano n y m ous (received via VTHC)

Dairy Food Manufacturing Employed through a labour hire agency by Manpower @ Parmalat Bendigo

Paid Fair: true Safe work: true Predictable Roster: false Bills ok: true

Legal Employment: false Worksafe: false Childcare: false Accommodation ok: true

Could speak up: true Could speak up: true Leave: true Future secure: false

Solution

I would offer the casuals a choice if after three months they would like to continue as is or go onto a permanent roster with a set minimum hours and entitlements. I would also like to see more job flexibility and the addition of part time positions as well as full time ones. Story

I was employed through a labour hire agency in my current job. My pay for the hours I worked has always been correct. However, I fell pregnant. Had been with the company for over twelve months at this time. I had been getting three shifts a week on average for a few months, as soon as I told my labour hire employer that I was pregnant. I got five shifts for the remaining six months of my pregnancy. Their excuse was that work had gone quiet... I feel I was discriminated against and lost work because I was pregnant.

I had my baby and started work again, back to a few shifts a week. After I announced my pregnancy, my workplace was not informed about the safety of the chemicals I was using and if it was safe for pregnant women to be exposed too. This risking my health and safety.

I am a mother of young children. I have to rely on family for my childcare requirements as day-care operating hours are 7:30am to 6pm. These day-care hours don't help with Night or Afternoon shifts on an 8 hour roster. Really pushes you for time for an 8am start too for dayshift. Also 12 hour shifts are 6am to 6pm. Day-care can’t help me with these hours either. So managing my family is a daily juggle due to insecure work.

I am lucky that I have my partner’s income we can rely on for these things. My income is a supplement for this. However if roles were reversed I really don't know how we would survive on such an unpredictable roster/ income. Therefore food, mortgage and lifestyle would be seriously compromised. This happened in the Dairy Food Manufacturing industry.

I would offer the casuals a choice if after three months they would like to continue as is, or go onto a permanent roster with a set minimum hours and entitlements. I would also like to see more job flexibility and the addition of part time positions as well as full time ones.

Submission URL: h ttp s : / / ww w . s e c u re j ob s v ic. o r g .a u / e n /u n i o n s /1/rec s /6 6 7 Ano n y m ous in Australia (received via VTHC)

Cleaning

Directly employed casual by various casual jobs @ various sites

Paid Fair: true Safe work: true Predictable Roster: false Bills ok: false

Legal Employment: true Worksafe: true Childcare: true Accommodation ok: true

Could speak up: false Could speak up: true Leave: false Future secure: false

Solution

If I was PM I'd give everyone a living wage. Alternatively I would stop giving Newstart to casual workers. Instead I would give the Newstart to those companies who can't afford to pay full-time wages, so they can pay wages with it. That way employees get to hold their head up working a proper job and earning a real wage - instead of working casual and being seen as a 'leaner' - and the employers who get the welfare can have the stigma! Story

I was a directly employed casual less than a year ago. Being kept as casual even though they said everyone gets offered full-time after 3 months. Shifts cancelled at the last minute. Asked to come in for 5 hours but sent home after 2 hours. No partner to help with bills. No money for food after paying rent. Going to work hungry. Living on only toast for a whole week. Loss of muscle tone needed for hard work due to insufficient nutrients. Having cold showers to get the gas bill down. Running out of money for transport so walking to work in the rain. Becoming socially isolated - staying by the phone in case work comes up. Going into hiding from friends to avoid cost of social activities. Being overlooked because 457's are younger. Stressed to the max not knowing if there'd work next week. Anxious about getting behind in rent and risk of homelessness. Huge sense of sadness knowing you'll never buy a home or save enough for retirement. Loss of confidence and self-esteem due to having to apply for Newstart. Knowing society sees you as a leaner if you're on welfare. Worried that ongoing job insecurity might cause mental health problems. This happened at various sites, in Australia when I was employed by various casual jobs. This happened in the cleaning industry. If I was PM I'd give everyone a living wage. Alternatively I would stop giving Newstart to casual workers. Instead I would give the Newstart to those companies who can't afford to pay full-time wages, so they can pay wages with it. That way employees get to hold their head up working a proper job and earning a real wage - instead of working casual and being seen as a 'leaner' - and the employers who get the welfare can have the stigma!

Submission URL: h ttp s : / / ww w . s e c u re j ob s v ic. o r g .a u / e n /u n i o n s /1/rec s /6 6 5 Ano n y m ous Melbourne (received via VTHC)

Hospitality / Gaming / Racing Directly employed casual

Paid Fair: true Safe work: false Predictable Roster: false Bills ok: false

Legal Employment: true Worksafe: false Childcare: false Accommodation ok: false

Solution

Legislate for the increase in permanent part-time and full time positions for major companies with a large casual workforce. Increase protections for the casual worker- make staff and corporates aware of their rights and RESPONSIBILITIES- create an awareness of where to go if you are being treated unfairly, with effective responses. Do NOT decrease penalty rates. ***Make workplace inspections REGULAR by OHS officers. ***Make possible for staff to meet anonymously with OHS officers to raise concerns at their workplace. ***OHS inspectors to visit workplace and be able to speak anonymously / interview staff. Increase compliance fines/shutdowns for unsafe workplaces e.g. $ fine proportionate to company fiscal capacity. Story

I was a directly employed casual in my current job. Often staff will be signed off before completing their work- e.g. will be signed off at 7.15pm, but then asked to take laundry to basement on way to staffing office after signing time sheet, resulting in an extra 15minutes of lost pay. Often asked to take 30min break before 1 hour of work has even passed e.g. 10 hour shift- asked to take break after 45mins, then work almost 9hours straight. Working conditions often not safe- hospitality. Higher management do not address these concerns even after having them raised in end of year survey. Staff have slipped and injured themselves due to not adequate non slip matt in production kitchens. Staff regularly burn their hands on extremely hot plates.

Staff are exhausted- 30minute break for 10hour shift not adequate. There is not enough space allocated for kitchen/dishwashing staff and they are constantly having to work through commercial quantities of dishes in an extremely short time frame as well as inadequate and unsafe amount of space. e.g. door to bar is through the tiny dishwashing area- results in people crashing into each other with trays of glassware etc. as it is an EXTREMLEY high traffic area - MUCH too small for the volume of staff and objects. Staff expected to carry/lift objects / items etc. that are too heavy for even 2 people to lift- e.g. entire rack of glassware, 6x full trays of cutlery, entire commercial bag of linen.

Hospitality is weekend work and therefore results in losing out/missing family and friends’ celebrations, birthdays and rest time. Unable to attend special events. Also, shifts are irregular and often only offered the day before, leaving staff having to cancel other plans or miss out on a shift. It is extremely stressful not having income security as it results in an anxiety ridden lifestyle. It subsequently means that we are having to constantly save our pay in case we do not get offered any for a while, meaning that we are unable to budget properly or accurately.

It affects Centrelink benefits, as you are unable to estimate the amount of hours that you may be offered in any given fortnight- it could be 0 for 2months. It means that we are unable to gain mortgages, car loans and credit cards without significant issues. It means that we are essentially unable to reject shifts even if sick, injured or otherwise unavailable as there is no income or job protection. This happened in the Hospitality / Gaming / Racing industry. Legislate for the increase in permanent part-time and full time positions for major companies with a large casual workforce. Increase protections for the casual worker- make staff and corporates aware of their rights and RESPONSIBILITIES- create an awareness of where to go if you are being treated unfairly, with effective responses. Do NOT decrease penalty rates. ***Make workplace inspections REGULAR by OHS officers. ***Make possible for staff to meet anonymously with OHS officers to raise concerns at their workplace. ***OHS inspectors to visit workplace and be able to speak anonymously / interview staff. Increase compliance fines/shutdowns for unsafe workplaces e.g. $ fine proportionate to company fiscal capacity.

Submission URL: h ttp s : / / ww w . s e c u re j ob s v ic. o r g .a u / e n /u n i o n s /1/rec s /6 6 4 Ano n y m ous Melbourne (received via VTHC)

Government policy Contracting with an ABN but to one employer only

Paid Fair: false Safe work: true Predictable Roster: true Bills ok: true

Legal Employment: false Worksafe: true Childcare: true Accommodation ok: true

Solution

More money/responsibility for the Ombudsman to actually do something - investigate, fine people, embarrass employers that do the wrong thing. Not just have a phone line where they tell you to talk about it with your boss or do a negotiation on the phone with them (I have done both, 2 different jobs with issues). 'Casual' in some places is called "zero hour contract" and that is what it is - no guarantees. Maybe we should have minimum hours guaranteed? More full-time and part-time (set hours) jobs, where you know where you stand. Easier access to top-up payments (like the dole), which is a giant hassle to get and you are treated like a criminal - sometimes you just get no hours, but you can't go for another job because you've promised 100% availability to your casual job - they can have you anytime. Story

I was contracting with an ABN to one employer only more than a year ago. I was employed as a sole trading contractor to do fulltime temporary office work for a Victorian Government department; i.e. the department was sham contracting me. I had regular hours and a job to do, expected to turn up 9-5, go to team meetings etc., but then billed my time at an hourly rate they made up when they offered the 'job'. I did it to get work, but felt taken advantage of when I realised it was a sham arrangement and illegal. I did this for only a few months of full-time work, but another person was on the same deal for years. When I politely questioned it with the manager (after trying to do my tax and figuring out it was dodgy) HR was called down and I was asked to leave immediately and confidentially.

I was smart enough and had experience to know what rate/grade I should have been paid on the public service scale and asked for that, and they gave me a settlement deal to keep quiet. The Fair Work Ombudsman was no use - they just say to 'talk to your manager first' - which leads to losing your job, or at least really, really annoying them. Of course; they have the power.

It was absolutely amazing (to me, family and friends) that a state government department would be doing this, and the lower managers didn't even realise it was wrong. From their perspective (and they told me this) it was so they didn't have to spend money from the salary/staff account, but could use the 'contract' budget. Even though I was on this deal and not like a regular employee, I felt like I was 'asking too much' to take a few days to go interstate and visit family. I was charging an hourly (low) fee (lower than a casual rate) and was not actually getting leave pay. If I'm a contractor, I should be able to do what I want, but they treated me like I was an employee. I did it anyway.

Working on contracts and casual jobs means you never want to spend much money because you don't know if you'll be without work the next week/month/6 months. You're always being careful and saving what you can. You make decisions like: 'I will not pay for any exercise (gym, dance classes, swimming pool entry); I'll just walk or ride outside'. 'I won't go out; I'll just spend $5 on a block of chocolate and enjoy myself with that instead.... also, it will fill me up with kilojoules for the day so I won't need to spend money on other food'. So it can be unhealthy and socially isolating when you take it to the extreme.

Many of the other casuals I've worked with (in a different job) had husbands who brought in the main money for the household, so they weren't as worried or interested in asking for better rights, but I support myself completely. The sham contract was in Melbourne. This happened in the Government policy industry, with a state government department the culprit.

What's needed is more money/responsibility for the Workplace Ombudsman to actually do something: investigate, fine people, embarrass employers that do the wrong thing. Not just have a phone line where they tell you to talk about it with your boss or do a negotiation on the phone with them (I have done both, 2 different jobs with issues). 'Casual' in some places is called a "zero hour contract" and that is what it is - no guarantees. Maybe we should have minimum hours guaranteed? And more full-time and part- time (set hours) jobs, where you know where you stand. Easier access to top-up payments (like the dole), which is a giant hassle to get and you are treated like a criminal - sometimes you just get no hours, but you can't go for another job because you've promised 100% availability to your casual job - they can have you anytime. The concept of a 'living payment' that some countries are introducing to pay to everyone (not just un-/under-employed) would be great - then there would be less of the situation where you are 100% reliant on how many hours you get next week.

Submission URL: h ttp s : / / ww w . s e c u re j ob s v ic. o r g .a u / e n /u n i o n s /1/rec s /6 6 3 Ano n y m ous (received via VTHC)

Teaching Employed through a labour hire agency

Paid Fair: true Safe work: true Predictable Roster: false Bills ok: true

Legal Employment: true Worksafe: false Childcare: false Accommodation ok: true

Solution

The whole basis of employment of teachers needs to be looked at and quickly. Contract employment is not the answer. We need security in our jobs. Story

I was employed through a labour hire agency in my current job. As a casual relief teacher, I money deducted from my pay by the agency each day. I was unable to get superannuation for eight years, unless I was at one school and being paid $400 per week. This occurred rarely. As a CRT, some weeks you could work five days, other times one day or perhaps nothing at all. Insecure work meant that we couldn't plan anything in advance. As we never knew how much work I was going to get in any period, we could not budget. CRT's can get advised of work on the morning of the work or the night before. After spending six years at university to train as a Primary Teacher and being told there were "lots of jobs around", I feel disillusioned with the Victorian Education system. For CRT's there is no future of our teaching and a very insecure income. The Victorian Education Department, couldn't care less about Casual Relief Teachers and the Victorian Institute of Teaching offer little support. This happened in the Teaching industry. The whole basis of employment of teachers needs to be looked at and quickly. Contract employment is not the answer. We need security in our jobs.

Submission URL: h ttp s : / / ww w . s e c u re j ob s v ic. o r g .a u / e n /u n i o n s /1/rec s /6 6 2 Ano n y m ous Australia (NUW received via VTHC)

Manufacturing and sales of office / Hospital furniture contracting with an ABN but to one employer only by Humanscale International Holdings Limited (Ireland)

Legal Employment: false Worksafe: true Childcare: false Accommodation ok: true

Solution

Ban sham contracting. Fine Humanscale for back taxes owed to Australia which would be over $50 million. Shut down or jail Humanscale Australian lawyers who structure these scams. Story

I was contracting with an ABN but to one employer only less than a year ago. I was contracted by Humanscale in a sham contract. Humanscale generates around $10 million of sales from Australia a year and $300 million globally. Humanscale pays no tax in Australia. They use lawyers based in Melbourne to structure their contracts to avoid proper treatment of the Humanscale Australian based full time workers. Many government departments buy Humanscale products. The Government should stop buying Humanscale products now this scam company has been exposed. The contract was a total sham.

This happened at Humanscale, Australia when I was employed by Humanscale International Holdings Limited (Ireland) set up so they can avoid taxes it seems along with their registered Humanscale companies in Bermuda. Delaware, Hong Kong, Luxembourg, Singapore tax havens. This happened in the Manufacturing and sales of office / Hospital furniture industry. Ban sham contracting Fine Humanscale for back taxes owed to Australia which would be over $50 Million possibly. They have been selling in Australia since at least 2008 and do over $10 Million in sales a year. Investigate and prosecute lawyers who structure companies’ avoidance of taxes and sham contracts Submission URL: h ttp s : / / ww w . s e c u re j ob s v ic. o r g .a u / e n /u n i o n s /1/rec s /6 6 1 Ano n y m ous Adelaide (received via VTHC)

Transportation Employed through a labour hire agency by Challenge recruitment @ CCA

Legal Employment: false Worksafe: false Childcare: false Accommodation ok: true

Solution

If a labour hire staff has been working for the same host for more than 12 months doing fulltime hours they should automatically be made a permanent fulltime employee of the host company. Story

I was employed through a labour hire agency in my current job. In the last 3 years at the same host employer over 50 labour hire staff have been given pay cuts to cover the pay rises of fulltime staff! We are constantly monitored for our performance while full time staff cannot be performance managed as it is against their EBA. I have recently been told that Labour hire staff that have been working at this company for more than 2 years are now being targeted for termination and then rehire at a lower rate! How is the Australian government allowing huge companies that earn billions of dollars screw the Australian workers?

Labour hire in Australia is absolutely disgusting and it is all because of our government allowing this to happen! Any discussions are swiftly shutdown and denied by the labour hire company, if you complain your days are numbered within a couple of months (just enough time for them to deny it’s the reason for your termination) you’re no longer required. Fulltime staff can take annual leave anytime of the year but labour hire are strongly frowned upon for even thinking about asking for time off.

I stress on a daily basis about losing my job due to someone saying get rid of some labour hire staff as we are down on profits this month and we need to make up some revenue. I can be sacked for no reason and have no leg to stand on. This happened at CCA, Adelaide when I was employed by Challenge recruitment. This happened in the Transportation industry. If a labour hire staff has been working for the same host for more than 12 months doing fulltime hours they should automatically be made a permanent fulltime employee of the host company

Submission URL: h ttp s : / / ww w . s e c u re j ob s v ic. o r g .a u / e n /u n i o n s /1/rec s /6 6 0