Victorian Trades Hall Council and National Union of Workers Submission to the Inquiry Into Sustainable Outcomes for Disadvantaged Job Seekers July 2019
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LA EIC - Disadvantaged Jobseekers Inquiry Submission no. 75 Received: 2 August 2019 Victorian Trades Hall Council and National Union of Workers Submission to the Inquiry into Sustainable Outcomes for Disadvantaged Job Seekers July 2019 1 Contents 1. About VTHC and NUW .................................................................................................................... 3 2. Definition of Sustainable Work ..................................................................................................... 3 3. Job Seekers in Victoria................................................................................................................... 4 4. Disadvantaged Job Seekers .......................................................................................................... 5 4.1 Women Job Seekers ........................................................................................................... 5 4.2 Young Job Seekers ............................................................................................................. 6 4.3 Migrant Job Seekers .......................................................................................................... 6 4.4 Aboriginal and Torres Strait Islander Job Seekers ........................................................... 6 4.5 Job Seekers with Disabilities ............................................................................................. 7 4.6 Job Seekers in Regional Areas .......................................................................................... 8 5. Recommendations for Job Creating for Disadvantaged Job Seekers ........................................ 8 6. Exploitation of Disadvantaged Workers is Endemic ................................................................. 11 6.1 Wage Theft ....................................................................................................................... 11 6.2 Gendered Violence .......................................................................................................... 13 7. Supporting Job Seekers .............................................................................................................. 14 8. Unionised Workplaces Provide Sustainable Work .................................................................... 14 9. Conclusion ................................................................................................................................... 16 10. List of Recommendations .......................................................................................................... 17 11. References .................................................................................................................................. 18 2 1. About VTHC and NUW The Victorian Trades Hall Council (VTHC) was founded in 1856 and is the peak body for unions in Victoria. VTHC represents more than 40 unions and over 430,000 workers in Victoria. These workers are members of unions that reach into every industry in the state, both in the public and private sectors. Since gaining the Eight Hour Day in April 1856, VTHC has had a long history of fighting for and defending the rights of workers in Victoria. The importance of winning the Eight Hour Day is significant not just in Australia but worldwide. Few advances in the quality of life for working people would have been achieved without the involvement of the Victorian union movement. NUW is the union that has coverage of workers in many of the industry’s most adversely impacted by modern slavery. NUW was formed in 1989 from the amalgamation of six unions which were established in the early 20th century. Since the amalgamation, NUW has been at the forefront of campaigning to end the exploitation of migrant workers in the agricultural industry. The NUW and VTHC will continue to campaign tirelessly for the rights, entitlements and protections of workers in Victoria, no matter their gender, sexuality, workplace or employment status. This inquiry highlights that workers who belong to marginalised groups are more likely to be unemployed, and interventions that are appropriate and targeted are necessary. This inquiry also pinpoints a broader problem with the relationship between economic insecurity and joblessness; once a disadvantaged jobseeker obtains a job, they are more likely to be exploited at work. The need for sustainable jobs to be quality and secure cannot be overstated. 2. Definition of Sustainable Work This inquiry must find a working definition of sustainable work, and must strive to ensure that all recommendations prioritise finding quality jobs for job seekers. VTHC emphasises that sustainable work must be secure, including full-time and only casual or part-time where necessary. It must be safe and comply with all OHS regulations, and also recognise that wage theft is an endemic issue that must be overcome. The rapid rise in insecure work is one such issue that must be considered when defining sustainable work. Research conducted by the ACTU shows that 40% of workers across Australia are in some form of insecure or casual work.1 This extends to hospitality and retail workers, workers in the gig economy, and sub-contractors on sham contracts. Casual work has grown rapidly across Australia, particularly throughout the last few years. After having remained steady around 20% since the 1980’s and into 2010, the current rate of casual work has increased to 24.6%.2 Workers who are unable to pay the bills due to inadequate hours and rates of pay, and are actively looking for more work, are underemployed. Underemployed workers are also job seekers, and any approach must prioritise full-time job creation as sustainable work. Recommendation 1: Create a ‘sustainable’ work definition that encompasses the right to secure, well paid, safe work, free from wage theft and gendered violence. 1 Australian Council of Trade Unions (ACTU), Australia's insecure work crisis: Fixing it for the future, 2018, accessed <https://www.actu.org.au/media/1033868/insecure-work_final-18052018-final.pdf> 2 ABS, Australian Labour Market Statistics, cat. no. 6105.0 (estimates for 1992 to 2004): ABS, Characteristics of Employment, cat. no. 6333.0 3 3. Job Seekers in Victoria Workers who are seeking employment have a range of characteristics and belong to many and varied communities. Most obviously job seekers are workers who are unemployed. Unemployment rates have generally declined in Victoria overall, falling from 6.6% in 2000, to 6% in 2008 and to 4.6% currently.3 However, research conducted by the Australian Council of Social Services (ACOSS) indicates that there is a lack of jobs for working people across Australia. For example, in the retail, hospitality and construction industries there are 43 applicants for every entry level job, and 19 applicants for every low skilled job generally.4 ACOSS research shows that unemployed workers struggle to find a job; 64% of Newstart and Youth Allowance recipients were unemployed long-term, meaning they received payments for more than a year. Further, 44% received the allowance for over two years, and 15% for over five years.5 In addition, underemployment rates have also risen dramatically. Currently 337,000 Victorians are underemployed, representing 9.9% of the workforce. This has risen from 6.8% in 2000, to 9.1% in 2009. Underutilisation figures have similarly risen, from 12.9% in 2000, to 14.5% in 2009, and currently sitting at 14%.6 Data from the Household Income and Labour Dynamics in Australia (HILDA) survey demonstrates that underemployment is the pervasive norm within employment systems. Of all workers who are employed part-time, a third (33.8%) are underemployed.7 On average, an underemployed worker works 17 hours per week, which is 2.5 hours less than the average part-time worker. Underemployed workers are most likely to work in the community and personal service industries, as sales workers and as labourers, in smaller businesses with less than 20 workers.8 A significant portion of underemployed workers (10.9%) have more than one job, and 8.1% of all workers have more than one job.9 ACOSS figures also show that across the broader economy, there were 8 applicants per job vacancy, but when adding in employed workers applying for second jobs or changing jobs, this number doubles to 16.10 Of those who became fully employed after a year, 3.9% of underemployed workers were able to increase their hours with the same employer, and 2.8% increased their hours through finding a different employer.11 Underemployment rates are some of the highest they’ve ever been. The current employment structures make it easy for employers to exploit workers, placing them in insecure work patterns. While more people are in work, casual and insecure employment is increasingly used as an unsustainable form of work. 3 ABS, Labour Force Data, Australia, cat. no. 6202.0 4 Australian Council of Social Services (ACOSS) Faces of Unemployment, September 2018, p 15, accessed <https://www.acoss.org.au/wp-content/uploads/2018/09/ACOSS_JA_Faces-of-Unemployment_14-September-2018_web.pdf> 5 Ibid 6 ABS, Labour Force Data, Australia, cat. no. 6202.0 7 Melbourne Institute, The Household, Income and Labour Dynamics in Australia Survey: Selected Findings from Waves 1 to 16, 2018, accessed <https://melbourneinstitute.unimelb.edu.au/__data/assets/pdf_file/0009/2874177/HILDA-report_Low- Res_10.10.18.pdf> 8 Ibid 9 Ibid 10 Australian Council of Social Services (ACOSS) Faces of Unemployment, September 2018, p 15, accessed