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VICTORIAN TRADES HALL COUNCIL SUBMISSION Inquiry Into Labour Hire and Insecure Work REPORT

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VICTORIAN TRADES HALL COUNCIL SUBMISSION Inquiry Into Labour Hire and Insecure Work REPORT VICTORIAN TRADES HALL COUNCIL SUBMISSION Inquiry into Labour Hire and Insecure Work REPORT DECEMBER 2015 1 INQUIRY INTO LABOUR HIRE AND INSECURE WORK | VICTORIAN TRADES HALL COUNCIL INTRODUCTION The Victorian Trades Hall Council (VTHC) was founded Unions exist to give workers a voice. As a result, this in 1856 and is the peak body for unions in Victoria. submission includes personal stories from Victorian VTHC represents approximately 40 unions and over workers who have experienced firsthand the detrimental 400,000 workers in Victoria. These workers are members impact of labour hire and insecure work. of unions that reach into every industry in the state, both in the public and private sectors. To ensure that workers have had a fair opportunity to participate in this important inquiry, VTHC has Since gaining the Eight Hour Day in April 1856, VTHC collaborated with the National Union of Workers has had a long history of fighting for and defending the (NUW – Victorian Branch) to develop on online rights of workers in Victoria. The importance of winning submission portal where workers could share their the Eight Hour day is significant not just in Australia story. Anonymity was provided, if requested. This but worldwide. Few advances in the quality of life for portal received over 600 submissions and these working people would have been achieved without the submissions have been provided to the Inquiry Chair. involvement of the Victorian union movement. VTHC would like to sincerely thank the Inquiry Chair and staff for their support of this endeavour; Over the last 150 years, VTHC and its affiliated unions and thank the NUW for their ongoing collaboration have campaigned for and successfully won a range of here. important rights and entitlements for Victorian (and Australian) workers, including: These worker stories are powerful. They are at times, • Minimum wage poignant and sad; angry and passionate. One question • Penalty rates asked workers, ‘if you were in charge, how would you • Collective bargaining rights fix this problem?’ Their feedback, ideas and suggestions • Freedom of association and the right to representation has driven and been the focus of our report and • Occupational Health and Safety (OHS) protections recommendations in this submission. • Annual as well as Sick (and Carer’s) Leave • Maternity and Parental Leave With the launch of this important inquiry, an opportunity • Paid Domestic Violence Leave presents itself for Victoria to continue to lead the way • Superannuation in the rights and entitlements of workers. Our current • Protections from unfair dismissal and redundancy federal government seems more interested in cutting the entitlements, and entitlements and conditions of working people, meaning • Long Service Leave. no comfort will be found through federal mechanisms at this time. Despite this obvious limitation, numerous The changing nature of work in today’s modern opportunities present themselves for Victoria including world means these hard-fought entitlements are now regulation, worker training and procurement best practice. under attack. Further, an increasingly globalised and deregulated labour market means more workers than This Inquiry is also timely. With the rise of “free” trade ever are trapped in insecure work through labour agreements (FTAs) such as the China Australia FTA, hire, sham contracting, short-term contracts or casual VTHC also holds grave concerns for the safety, health employment. Each and every day, these workers are and wellbeing of migrant workers in this country who missing out on the benefits of the union movement’s find themselves doubly exposed to exploitation through victories. insecure visa arrangements. VTHC will continue to campaign tirelessly for the rights, Victoria must take the lead in protecting all working entitlements and protections of all workers in Victoria, no people in this state. matter their employment status or employer, workplace or birthplace. VTHC has consulted widely and collaboratively with our affiliate unions. Unions have been encouraged to prepare and submit their own submission relevant to their membership. This submission is in no way intended to supersede any submission from an affiliate union, rather it should be read as complimentary. VTHC would like to acknowledge the work of its affiliate unions and the Australian Council of Trade Unions (ACTU) for Luke Hilakari participating in the development of this submission. Secretary 2 INQUIRY INTO LABOUR HIRE AND INSECURE WORK | VICTORIAN TRADES HALL COUNCIL THE IMPACT OF LABOUR HIRE AND INSECURE WORK Submissions from over 600 Victorians with experience of insecure work point to a dire need for regulation of labour hire and insecure forms of employment. Working with the National Union of Workers, Victorian It is important to note that insecure work is not limited Trades Hall Council built an online portal to collect the to the private sector, indeed it is prevalent throughout stories and experiences of workers trapped in labour hire the public sector and not-for-profit (NFP) organisations. and insecure work. Over 600 working people made a Governments of all political stripes have embraced a submission through this process, and their experiences similar model with short-term, cyclical funding for form the basis of this report. public services. Clearly, government has a leading role to play in reducing the prevalence of insecure work. Almost 4 million workers or 40% of the Australian workforce are locked in insecure work, namely as The rise of insecure work is not simply some unexpected casuals, labour hire workers, short-term or sham result of the “evolving” nature of work in today’s modern contracting arrangements. world. Rather, it is the desired outcome from a systematic and targeted attempt by big business, corporations and Some of the consequences of insecure work are: their lobby groups to deregulate the labour market. • Financial insecurity, where workers struggle to pay rent, medical bills or secure car loans; Insecure work simply creates an opportunity for • Less safe workplaces with poorer OHS outcomes employers to offload their workforce responsibilities. and increased risk of injury or disease; Arrangements designed to benefit the employer first • Inability to plan lives due to random and irregular and foremost, such as sham contracting, labour hire and employment patterns; and casual employment, are dangerous and detrimental to • Fewer career options, with options, with less training workers. opportunities leading to poorer career advancement. 3 INQUIRY INTO LABOUR HIRE AND INSECURE WORK | VICTORIAN TRADES HALL COUNCIL 4 INQUIRY INTO LABOUR HIRE AND INSECURE WORK | VICTORIAN TRADES HALL COUNCIL 5 INQUIRY INTO LABOUR HIRE AND INSECURE WORK | VICTORIAN TRADES HALL COUNCIL It is the opinion of VTHC that the recommendations, listed on the page over, are necessary, realistic and achievable. VTHC commits to working with community stakeholders, employer associations and government to ensure the safety, rights and entitlements of workers in labour hire and other insecure working arrangements are guaranteed. 6 INQUIRY INTO LABOUR HIRE AND INSECURE WORK | VICTORIAN TRADES HALL COUNCIL RECOMMENDATIONS 1. That the Victorian Government recognises the 7. That the Victorian Government lobby the federal changing nature of work in Victoria, including the government to maintain or extend (and in no way rise of insecure work such as labour hire, sham reduce) current employment entitlements for contracting, short-term contracting and casual working people, such as penalty rates. employment; and acknowledge a need to address the detrimental impact of insecure work on working 8. That the Victorian Government, in an effort to people. reduce the severity of insecure work on working people, introduce a portable long service leave 2. That the Victorian Government recognises insecure scheme for Victorian workers. work often results in financial and housing stress; plus emotional and family relationship stress as 9. That any reports and recommendations arising from well as poorer working conditions and less safe the Inquiry are framed by an understanding that workplaces. insecure work is a gender equality issue and that therefore any recommendations or proposals must 3. That the Victorian Government acknowledges the acknowledge and incorporate a gender dimension, key role it plays in setting a standard of best practice specifically: regarding reducing the prevalence of insecure work through its own employment practices across the (a) That the Victorian Government support public service; and that the Victorian Government amendments to the Fair Work Act, and commits to the phasing out of insecure work across applications before the Fair Work Commission, its public services. designed to ensure those with family/caring responsibilities have a right to flexible working 4. That the Victorian Government stipulates best hours. practice from companies and not-for-profit organisations seeking government contracts through (b) That the Victorian Government fund initiatives the tendering process. Further, the Victorian by the Victorian and Regional Trades and Labour Government should recognise the flow-on impact Councils designed to support the adoption of of short-term contracts for government work employment practices supportive of quality part- results in short-term contracts for those workers; time work and a move away from casual work and accordingly phase out insecure work across arrangements for workers with
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