LHMU Victoria Ground Floor, 117-131 Capel Street North Melbourne VIC 3051 Ph. 9235 7777 Fax. 9235 7770 Email: [email protected] www.lhmu.org.au Authorised by Jess Walsh, Secretary, LHMU Victoria. September 2010. ISBN: 978-0-9804694-6-2 Our Dirty SchOOlS: Kennett’S FaileD cleaning cOntractS Contents Executive summary 2 Introduction 4 Part One: School Cleaning Contracts 6 Part Two: Band-Aid Reform 12 Part Three: Western Australia Reverses Contracting Out 32 Part Four: Cleaner schools for Victoria: A real solution 40 Conclusion 44 Endnotes 48 Our Dirty SchOOlS: Kennett’S FaileD cleaning cOntractS 2 When Premier Jeff Kennett contracted In 2005, Premier Steve Bracks out school cleaning in 1992 and attempted to reform school cleaning: halved funding for school cleaning, Approved contractors would have this created a crisis in cleaning and to meet minimum labour and safety labour standards from which Victorian standards before bidding for school schools have never recovered cleaning contracts Cleaning time was savagely cut back, But an audit of 110 schools across leaving schools dirty. One in five Victoria earlier this year has revealed cleaners had to use the same mops government monitoring and in toilets and bathrooms and in other compliance mechanisms have failed parts of the school, because of cost- Students still have to learn in dirty cutting by contractors schools, because of under-funding Meanwhile, cleaners were underpaid of cleaning contracts by schools and and missed out on basic entitlements, cost-cutting by contractors like sick leave, annual leave and School cleaners aren’t paid their superannuation legal entitlements and do vast amounts of unpaid work, despite already being very low-paid. One cleaner was found to have been underpaid by more than $6,000 Our Dirty SchOOlS: Kennett’S FaileD cleaning cOntractS 3 Student safety is at risk: one in ten In 2005, WA made direct employment cleaners do not have a Working With of school cleaners mandatory Children Check. Many self-employed Poor cleaning and labour standards cleaners rely on volunteer labour of in Victorian schools demand a real, friends and family — also unknown lasting solution: Direct employment of and unchecked — because under- cleaners will do this funded contracts do not provide enough paid hours Modelling shows cleaners can be re-engaged within existing budget There continues to be inadequate outlays. In fact, direct employment training and poor safety standards, could actually save money while legal advice suggests schools and the Government may be liable for Independent analysis shows in-house injuries of contract cleaners cleaners can be more productive In 1996 Western Australia also It is time the Brumby Government experimented with school heeded these lessons too and ensured cleaning contracts Victorian students can once again enjoy a clean and pleasant learning A rapid deterioration in cleaning and environment they so clearly deserve. labour standards quickly followed, while projected cost savings also did not eventuate Our Dirty SchOOlS: Kennett’S FaileD cleaning cOntractS Introduction 4 A clean and pleasant learning Chapter One looks back to how this experiment environment is every child’s right began — and its immediate impact. In 1992, and every government’s responsibility. Premier Jeff Kennett dismissed 4000 school cleaners, slashed school cleaning budgets Studies also show that clean, and forced schools to engage private well presented schools can make contractors. This created a crisis in cleaning a real difference to student and labour standards in Victorian government academic performance. schools. Cleaning time was cut back savagely, leaving classrooms, toilets and other areas But if schools are not cleaned properly in an unacceptable and often unhygienic they can be a become health hazard — state. Meanwhile cleaners, who were often and seriously damage student learning recent migrants with little English, became a and teacher morale. Poor cleaning marginalised workforce: they were underpaid, standards also compromise the value denied their basic legal entitlements and forced to endure dangerous working conditions taxpayers and the community receive from new school facilities, through such Chapter Two considers Premier Steve Bracks’ investments as the Federal Governments attempt to reform this broken system. Under $16.2 billion Building the Education this “Panel System” only approved contractors that meet minimum standards can bid for school Revolution program. contracts. The intention was to achieve cleaner This report investigates the impact of schools, fair working conditions and a reduced burden for schools in managing contractors. school cleaning contracts in Victorian government schools, and recent efforts However an audit of more than one to reform this system. hundred Victorian schools finds these reforms, while well-intentioned, have comprehensively failed. Monitoring and compliance mechanisms have not delivered. Consequently, students are still learning in dirty schools because of under-funding by schools and cost-cutting by contractors. School cleaners remain caught in the middle of this dysfunctional system, blamed for poor standards even though there is not enough time to clean properly. Meanwhile, many are not paid their basic legal entitlements, forced to do vast amounts of unpaid work and still face dangerous working conditions. There is also evidence of a thriving black economy in schools, with international students working for cash-in-hand payments. Our Dirty SchOOlS: Kennett’S FaileD cleaning cOntractS 5 The audit finds the situation of self-employed Chapter Four explores how much it would cleaners is even more alarming. Many have cost for Victorian schools to return to direct been forced to accept unfair contracts that do employment of school cleaners. Modelling not reflect rising business and living expenses. shows cleaners can be re-engaged within These cleaners earn less than the minimum existing budget outlays, and in fact could wage and miss out on superannuation, sick pay actually cost up to nine percent less. and annual leave. This report concludes by arguing that while This report finds that under the “Panel System” Premier Bracks’ reforms were well-intentioned government funding is not being efficiently or they have not and cannot fix a system that is effectively used to provide quality cleaning. fundamentally flawed. It is time to turn the page Instead funding has been largely wasted through on Premier Kennett’s failed experiment with contractor profit margins and ineffective school cleaning contracts. Western Australia compliance monitoring systems. has rebuilt its school cleaning workforce. These cleaners are now delivering the high standards Chapter Three examines the experience of across their state school system. It is time the Western Australia, which also contracted out Brumby Government heeded this lesson too and cleaning during the 1990s. Soon after, a rapid ensured Victorian students can once again enjoy deterioration in cleaning and labour standards a clean and pleasant learning environment that also occurred. Projected cost savings did not they so clearly deserve. eventuate. Hence when a Labor government came to power it began unwinding this failed system, and ultimately shut it down. Schools eagerly embraced direct employment of cleaners because it was simpler, more accountable and delivered higher standards. Independent analysis also shows directly- employed school cleaners are often more productive than private contractors. Our Dirty SchOOlS: Kennett’S FaileD cleaning cOntractS 6 “Under thIs system the lowest-possIble bId Is rewarded, not the hIghest possIble standards of CleanlIness for sChools, or employment and safety for Cleaners.” Dirty SchoolS, Forgotten cleanerS (2004) Our Dirty SchOOlS: Kennett’S FaileD cleaning cOntractS 7 Key pointS In 1992 Premier Jeff Kennett Victoria’s school cleaning contract contracted out school cleaning system is one the most decentralised in Australia. There are currently 946 Funding for school cleaning contractors2 registered with the was halved Department of Education providing cleaning services to 1574 government This created a crisis in cleaning 3 and labour standards in schools schools. Each school is individually responsible for the tendering, selection Cleaning time was slashed, and monitoring of cleaning contracts. leaving schools dirty The current Labor government inherited Cleaners were underpaid, this system from its predecessor, the and missed out on basic entitlements. Liberal Kennett government (1992-1999). It has remained largely unchanged since its creation in 1992. Our Dirty SchOOlS: Kennett’S FaileD cleaning cOntractS 1990s: Kennett’s free market experiment 8 Until 1992 government schools were cleaned “They won’t be there in the mornings to by cleaners employed by the Department of open schools: turn on heaters, do the Education. But when Premier Jeff Kennett myriad of odd jobs they have always done. came to power he began making sweeping They won’t be around to clean up the cuts to the state education budget and messes of a normal day — spills on carpets, many other public services, and imposed a accidents in toilets, burst containers, market-based system across the public sector. gardening, caring for classroom pets, He terminated the jobs of the Education being another stable adult in the lives of Department’s 4000-strong school cleaning many of our children, who so much need workforce. Schools were prevented from