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:admin@aierights.com.au 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.

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