Low paid workersLow paid workers

Helen Masterman-SmithHelen Masterman-Smith Centre for Work and LifeCentre for Work and Life

University of South AustraliaUniversity of South Australia Hawke Research Institute for Sustainable SocietiesHawke Research Institute for Sustainable Societies

www.lowpayproject.com.au

Funding PartnersFunding Partners

LHMULHMU SA UnionsSA Unions Unions NSWUnions NSW Victorian Trades Hall CouncilVictorian Trades Hall Council Brotherhood of St LaurenceBrotherhood of St Laurence Australian Research CouncilAustralian Research Council

About the studyAbout the study

Over 90 low paid workers (plus other stakeholders)Over 90 low paid workers (plus other stakeholders)

Low pay = $14/hr or $530/wk or $26800/yearLow pay = $14/hr or $530/wk or $26800/year

Service industry workersService industry workers SA – childcareSA – childcare Vic - cleaningVic - cleaning NSW - luxury hotelsNSW - luxury hotels

Book release in 2008Book release in 2008

Working low paidWorking low paid 1 in 4 Australian employees are low paid1 in 4 Australian employees are low paid WagesWages Fairness and justiceFairness and justice Hidden costs reduce value of wagesHidden costs reduce value of wages Making work payMaking work pay

Welfare barriersWelfare barriers• [Many people say]… I’m giving up work because it’s more

beneficial for me to stay on government money … it’s the extras like transport and health and teeth. … they’d prefer to work, but if it’s only twenty dollars difference … why travel an hour and half to try and get to work? (Simone, luxury hotel worker).

Tax barriers• … … [my second job is] taxed at about fifty percent I think. Because [my second job is] taxed at about fifty percent I think. Because

I’m a low income, I will get some of that back at the end of the year I’m a low income, I will get some of that back at the end of the year at tax time, but that’s pretty heavy for a second job… (David, at tax time, but that’s pretty heavy for a second job… (David, cleaner)cleaner)

Working Low Paid cont…Working Low Paid cont…

Poorer Conditions - eg. working time:Poorer Conditions - eg. working time: Long hours/short hoursLong hours/short hours

… … because of the low rate of pay … you basically have to work longer hours than because of the low rate of pay … you basically have to work longer hours than you wish to, to earn a reasonable amount of money. (Kelly, childcare worker)you wish to, to earn a reasonable amount of money. (Kelly, childcare worker)

Multiple jobholdingMultiple jobholding Shift work and unsocial hoursShift work and unsocial hours Unpredictability, limited flexibilityUnpredictability, limited flexibility IntensificationIntensification

Well you don’t do the job as good as you can because you haven’t got time. … Well you don’t do the job as good as you can because you haven’t got time. … because they undercut the contractors, … and they’re expected to do a lot more because they undercut the contractors, … and they’re expected to do a lot more work, and then they put it on to us, but they don’t want to give us the hours or work, and then they put it on to us, but they don’t want to give us the hours or anything to do it. (Lyn, cleaner)anything to do it. (Lyn, cleaner)

Working Sick and Unhealthy WorkplacesWorking Sick and Unhealthy Workplaces Unionism – members supportive, but deafeatism increasing under Unionism – members supportive, but deafeatism increasing under

WorkChoicesWorkChoices

Living low paidLiving low paid Low pay = working poverty???Low pay = working poverty???

… the price of food and petrol going up every bloody week. Well that's made it more of a struggle on the budget because I mean three kids. Shopping's gone from like $100 a week to about $160 a week. ... that's just food shopping. … The petrol I used to do $40 a week up to about $50, $60 a week. … There's bills I've been putting off to cover everything. … I get extensions on everything (Bianca, cleaner).

Time and financial poverty Time and financial poverty Health and Well-beingHealth and Well-being

No time or money for prevention/treatmentNo time or money for prevention/treatment

Low Pay PathwaysLow Pay Pathways Stepping stones mythStepping stones myth

I have worked my bones out, you know, and never got anywhere else but I have worked my bones out, you know, and never got anywhere else but just a cleaner.just a cleaner.

Stumbling blocksStumbling blocks … … there’s always going to have to be someone who has to clean there’s always going to have to be someone who has to clean

the binsthe bins Thwarted trainingThwarted training

……it’s like a vicious circle because really you can’t just give up your it’s like a vicious circle because really you can’t just give up your paid workpaid work

Cut-price careersCut-price careers I wouldn’t say that was a stepping stone. To me, it was just what I I wouldn’t say that was a stepping stone. To me, it was just what I

do.do.

Table 1 Low Paid Workers Labour Market Transitions, Percentages, Australia, 2001-2003

Transition Percentage

Low paid from 2001 to 2003 28.7

Stepped up to higher paid job in 2002 or 2003 40.6

Stepped up to higher paid job in 2002, then back to low paid job in 2003 8.7

Not working in 2002 or 2003 (unemployed/not in labour force) 9.7

Remaining low paid[i] 12.2

Total 100.0

Source: HILDA, Wave 1-3

What is to be done?What is to be done? Traditional responsesTraditional responses

Minimum standardsMinimum standards Tax creditsTax credits

Working life modelWorking life model Transitional labour marketsTransitional labour markets

ChildcareChildcare Paid maternity leavePaid maternity leave Career paths for the low paidCareer paths for the low paid Education/trainingEducation/training Welfare/tax policy reformWelfare/tax policy reform

www.lowpayproject.com.au

Research leadersResearch leaders::Barbara Pocock (Uni of SA)Barbara Pocock (Uni of SA)

John Buchanan (Sydney Uni)John Buchanan (Sydney Uni)Susan Oakley (Adelaide Uni)Susan Oakley (Adelaide Uni)

Iain Campbell (RMIT Uni)Iain Campbell (RMIT Uni)Ian Watson (Sydney Uni)Ian Watson (Sydney Uni)

http://www.unisa.edu.au/hawkeinstitute/cwl/