Labour hire hypocrisy
Is the government really leading by example on labour hire contracts?
The Government has been vocal in cracking down on the use of so-called ‘Labour Hire’ services. Explaining the policy ahead of the last election, Labor's employment spokesman Tony Burke said:
“The only way to end the labour hire rorts that are ripping off casual workers is to an elect an Albanese Labor Government.
“Workers doing the same job at the same site should get the same pay. It’s that simple.
“But right now – particularly in mining but also in other industries across the economy – companies are deliberately using labour hire firms that exploit casual workers, undermine job security and undercut wages.”
The Labor Government claims that it's leading by example on its ‘Labour Hire’ policy, with the latest Budget papers carrying a section headlined, 'Reducing reliance on contractors, consultants and external labour hire’.
Burke's own department goes further in spruiking the Government's credentials. It claims that:
“The portfolio continues to contribute to the Government’s Ambitious and Enduring Reform Plan for the Australian Public Service by reducing spending on external labour. The department is implementing an ongoing process of identifying roles filled using external labour hire and converting these into Australian Public Service positions where appropriate to do so.”
This begs the question, has the Government actually led by example in cracking down on its own use of what it terms ‘exploitative’ Labour Hire?
The Menzies Research Centre has examined contracts entered into by the Government since 1 July 2022 and found 2,812 that it describes as 'Labour Hire' agreements. In total, over $600 million has been spent on what the Government itself declares as ‘Labour Hire’ services since the election.
Examples include:
Department of Climate change spending $270,000 in May 2023 for, in its own words, ‘Labour hire to bring a contractor into the team’.
A contract entered into between the Prime Minister's own department and a Canberra consultancy for ‘Labour Hire Services’ worth $150,000 for a seven-month period
A contract for ‘4 x labour hire from 2 January 2023 – 30 June 2023’ at a cost of $428,097
The Government is already having difficulty selling these reforms to the private sector. If the Government wants to convince employers of the need to move away from ‘Labour Hire’, then it should practice what it preaches.