Dissenting report
Everyone has the right to a liveable income and the right to a safe, secure, meaningful job that pays them good wages.
Even before the pandemic there was an under- and unemployment crisis in Australia. In March 2020, the national unemployment rate was 5.2 per cent, and was even higher for young people at 11.6 per cent. The underemployment rate was even worse, at 8.8 per cent nationally and 19.1 per cent for young people. Insecure jobs have plagued workers in Australia for too long. The role casualised and precarious work played in the devastating second wave of COVID-19 in Victoria should have been a wake-up call for the Morrison government. COVID-19 also brought to the fore the struggles of casual workers.
Instead of a real plan to create a fair, sustainable economy, we have been presented with a plan for an unambitious unemployment rate of 6 per cent, and the JobMaker Hiring Credit. That’s a plan for nearly 2 million Australians to be under- and unemployment with no assurance of adequate social security payments to enable them to live with dignity. It’s a corporate welfare scheme with no promise of creating good, secure, well-paying jobs.
The Economic Recovery Package (JobMaker Hiring Credit) Amendment Bill 2020 will establish a scheme the government claims will create and improve employment opportunities in Australia, however it lacks important details and protections for workers, gives enormous power to the Minister, locks in insecure and low-paid jobs for young people and would allow big business to use public money to bolster their profits under the guise of a wage subsidy.
The Greens have serious concerns about this bill and will move amendments in the Senate to try to address some of them.
This bill grants very broad powers to the Minister to hand out public money to employers, and not much else. The bill doesn't actually establish the JobMaker Hiring Credit scheme itself—it doesn’t provide a single detail about the scheme, nor does it detail the eligibility criteria. Instead, it delegates power to the Minister to establish an unlimited number of publicly-funded wage subsidy schemes until 6 October 2022, with the only criteria being that they 'improve the prospects of individuals getting employment in Australia; or increasing workforce participation in Australia'.
The Greens do not support the JobMaker Hiring Credit scheme being established by the Minister effectively solely through regulations, nor do we support the broad and unrestricted powers proposed to be granted to the Minister in this Bill. Our concern is shared by many of those who made submissions to the inquiry, as the Chair’s report identifies. The JobMaker Hiring Credit should be created through legislation and subject to parliamentary scrutiny and amendment.
Throughout the pandemic we have seen workers suffer, losing their jobs and their income. Perversely, and obscenely, while workers are doing it tough we have seen some of Australia’s biggest companies increase their profits and pay out even bigger executive bonuses and higher dividends to shareholders. In August it was revealed that the publicly-funded JobKeeper wage subsidy was being used to prop up company profits. Seventeen of Australia’s top companies paid $250 million in dividends while also receiving JobKeeper. Under the proposed JobMaker rules, there is nothing stopping big businesses abusing the Hiring Credit in the same way. Wage subsidies should subsidise wages, not corporate profits and higher dividends for shareholders.
Analysis shows that the JobMaker scheme will significantly benefit high-performing businesses such as supermarkets and large fast food companies—that is, giant corporate outfits notorious for exploiting and underpaying their younger, casualised workers. Perhaps recognising how toxic using the Hiring Credit could be to their brand, supermarket giant Woolworths used their submission to this inquiry to deal themselves out of the scheme:
We believe the current trading circumstances of Woolworths—which are strong and entering its usual business cycle of hiring for Christmas and summer—requires us to be thoughtful as to which government programs we access. Accordingly, we do not believe it would be appropriate for the Group to seek any benefit from JobMaker.
During the committee hearing Executive Director of Per Capita, Ms Emma Dawson, shared concerns about companies paying dividends receiving the credit stating:
...certainly before taxpayers are asked to pick up the bill for labour for companies, that should be taken from profits in the first instance... I disagree most strongly - any company that is able to pay either dividends to shareholders or executive bonuses should be excluded from taxpayer support.
The Australian Unemployed Workers’ Union (AUWU) submission included a recommendation to:
Prevent large companies who have remained viable throughout the recession from accessing public funds they do not need by excluding corporations that are in a position to pay executive bonuses or shareholder dividends in FY19 or the years in which they access the hiring subsidy.
The Greens believe that companies that have paid increased dividends during the pandemic should not be eligible for the JobMaker Hiring Credit, and we will move amendments to ensure this.
Many big businesses eligible for the JobMaker Hiring Credit scheme have a history of facing claims of underpaying and exploiting their workers. Coles saw a 7.1 per cent increase in net profit to nearly $1 billion in 2020, and in November announced it was in a stronger position than pre-pandemic, despite having previously announced underpaying workers $20 million. McDonalds is currently facing a potential class action after denying hundreds of thousands of workers paid rest breaks. Super Retail Group admitted to underpaying their workers up to $61 million. Qantas was recently found to have underpaid their workers with respect to the JobKeeper payment.
The Greens are deeply concerned that the bill does not contain any provisions that revoke eligibility for businesses who are found to be underpaying their workers. Our concern is shared by a number of stakeholders.
During the committee hearing, Australian Council of Trade Unions (ACTU) President, Ms Michele O’Neil, stated:
If there is an abuse of the scheme where there have been underpayments, breaches in health and safety provisions et cetera, that should render the employer ineligible for the scheme.
The AUWU recommended that public funds should not subsidise companies that have breached workers’ rights, including businesses who have underpaid their workers. They recommend that businesses found to have engaged in such activity during the JobMaker Hiring Credit scheme or in the two years prior to receiving funds under the scheme be required to pay back all money received.
The Greens will move amendments to ensure that businesses will not be eligible to receive the JobMaker Hiring Credit if they are found to be underpaying their workers, and will be required to repay the total amount received under the scheme.
The Bill also fails to provide a dispute resolution process for any issues relating to the JobMaker Hiring Credit, including for workers who have been fired or have had their hours reduced.
In its submission, Treasury suggested that existing protections for workers such as unfair dismissal provisions in the Fair Work Act 2009 (FWA) should ameliorate concerns about this. However, a minimum employment period of 6 months, or 12 months in small businesses, is required for workers to be able to claim unfair dismissal. This requirement leaves many workers behind and without access to necessary protections. During the committee hearing Treasury referred to the hotline set up by the ATO to deal with concerns relating to the JobKeeper scheme and suggested that such a system may be established again. This is insufficient and will not adequately deal with disputes or protect workers. The ATO’s website states:
Due to privacy laws, we won’t be able to inform you of the outcome of the information you provide. We also won’t be able to provide you with process updates.
This prevents the ATO from resolving individual cases.
A number of stakeholders share concerns regarding the absence of a dispute resolution process. In the ACTU’s opening statement, President Michelle O’Neil, stated:
The proposed scheme guidelines contain no provisions which guarantee workers access to any form of redress, such as an arbitration process, should their employment be unjustly impacted by the scheme... This needs to be rectified by the addition of a provision similar to that which exists in relation to JobKeeper related matters, which provides access to arbitration at the Fair Work Commission for affected workers.
The SDA expressed similar concerns in their submission stating:
JobMaker Hiring Credit requires a dispute resolution capacity through the Fair Work Commission, whether it be related to eligibility, to termination or displacement of existing work, discrimination or other issues.
In order to ensure workers have an avenue to raise and deal with concerns, the JobMaker Hiring Credit scheme must include the power for the Fair Work Commission to resolve disputes relating to the JobMaker Hiring Credit including on issues such as termination of employment and the reduction of hours. The Greens will move amendments to establish this ability.
Instead of flawed schemes like the JobMaker Hiring Credit, the government should be directly investing in good, secure public sector jobs to build a better, safer, fairer, sustainable post-pandemic society and economy. There is much work to be done.
Recommendation
1.
That the Senate reject the bill in its current form.
2.
That the establishment of schemes such as the JobMaker Hiring Credit be done via legislation, not regulations.
3.
That the bill be amended to prevent businesses paying increased dividends during the pandemic from receiving the JobMaker Hiring Credit.
4.
That the bill be amended to remove eligibility for the JobMaker Hiring Credit from businesses that underpay their workers during the scheme.
5.
That the bill be amended to grant the Fair Work Commission powers to deal with disputes relating to the JobMaker Hiring Credit.
Senator Mehreen Faruqi
Greens Senator for New South Wales