Anti-poverty campaigner: We need to stop 'harmful' new employment system

June 21, 2022
Issue 
Workforce Australia is the new employment system for people on payments like JobSeeker.

Anti-poverty campaigners are calling on Anthony Albanese鈥檚 Labor government to scrap the controversial new Workforce Australia program, scheduled to begin in July. The major overhaul to employment 鈥渟ervices鈥 will introduce more for recipients of JobSeeker and other income support payments.

Antipoverty Centre spokesperson Kristin O鈥機onnell told 麻豆传媒 the new system is 鈥渘ot just pointless, but harmful鈥. She said Workforce Australia, which will overhaul the mutual obligations system to a (PBAS), only 鈥渄ials up the pressure on unemployed people鈥.

Currently, JobSeeker recipients have to apply for 20 jobs each month, or risk an end to their payment. With a PBAS, JobSeekers must complete 100 points of 鈥渁ctivities鈥 each 聽month: a job application is five points, completing an online learning module is five points and attending a job interview is 20 points.听

Amazingly, those who find a job, are a聽full-time student, or are in a full-time work for the dole (WFTD) program, only receive 20 points.

O鈥機onnell said the PBAS will create even more stress for people already struggling to get by. 鈥淥ne of our biggest concerns is that people won鈥檛 understand the changes and that will lead to payments being cut off.鈥

One-in-five people receiving some income support also work casually or have part-time jobs. Under PBAS, work shifts will count: five points for five hours work. If a shift is cancelled, or changed towards the end of the reporting period, a JobSeeker recipient may have to scramble to meet the required points.

鈥淯nder the current system, if you fail to meet your requirements you are penalized. But with the new system, you will not only be penalised but the points you failed to accrue will carry over to the next month,鈥 O鈥機onnell explained. 鈥淭his will lead to points and stress piling up, and more payments being cut off.鈥澛

She said those on JobSeeker for 6 months or less will not see much change. The longer-term unemployed will suffer the most, creating 鈥渢wo classes of unemployed鈥.听

While Workforce Australia was set up by the former Coalition government, new Labor employment minister Tony Burke said it is 鈥渢oo late鈥 to abandon the new system.听

O鈥機onnell countered that it is 鈥渘ever too late to scrap a system like this鈥.

鈥淚t might take time for the minister鈥檚 office to get to grips with such a major project and this is why we are calling on the minister to ensure there are no penalties or suspensions for JobSeeker recipients for a minimum of 90 days.

鈥淧eople need time to work out the new system.鈥 O鈥機onnell added that the government stopped payments being suspended during the pandemic 鈥渨ith the stroke of a pen鈥 and that Burke could easily do the same.

While Burke has said he is to improve the system, O鈥機onnell said it is 鈥渁larming鈥 that he is not consulting anti-poverty advocates.

鈥淪o far he hasn鈥檛 responded to our requests to talk with us ... The minister could use those 90 days to engage with people in the system to make things less harmful. We don鈥檛 want him to rush the change and make things more confusing."

The JobSeeker rate of about $46 a day is almost half of the Henderson Poverty rate of $88. The Youth Allowance for students under 25 years old is even less 鈥 about $36 a day.

Labor has refused to raise the rate of income support, even scrapping a proposed 鈥渞eview鈥 just before the election. Those on income support were already struggling to afford basic necessities, such as food, petrol and rent, even before the current .听

鈥淚t is unimaginable cruelty to ignore millions of people on payments below the poverty line, people on welfare were already cutting back on meals before prices went through the roof,鈥 O鈥機onnell said.

She said it is disappointing that聽during the election the government invoked Albanese's upbringing in public housing and his mother being on the Disability Support Pension, and has now dug in to defend unnecessary tax cuts for the rich, while passing a 鈥減altry鈥 minimum wage rise and some mortgage relief.听

The government has refused to commit to building more public housing and said it will not raise welfare payments in its first budget.听

While campaigning for raising income support payments and opposing punitive compulsory activities, O鈥機onnell said the Antipoverty Centre is also building a campaign against the WFTD program, which she described as 鈥渄angerous and dehumanising鈥, as shown by the death of Josh Park-Fing on a WFTD site in 2016.听

Under Workforce Australia, those on JobSeeker payment will start WFTD after 6 months, as opposed to the current 12 months.听

鈥淲e are in the process of gathering stories and experiences from people in the system which we will use to pressure the government and companies that use WFTD for staff,鈥 O鈥機onnell said. 鈥淲e need to build a grassroots campaign, including unions and local government to end WFTD for good.

鈥淲FTD undercuts waged workers, providing free labour for host organisations who will then hire fewer paid staff. We need to build solidarity between waged and unwaged workers.鈥

O鈥機onnell said grassroots pressure can make it 鈥渦ntenable鈥 for politicians to do what they are doing to people on welfare. 鈥淭here is already lots of support, the majority of people want welfare payments to be above the poverty line, we just need to make it a priority.鈥澛

[A against Workforce Australia has been organised outside employment minister Tony Burke鈥檚 Sydney office on July 1 at 12pm. for 90 days suspension of payment cut offs.]

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