Centrelink to hire 1000 labour-hire staff for 'debt recovery'

November 25, 2017
Issue 

Centrelink, the federal government's main social welfare agency, is planning to hire 1000 private labour-hire staff to carry out "debt recovery" operations and assist in enforcing compliance by welfare recipients.

This latest large-scale outsourcing exercise comes just a month after the Coalition government announced that controversial multinational corporation Serco would use 250 employees to staff a Centrelink call centre, supposedly to help reduce long waiting times.

Community and Public Sector Union (CPSU) described the latest outsourcing as "new and scandalous". She said it would place labour-hire staff in sensitive roles that "should be done by well-trained public servants".

"Robo-debt was an absolute disaster for both DHS [Department of Human Services] staff and the community β€” the [Malcolm] Turnbull government is trying to abdicate their responsibility for this debacle by outsourcing the mop-up to a private company," Flood said.

"Labour hire has no place in public services β€” the Turnbull government needs to lift its arbitrary cap on public sector employment so that the community can have the services it needs.”

The Robo-debt scandal, which emerged publicly a year ago, involved computerised raising of welfare debts to Centrelink, many of which were incorrect. Flood warned that moves to privatise the compliance area would only cause a further deterioration of morale within Centrelink.

"DHS staff have an important job that they take pride in and that the whole community relies on,” Flood said.

β€œThese privatisation moves make these jobs precarious and unnecessarily stressful. Staff are saying that morale has reached rock-bottom and this has real implications for staff and the community."

The new privatised compliance staff are expected to begin work early next year.

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