Jobs and Small Business
2.1
This chapter summarises certain key areas of interest raised during the
committee's consideration of additional estimates for the 2017-18 financial
year for Jobs and Small Business.
2.2
On 28 February 2018, the committee heard evidence from Senator the Hon.
Michaelia Cash, Minister for Jobs and Innovation, and Senator the Hon. Zed
Seselja, Assistant Minister for Science, Jobs and Innovation, along with
officer from the Department of Jobs and Small Business (the Department) and
several agencies responsible for administering jobs and small business policy,
including:
-
Australian Building and Construction Commission; and
-
Office of the Fair Work Ombudsman.
Department of Jobs and Small Business
Cross Portfolio
2.3
Inquiries were made into the seven new funding measures announced for
the Department since the 2017-18 Budget. Ms Kerri Hartland, Secretary
of the Department of Jobs and Small Business, noted that six measures were
included in the 2017-18 Mid-Year Economic and Fiscal Outlook (MYEFO) and one
additional measure had been announced since MYEFO.[1]
When questioned on what those measure were, Ms Hartland answered:
...one of those was a spending measure, five were savings
measure, and one had a nil financial impact There were savings to meet the
Commonwealth redress scheme for survivors of institutional child sexual abuse,
where there was additional funding of $4.8 million with total savings over the
forward estimates for Jobs and Small Business. There was a second one around
encouraging self-sufficiency for newly arrived migrants; that was a $3.4
million total saving over the forward estimates. There was the Fair
Entitlements Guarantee scheme, which addressed corporate misuse, and that had a
nil financial impact. There was the Seasonal Worker Program to improve take-up
and streamlining of administration, which was a $0.1 million total saving
over the forward estimates. There was Strengthening the Integrity of Welfare
Payments, which was around unlegislated components that weren't proceeding—there
was a $5.8 million total saving. There was Stronger Transitions, the transition
of retrenched workers into future jobs, which is $10.3 million in total
expenses over the forward estimates. The one that I mentioned was outside the
MYEFO process was the digital employment services pilot, which had a nil
financial impact over the forward estimates period.[2]
2.4
There were further inquiries into the Federal Court decision that All
Trades, a large Queensland employer of apprentices, had underpaid workers.[3]
In particular, an update was sought on whether a Federal Government funding
package would be forthcoming to assist in meeting the underpayment of
Queensland apprentices and trainees.[4].
Ms Parker stated that 'the offer from Minister Cash is to work together to
investigate solutions'. The Department noted that no money had been repaid to
the apprentices as of yet, but discussions were ongoing with affected parties,
state officials and unions.
Outcome 1
2.5
The committee sought an update on the jobactive program. Mr Greg
Manning, Group Manager of the Youth and Programmes Group, said that 100 000 job
placements had been supported through the wage subsidy.[5]
When further breaking down this figure, Ms Dany Turner, Acting Branch Manager
of the Youth and Programmes Group, noted:
For Restart, which is the mature age wage subsidy, we had
22,238. For the long-term unemployed and the Indigenous, we had 28,944. For
parents, we had 7,289. The youth wage subsidy is broken down between a youth
subsidy and a youth bonus, so I'll give you the total youth, which was 34,912.
As at 31 December, we had 93,383 agreements in place, and this morning's event
was marking the 100,000th.[6]
2.6
Questions were asked regarding the use of quality control and quality
assurance for jobactive courses in the aged care sector. Mr Manning responded
that the Department does not 'have a role in relation to the quality of
training'.[7]
2.7
The committee further raised the issue of the death of a worker on a
Work for the Dole site and inquired as to when the Department of Jobs and Small
Business report into this death will be released.[8]
Mr Martin Hehir, Deputy Secretary, noted that as the case is still before the
courts in Queensland, the department would not release the report until the
matter is decided.[9]
2.8
The rollout of the Stronger Transitions package was also discussed
during the hearings. In particular questions were asked about the anticipated
number of people who will be part of the program and the areas covered by the
package. Mr Malcolm Greening, Branch Manager of the Labour Market Strategy
Group noted that approximately 2000 people will be supported and the program
will be carried out in Adelaide, Mandurah, northern and north-west Tasmania and
north-west Melbourne.[10]
Outcome 2
2.9
The committee inquired into the Seasonal Worker Program. In particular,
information was sought on the growth of the program since its inception, the
breakdown of seasonal worker numbers by country and whether these seasonal
workers are employed in urban or rural areas.[11]
Ms Parker noted that between 2012‑13 and 2016-17
the number of seasonal worker grants had increased from 1473 to 6166.[12]
2.10
The death of several workers employed under the Seasonal Worker Program
was further discussed. The Department stated that since 2009 there have been
fourteen deaths of people involved in the program.[13]
Of these, five were involved in roadside accidents. Ms Parker noted that six
deaths were due to pre-existing medical conditions and noted that:
...we have data that shows that fifty per cent of them
[individuals from Seasonal Worker Program countries] have diabetes or
cardiovascular issues. It's a systematic health issue. It's a balance between
wanting to help countries grow and have opportunities here an, but at the same
time knowing they're not as robust, often, as Australian workers.[14]
Australian Building and Construction Commission
2.11
The committee opened proceedings by acknowledging the work of Ms Cathy
Cato, for her contribution as Acting Commissioner, and welcomed Mr Stephen
McBurney to the role as Commissioner.[15]
2.12
The committee inquired into the budget and personnel numbers of the
Australian Building and Construction Commission (ABCC) as well as the number of
inspectors who carry out functions under the Building and Construction
Industry (Improving Productivity) Act 2016 (the Act). Mr McBurney
noted that there were currently 84 inspectors, 54 of which investigate
contraventions of the Act and 30 who have a function under the Building Code.[16]
2.13
Committee members made further inquiries into the Mr McBurney's
priorities as the new ABCC Commissioner. Mr McBurney noted his personal
priorities were discharging functions as required under the Act, acting in an
apolitical manner. He also stated that he expected his staff to act impartially
and professionally in all functions of their daily duties including their
investigations and prosecutions.[17]
2.14
Committee members inquired into the ABCC's distribution of incorrect
material surrounding the right of entry laws and whether a review was conducted
on this matter.[18]
Mr McBurney noted that he 'sought assurances from [his] staff that the
inaccurate material that was on the website from 1 January 2014 to 28 July
2016 has been rectified'.[19]
Mr McBurney further stated that the 'matter of the inaccurate material being on
the website has been dealt with by the court'.[20]
2.15
Committee members further questioned senior executive staff from the
ABCC regarding their knowledge of incorrect information published and distributed
on leaflets in regards to right of entry provisions.[21]
Mr McBurney noted that the ABCC was made aware of these errors in July 2016
when the CFMEU wrote to the ABCC 'to alert them to the problem in the right of
entry poster, right of entry pocket guide and right of entry fact sheet'.[22]
Upon receiving this email, 'Mr Hadgkiss issued a direction to all staff of the
agency that, with immediate effect, staff were no longer to distribute the
right of entry material, and advised that the right of entry material [be]
removed from the website'.[23]
2.16
Information was sought regarding the differences between the 2013
Building Code and the 2016 Building Code particularly in regards to freedom of
association. Ms Cathy Cato, Deputy Commissioner Operations and Code, stated
that under the 2016 Building Codes there were 'more stringent requirements'.[24]
Ms Cato referred to section 13(1)(j) of the Code for the Tendering and
Performance of Building Work 2016 which states:
...the code covered entity must ensure that:...(j) building association logos, mottos or indicia are not
applied to clothing, property or equipment supplied by, or which provision is
made for by, the employer or any other conduct which implies that membership of
a building association is anything other than an individual choice for each
employee;[25]
Office of the Fair Work Ombudsman
2.17
Information was sought regarding the release of a report titled An
inquiry into the procurement of cleaners in Tasmanian supermarkets released
on 14 February 2018. Ms Natalie James, the Fair Work Ombudsman, noted the
investigation was initiated after the agency received intelligence relating to
stories of 'very serious' exploitation in some Tasmanian supermarkets.[26]
2.18
In relation to the exploitation of Tasmania supermarket workers,
questions were also raised surrounding the steps taken by the Office of the
Fair Work Ombudsman (FWO) to recover the underpayments for the effected
workers. Mr Michael Campbell, Deputy Fair Work Ombudsman, noted that the
FWO 'identified underpayments and sought to recover the underpayments of $64
000 for a number of workers'.[27]
2.19
Mr Campbell further noted that 'the investigations...were complicated by
the fact that the contractors did not keep records of the hours the employees
worked nor what the employees were paid, which makes it hard to further recover
monies owed'.[28]
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