In a September 16 media release, the National Association of Community Based Children's Services (NACBCS) listed its demands in the October 9 election, calling on all political parties to commit to retaining and developing community-owned, not-for-profit children's services.
On September 8, a merger was announced between ABC Learning Centres and its main corporate rival, Peppercorn Management Group — creating a childcare company worth more than $700 million.
ABC Learning was listed on the stock exchange three years ago, and Peppercorn Management was listed in November 2002. Last month, ABC said growth opportunities in the industry were abundant and it had doubled revenue and booked a 77% rise in net profit. Net profit for the year to 30 June was $21.4 million, on revenue of $81.6 million.
The merged company will control 780 childcare centres across Australia (and 70 in New Zealand). This equates to a 33% "market share" of the commercial childcare sector. It has been reported that the competition regulator, the Australian Competition and Consumer Commission is unlikely to be concerned because of "fragmentation" of the childcare "industry". About one-third of centres are not-for-profit services managed by non-government community-based organisations, local government, churches or charities. The commercial sector thus gains the lion's share of the $1.5 billion federal government's Child Care Benefit payments.
"What we have seen over recent years has been corporate childcare owners rolling in tax-funded profits while 700,000 parents, overwhelmingly women, are shut out of the workforce because childcare is either not available or too expensive", Lisa Macdonald, the Socialist Alliance candidate for Reid, commented.
Macdonald, like many other women's rights activists, argues that what is needed is a national network of quality low-cost childcare centres, with developmental programs designed to give children the best start in life. "This will not only give children the best start in life, it will ease the burden on women trying to juggle work and family. Such a network of services would have to be public funded, democratically managed and staffed by qualified well-paid staff", she added.
"We are alarmed that the Australian government is allowing unchecked growth of publicly listed corporate childcare chains", NACBCS convenor Lynne Wannon explained. "Child care needs to be about more than tax concessions — the provision of adequate child care is about more than tax deductibility and salary sacrificing. Childcare policy must focus on capital funding for the establishment of new community-owned services and on improving wages for childcare workers while protecting affordability for families. This is the way forward for child care — a planned investment by government in an accessible system of high quality childcare services for all Australian families."
The growing monopolisation of child care also raises concerns about the position of childcare workers — most of whom of women. ABC staff are in general casual, on individual contracts, and the workplaces have in the past been deemed no go areas for unions.
A statement issued by the childcare section of the Liquor, Hospitality and Miscellaneous Workers Union on September 14 stated: "Childcare workers employed by Eddy Groves, at his growing conglomerate, have rung LHMU Childcare Union offices across the country asking for membership forms — and details of how they can protect their wages and conditions."
Union membership has grown rapidly among childcare workers over the last few months. "On average we've had 150 new people join the union every month this year", LHMU assistant national secretary Jo-Anne Schofield said.
"But this month we expect to break all records. And that's largely because of concerns about the way the profit-oriented conglomerates are changing this industry."
The LHMU is organising meetings in a number of states for all workers to discuss the implications of the Eddy Groves takeover.
"The key advice being given to worried workers is not to sign any forms that ABC child care presents to you" Schofield said.
"Get independent advice from the union immediately on being asked to sign any material from ABC."
"Childcare workers will be able to win a stronger voice in their workplace, and across this important industry, by working together and being active in campaigns to improve childcare pay and childcare policy.
"Our aim is to give a voice in this important workplace to ensure we have some power to control our own futures — and not allow the millionaire profit-takers to decide what is good for children, and what is good for workers in this industry."
Margaret Gleeson
[The author is a children services community development officer working in local government and is a member the United Services Union and of the Socialist Alliance.]
From Green Left Weekly, September 29, 2004.
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