In the biggest shake-up of job centres since the Howard government's replacement of the Commonwealth Employment Service (CES) with the privatised Job Network in 1998, the federal Labor government has created a new Job Services Australia (JSA) network. It halves the number of not-for-profit agencies involved and cuts thousands of jobs.
Both private employment service providers and charities are reeling after the government released details of the successful tenders for the JSA on April 2. In a "streamlining" of the service, the number of centres has been cut. Sixty providers that applied for reappointment to the new network were dropped, according to ABC Radio's PM program on April 2.
Frank Quinlan, the executive director of Catholic Social Services Australia, told ABC radio's AM on April 3: "We've heard a lot from this government since before they were elected about the value that they placed on community sector organisations.
"It's very difficult to reconcile what we've heard with the results that seem to suggest that many community organisations, including those with a very good track record, don't have a place in these kinds of programs."
The Australian Greens have called for an audit of employment services contracts. "Thousands of committed and dedicated workers are about to lose their jobs at a time when their skills are most needed", Greens Senator Rachel Siewert said on April 3.
The Greens will refer the matter to a senate committee if the government doesn't agree to the demand.
Socialist Alliance national co-convener Dick Nichols called for the jobs network to be returned to public ownership. "Finding unemployed people work should be a service provided free by the government", Nichols told Green Left Weekly. "Let's establish a modernised Commonwealth Employment Service dedicated to finding unemployed people work and building up their skills. That would also be a cheaper option than the present massive hand-outs to private agencies."
Nichols also called for the dumping of the harassment of unemployed people by privatised providers, which often force people into underpaid and unsuitable jobs so the organisation can collect its commission from the government.
With the possibility of 1 million people being out of work by the end of 2010, he claimed that such harassment can only get worse.
"Even the best CES for the 21st century won't find the unemployed work in this recession", Nichols added. "That will only come if the Rudd stimulus packages are expanded into a 'Green New Deal' that creates the jobs needed to build Australia's infrastructure for a sustainable future — such as a transition from coal-fired to renewable electricity. In this way, the government could provide all those who want work with a job."