A report by the Antipoverty Centre,听published by GetUp!, reveals听just how punishing 鈥渕utual obligation鈥 schemes are for those on JobSeeker and Youth Allowance.
Punishment for Profit: How private providers became the only winners in Australia鈥檚 cruel employment services system听reports听the experiences of 600 welfare recipients and details the failures of the privatised employment service industry.
The Antipoverty Centre said that while the first 鈥渕ajor agenda item鈥 at last week鈥檚 Labor conference was 鈥淎n economy that works for everyone鈥, millions are being left behind.
鈥淭he public is out of pocket $4 billion a year while (un)employment providers make millions in profits rorting the system 鈥 it鈥檚 time for Labor to back up its words with action.鈥
,听published on August 16,听revealed the federal government spends $4 billion a year on Workforce Australia, and other employment services, that 鈥渄o little more than waste time and cause harm to the millions forced to use them鈥.
Unemployed people are forced into the coercive 鈥渕utual鈥 obligations system, which have detrimental impacts on their health and ability to get and maintain a job. 鈥淎s a result of interaction with the system, many people experiencing bullying and abuse in employment services can feel that suicide or self-harm are their only options.鈥
Surveys of welfare recipients,听for听Punishment for Profit,听show 93% said 鈥渕utual鈥 obligations have had a negative effect on their mental health.
From 278 responses, anxiety was mentioned 135 times, stress 112 times and depression 78 times. More than 40% said they experienced bullying or abuse by a provider, 53% said they had been mistreated and 34.81% said they had experienced discrimination.
Just 7% said their job agency had helped them to find a job and 2% said 鈥渕utual鈥 obligations were useful.
Origins of mutual听obligations
The report explores the origins of the 鈥渨elfare-to-work鈥 ideology that underpins the 鈥渕utual鈥 obligations鈥 system and programs such as work-for-the-dole.
As part of its neoliberal privatisation agenda under听the Prices and Incomes Accord, the Paul Keating Labor government鈥檚听听report sought to deregulate government services and break up union control. This allowed private providers to compete for licenses with the Commonwealth Employment Service (CES).
The complete privatisation of the CES happened under the John Howard Coalition government when 鈥渕utual鈥 obligations were developed, enforcing more onerous expectations on the unemployed.
These expectations听now听include compulsory training programs, applying for about 20 jobs a month even if the work is not relevant, attending regular in-person meetings with little purpose, being pressured into Work for the Dole programs and being penalised for non-compliance, with the ultimate penalty being a payment cut for 4 weeks.
Department of Employment and Workplace Relations data听shows 20% of those under the听online Workforce Australia system听(18,815)听were given a听demerit compared to 39% (110,130) in face-to-face services. Of 1480 in the 鈥減enalty zone鈥, with a 50-100% cut off of their payment, 490 were First Nations, 325 had a disability and 150 were parents.
The report also detailed how private providers became concentrated, becoming mega听organisations 鈥 including AimBig, APM and Salvos Employment Plus 鈥 with significant influence over governments.
APM has donated more than $700,000 since 2011: $334,433 to the Coalition and $385,315 to Labor. The value of APM鈥檚 employment contracts is about $787 million, the report noted.
Work for the Dole
The report found that 287 out of 348 Salvos stores use unpaid labour through the Work for the Dole program. Fifty-seven per cent of Salvos revenue comes from government sources.
Employment services programs funnels 鈥渂illions in public money to poverty-profiteering organisations that make cash by enforcing cruel government policies鈥.
Workforce Australia replaced the JobActive system in July last year, despite calls by activists, unions and others to replace it with something genuinely helpful. It added a 鈥減anopticon layer鈥 to the 鈥渕utual鈥 obligations program 鈥 further outsourcing the monitoring of people on welfare to recipients themselves.
鈥淧eople in poverty are forced to navigate a complex, badly designed and often broken online system to collect and log enough points to get a meagre welfare payment,鈥 the report noted.
It said the mutual obligations system, coupled with payment rates, is 鈥渢rapping people in long-term unemployment鈥. The increase in the average time on JobSeeker has gone from about 2 years in 2014 to more than 5.5 years.
It said employment supports need to be 鈥渞eoriented away from punishment and provider profits鈥 towards meeting the needs of those wanting to find paid work.
An income-first approach
Punishment for Profit听makes听nine recommendations aimed at ending the victimisation of the poor.
They are: raise income support above the Henderson poverty line and work with those receiving support to develop a sophisticated poverty measure; invest in quality public housing; end subminimum wage work; guarantee jobs with fair pay; end punitive and coercive compulsory 鈥渕utual鈥 obligations; develop community-led employment programs; integrate employment assistance with other social supports; ensure democratic control and oversight of services; return听employment听services听to听public听hands; and ensure work is available to those with disability, illness, caring duties or other responsibilities.
鈥淧eople looking for work need help not harm,鈥 the report concluded.
[Read the full听听report .]