VICTORIAN LABOR S PLAN TO SECURE LOCAL JOBS FOR LOCAL WORKERS APRIL 2013 VICTORIAN LABOR OPPOSITION
THE PROBLEM "After 2 years in government the Coalition has failed to deliver a substantive jobs and investment plan" Victoria continues to remain at the bottom of the jobs pack under the Napthine Government. In the last two years jobs growth in the services industry which accounts for approximately two thirds of Victorian jobs has fallen to less than a third of the level experienced under the last two years of the Labor Government (ABS Cat 6291.0.55.003; released 21 March 2013). Last month there were 9,300 additional Victorians out of work due largely to the Napthine Government s failures to generate employment through infrastructure projects and cuts to the public service. It is no surprise that Victoria has hit rock bottom. After 2 years in government the Coalition has failed to deliver a substantive jobs and investment plan to either generate or save jobs in Victoria. Financial and Service Sector Jobs at risk While much attention has been placed on the decline in manufacturing in Victoria, jobs continue to be lost in the financial and service sectors. In Victoria over the last two years we have seen a number of companies make the decision to either send jobs off shore or reduce their Victorian workforce. While individual companies are making these decisions according to their own circumstances including reacting to international demands, the high Australian dollar or a flow on effect from job losses in the manufacturing sector, the question still remains what action did the Coalition Government take to persuade these companies to keep these jobs in Victoria? The NIEIR 1 report published in 2012 estimates that an expected 700,000 to 1 million jobs will be moved off shore in the next three decades. Victorian Labor believes that action is needed to address the off-shoring of these high skilled services and financial sector jobs. Occupations experiencing high rates of off-shoring are in ICT, financial services and administrative occupations. The NIEIR report advised that the following classifications are at greatest risk: 1. General Clerks 2. Specialist Clerks 3. Accountants 4. Bank Workers & Credit and Loans Officers 5. Software and Applications Programmers 6. Call Centre and Telemarketers 7. Contract, Program and Project Administrators 8. ICT Support Technicians 9. Keyboard Operators All these classifications have a potential for a range of functions to be undertaken remotely. For the finance and insurance sector the proportion of jobs at risk is almost twice the rate for service industries as a whole. Victorian Labor believes that Victoria should be an attractive place for companies in the services and financial sectors to do business. Victorian Labor will work with business, unions and industry bodies to make sure that Victoria is seen as the best place to do business. 1 Off Shore and off work; The future of Australia s service industries in a global economy National Institute of Economic and Industry Research September 2012. 3
Kevin, Administration & Stock Control Kevin worked for a large company in Tullamarine in administration and stock control. After working for the same company for years Kevin and 150 of his co-workers were made redundant when the company closed its Melbourne operation. "I worked for the same company for 36 years, and then one day my job was gone. If we don't do more to keep service sector jobs here, we're not going to have the skills to attract jobs in the future. Government's got to play a role". "I thought I had a job for life. Now I'm looking for work, and there just aren't the opportunities. I'm competing with kids in New Zealand and India and the Philippines, and I can't live on those wages." "I worked for the same company for 36 years, and then one day my job was gone. If we don't do more to keep service sector jobs here, we're not going to have the skills to attract jobs in the future. Government's got to play a role." 4
"After twelve years of service with my bank in Melbourne, my team and many hundreds of others were given their marching orders late in 2012. Understandably, most people s account of their personal experience of offshoring starts with the loss of their own job. About four years ago my bank embarked upon one of the most extensive restructuring programs in its history. Change can be painful, but if done right, rewarding in the end. For those in the coal face left to do the work, it has left much frustration and uncertainty: job security obviously the primary concern. Another sore point is increased workloads due to the reality that workers abroad do not have the comparative business and technical expertise that we have acquired here over years in some instances, decades. These skills are effectively lost as a result of offshoring. I do want to make it clear that I do not begrudge my bank or any other company creating job opportunities for people overseas. I have developed some strong friendships among my colleagues in Bangalore. we had all been made redundant. All told, I consider myself among one of the lucky ones. Unlike many of my colleagues, I don t have any children or major debts to manage. But the job market is tight and highly specialised, especially in technology. Walking straight into another job isn t simple. Since my area was notified of its impending demise, no one has been able to secure a job outside of their old bank. Some have succeeded in acquiring temporary six month secondments to other areas within the bank but these are unlikely to lead to a permanent position. As to the future, offshoring appears to be a worrisome trend. Attending my outplacement program at a labour hire company I was staggered at the sheer number of people from other well-known corporations whose jobs are being offshored most of it skilled labour. If there is a required capability that cannot be met by the workforce of a particular country then it is reasonable to look elsewhere in the world but in Australia, we have a fantastic IT capability." So finally when the day came in November last year when I and the rest of my team were quietly summoned to a meeting, I wasn t shocked or surprised to be told that Maurice, IT Worker for one of the big four banks. 5
THE SOLUTION "Victorian Labor believes that jobs in the services and financial sectors are too important to be lost. " A plan to secure local jobs for local workers When Labor released its plan for jobs and growth we said that this was just the start of putting forward policies to get Victoria back to work. Victorian Labor believes that jobs in the services and financial sectors are too important to be lost. As the biggest purchaser of services the State Government has an important role to play to ensure where possible services are sourced locally. Given that two thirds of Victorian jobs are in the services sector Labor believes that there should be achievable targets and policies in this sector. To assist in this a future Labor Government will establish a tripartite services sector round table modelled on the Commonwealth Services Sector Leaders Group to assist in the development of the plan. But Victorian Labor will be a model purchaser and we will deal with people who are fair employers. Pre-qualification A future Labor Government will establish a Services and Financial Sectors Procurement Register of suppliers from which the Victorian Government will source its services and financial sector purchases. This will be located within the Victorian Government Procurement Board who currently oversees such state purchasing contracts in a range of areas including Legal Services, IT, Vehicles, Advertising and Communications. A Fair employer Victorian Labor is committed to ensuring that Government procurement decisions are based on ethical as well as value for money considerations. Victorian Labor believes that Government has a responsibility to lead by example. This means that Government should not be associated with the purchase of services produced from the labour of exploited workers. Businesses that tender for contracts from Victorian Government entities will be required to comply with all applicable collective agreements, employment legislation and Awards, including proper occupational health and safety standards, superannuation and workers compensation obligations throughout the life of the contract. Victorian Labor will strengthen reporting requirements to ensure that ethical procurement policy is also complied with. To ensure compliance with this requirement, Labor will ensure that any company supplying services to the State Government, (including any other sub-contractor or third party in the supply chain) provide regular updates to the VGPB. The VGPB will be given responsibility to investigate complaints of non compliance. Keeping jobs local Preference will be given to companies that provide sustainable employment opportunities for local workers. Where companies have committed to provide the workforce locally, Labor believes that there should be transparency in the contracts to ensure the service provisions are adhered to throughout the life of the contract. Labor will ensure that any contracts signed will continue to protect the state s funds and to assure a genuine quality competitive market services. The Call Centre Code Businesses that tender for call centre contracts from Victorian Government entities including all in budget agencies, statutory authorities and Government owned corporations - will be required to comply with and demonstrate their commitment to the Victorian Government Call Centre Code at the pre-qualification stage of the tendering process. Data Security Given that services often involve the passing of information and data on individuals, Australia should introduce country of origin legislation for services to match similar requirements for manufactured goods. Such a requirement would allow consumers to make decisions about which providers they choose to support based on where they would like their services to be delivered from, who is handling their data and where it may be stored. Victorian Labor in Government will lead the way in ensuring information about private, personal, financial and health records of its citizens is kept secure and protected in accordance with Australian laws whenever procurement arrangements are entered into. Victorian Labor will seek for the issue of data security be placed on the COAG Agenda within the first twelve months in office. 6
Laura, Call Centre Worker Laura works full time for a large international contract call centre in Melbourne's Eastern Suburbs. Laura believes it is important that call centres are operating on a level playing field. The Call Centre Code introduced under the Labor Government improved conditions for workers in our industry. Governments should lead by example in buying services. Labor developed the call centre code for state government contracts, and it improved conditions right across the industry for workers like us James, Risk & Governance for one of the big four banks "My name is James I am a 43 year old mathematician with a PhD in astrophysics. Up until 6 months ago I was employed by one of the big four banks. At the end of September 2011, after four years of working with the bank and having just had a very positive annual review, I was put on redeployment. I was offered a job at a reduced grade in the Risk part of the bank. As my youngest child had arrived (the day after the redeployment notice) I took the job. workplace rights. During 2012 whenever a Melbourne position in my group became vacant, the manager had to justify why it should not be sent to Manila. The long term consequences of offshoring jobs might not be felt for several years, but short term they will be felt by those that lend their money to or borrow from that bank." Within a month of me arriving many of my new colleagues were given notice that their jobs were being "lifted and shifted" to Manila and Bangalore. At least one of my colleagues had to travel to Bangalore to train his replacements in an effort to transfer at least some of the knowledge that he would take away with him when he left. I became part of the "lift and shift", searching for offshore staff to replace my colleagues. When I travelled to Manila to train them, I learned that not only were the new staff on wages much lower than equivalent Australians, but they had worse and fewer Conclusion Victorian Labor believes that, in order to ensure there are jobs for Victorians and that our state is delivering quality services and value for taxpayers money, there must be a strong and competitive local services industry. We believe our strategy will assist in promoting and sustaining that industry that is about keeping jobs locally. 7
8 Authorised by Daniel Andrews, Level 1/157 Spring Street, Melbourne VIC 3002 Printed by Kosdown Printing, 10 Rocklea Drive, Port Melbourne VIC 3207