DEWR's Labour Hire Shift Sparks Union Fury Over Vulnerable Service Impact
A significant outsourcing move within the Australian government's workplace relations department has ignited fierce criticism from unions and workers, who warn that vulnerable citizens seeking assistance could face deteriorating service quality.
Contract Workers Replaced by Third-Party Provider
Thirteen call centre staff employed on short-term contracts at the Department of Employment and Workplace Relations (DEWR) face replacement by a third-party contractor, according to their union. The workers have reached the maximum allowable period for short-term positions under current employment laws designed to improve job security.
Rather than transitioning these experienced staff to permanent positions, the department intends to let them go. In what union representatives describe as an outrageous development, at least one worker has been approached by a third-party provider to effectively reapply for their own job.
Core Work Outsourcing Contradicts Government Commitments
The department has acknowledged that these positions involve "core work" - precisely the type of government functions the Albanese administration pledged to keep within the Australian Public Service rather than outsourcing to private contractors.
A DEWR spokesperson stated that while the department prioritises APS employees for core functions, "limited use of labour hire" remains permissible where operational needs require it. "The department values the contribution of all staff," the spokesperson emphasised, noting that all contact centre workers receive comparable pay, conditions, training, and flexible working arrangements.
Union Warns of Knowledge Loss and Service Deterioration
Beth Vincent-Pietsch, deputy secretary of the Community and Public Sector Union (CPSU), expressed grave concerns about the outsourcing's impact on service quality. She highlighted "huge contracts" for contact-centre work involving outsourced staff who interact with "very vulnerable people" often unaware they're speaking with private contractors rather than government representatives.
"They are losing people with experience and capacity who are performing well, taking difficult calls," Vincent-Pietsch warned. "Any new people coming in the door are not going to be able to have the capacity to take those phone calls straight off the bat because they do take expertise and knowledge."
Workers Report Deteriorating Service Standards
One affected worker described feeling "gobsmacked and disappointed" by the department's decision. They emphasised that handling calls from vulnerable Australians awaiting government payments requires specific expertise.
"That core work needs to be done by experienced APS staff, absolutely," the worker insisted. "You need the knowledge, you need the empathy, you need the understanding."
The worker reported that previous outsourcing of thirty DEWR contact centre positions last year had already resulted in dramatic increases in call wait times - ballooning from approximately twenty minutes to two and a half hours or more in some instances.
Broader Pattern of Government Outsourcing
This development occurs within a broader context of government agencies increasingly relying on private call centres. Guardian Australia has documented extensive use of external contractors across multiple departments including the Australian Taxation Office, Centrelink, and the National Disability Insurance Agency.
Labour's efforts to reduce reliance on external consultants and outsourced workers appear to have stalled just two years after the government directed agencies to bring skills back in-house.
Pay Disparities and Training Concerns
Significant pay disparities between outsourced and public service workers have emerged as a contentious issue. Starting salaries at private call centres reportedly average around $52,800 annually, compared to over $72,000 for many public servants performing similar roles.
Workers have described systems marked by inadequate training and compensation structures that prioritise profit margins over employee wellbeing and service quality. The employment minister, Amanda Rishworth, declined to comment on the specific situation at DEWR.
Operational Justifications and Legal Constraints
The DEWR spokesperson explained that the department considers operational requirements, workforce demand, and available budgets when undertaking call centre recruitment. They noted that legislation limits their use of fixed-term contracts, creating workforce management challenges.
DEWR has already filled approximately fifty-five positions with employees provided by external companies - arrangements both the government and union describe as "labour hire." Vincent-Pietsch argued that DEWR, as the department responsible for workplace standards, should serve as the "employer of choice" rather than outsourcing critical functions.
