Extract from The Guardian
Association warns of ‘unintended consequences’ of phone line to dob in unemployed people who reject job offers.
Last modified on Thu 25 Feb 2021 03.32 AEDT
The nation’s top retail peak body has joined the small business lobby in opposing a government hotline to dob in unemployed Australians who refuse job offers, arguing it could lead to “bogus claims” and undermine their employment prospects.
On Tuesday, the Morrison government sparked outrage from welfare groups when it announced that a $50-a-fortnight increase to welfare benefits would be accompanied by the creation of a hotline for employers to report jobseekers who refuse work.
While the government argues that employers have raised the issue, department data reviewed by Guardian Australia on Wednesday showed as few as 0.1% of all jobseekers are typically penalised for refusing an employment offer.
Asked about the plan, the Australian Retailers Association chief executive, Paul Zahra, told Guardian Australia he was concerned the phone line may actually hurt the employment prospects of jobseekers looking for work.
“The mutual obligation requirements for jobseekers need to be fair and measured and assist those on the job hunt to remain confident and in good mental health,” he said.
“We are concerned about the unintended consequences of having a hotline to report people who decline job offers.
“This may lead to bogus claims and add to the stress some people face in their search for employment – which could ultimately undermine their confidence and their employment prospects.”
However, another leading employer group, the Australian Chamber of Commerce and Industry, believes the phone line is worth trialling provided it does not “increase the punitive elements” employment services program.
Jenny Lambert, acting chief executive of the Australian Chamber of Commerce and Industry, said there was “anecdotal evidence” of jobseeker payment recipients turning down work, but the peak body did not have “visibility as to the number”.
“We think gaining information from the market is very important to improve how the system is managed but we don’t believe the way to help people into jobs is to increase the punitive elements of the program,” she said.
“The focus should be on supporting people into work.”
Welfare groups and unions have warned the hotline, dubbed “jobdobber” by some critics, would give unemployed Australians even less power in a dynamic already skewed against them.
The phone line was presented as a new initiative to clamp down on those refusing work, but jobseekers have long faced penalties within the welfare system if they refuse to take up “suitable” employment offers and job agencies are required under their contract with the government to investigate potential cases.
Under the current rules, those found to have declined a suitable job generally have their payments cancelled and must wait four weeks before applying again for benefits.
Analysis of department compliance reports by Guardian Australia shows a minuscule number of “work refusal” penalties are issued, despite the system typically issuing more than 1m payment suspensions each year.
In July 2019 to December 2019 – the last six-month period not affected by the pandemic and the suspension of mutual obligations – 571 work refusal penalties were recorded by the department.
That compares with a total of 886,276 jobseekers recorded in the system over the period, meaning 0.06% were issued such a penalty.
In the previous 12 months, July 2018 to June 2019, 1,119 work refusal penalties were issued, 0.12% of all jobseekers over that period.
Between 1 January and 30 June 2020, a period when mutual obligations were suspended for a few months, 114 work refusal penalties were detected – 0.011% of all jobseekers.
Asked about the need for the reporting line on Tuesday, the social services minister, Anne Ruston, said the employment minister, Michaelia Cash, was “very keen” for the hotline to provide “some kind of understanding of the quantum of this particular issue”.
“We certainly hear a lot from employers and employer groups that that is the case,” she said. “And so we believe if these employers are refusing jobs when the employer believes they are capable of taking them, we want to follow up on that up.”
Cash, whose department will administer the phone line, also said the government received “so many reports” of people turning down work after turning up to interviews to “tick a box”.
“My department will, of course, investigate all of this,” she told 2GB on Wednesday.
“They’ll speak to the jobseeker, they will make sure that everything was OK with them. But ultimately, we believe, as a government, if you are able to accept a job, you should do that.”
Guardian Australia also approached the Business Council of Australia and Ai Group for comment on the reporting line and whether their members were concerned about jobseekers turning jobs. The Business Council did not comment and Ai Group said it had no view on the issues raised.
The Council of Small Business Australia chief executive, Peter Strong, told Guardian Australia on Tuesday that the idea of an employer hotline lacked compassion, and showed a lack of understanding of the reasons why unemployed Australians might turn down job offers.
Kristin O’Connell, a spokesperson the Australian Unemployed Workers Union, said the reporting line would allow job agencies and employers to force jobseekers into “unsafe and underpaid jobs”.
“The government will claim there are rules in place to protect people but their track record exposes their complete lack of intention to enforce these rules,” she said.
The Department of Employment was approached for comment.
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