Union report finds jobseeker program is ‘deeply punitive’ and there is a high level of dissatisfaction with services provided by private contractors

This article is more than 3 years old

This article is more than 3 years old

Jobseekers are reporting high levels of bullying and safety concerns about job agency providers, according to a report that describes the jobseeker program as “deeply punitive” and in need of a complete overhaul.

The Australian Unemployment Workers Union (AUWU) national advocacy hotline report, launched on Sunday, reveals numerous examples of dissatisfaction with the welfare services provided by private agencies on behalf of the federal government.

The report drew together a sample of 170 unemployed callers who contacted the advocacy hotline seeking advice about unemployment services.

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The federal government has contracted private companies to deliver welfare services and provide job agency services. In some cases they have erroneously penalised applicants or cancelled welfare payments.

Of the callers surveyed by the AUWU, 52% raised concerns about job agency bullying, while 30% raised safety concerns about work for the dole programs.

The report said: “The AUWU is deeply concerned by the data gathered. The broad spectrum of issues poses serious questions regarding the quality of services being provided by job agencies.

“The data exposes not only the unscrupulous and punitive practises of job agencies, but also the failure of the Department of Employment to effectively regulate the industry and ensure that job agencies follow the relevant government deeds and guidelines.

“Alarmingly, there were little to no consequences for job agencies that failed to uphold the government’s rules.”

It included statements from jobseekers about the difficulties they have faced.

Blake Hourigan said that he was scared to attend work for the dole programs after a series of bad experiences with job placement providers. He said he had worked at a farm that involved building gardens, carpentry and brickwork; all areas he had no experience in.

“The health and safety rules or regulations were almost non-existent. It was a miracle that no one was seriously injured,” he said. “Although I do believe work for the dole or other activities to help get jobseekers ready for work is a great idea on paper, that was not the case in the experience I had during my time.”

“I would rather live on the streets than to be afraid everyday I go to work for the dole.”

The number of penalties imposed by job agencies on unemployed workers had increased by 50% in the past financial year, the report found, citing data from the Department of Employment.

Guardian Australia has previously reported that Centrelink could face legal action from jobseekers over penalties or abrupt suspensions of welfare payments imposed by private employment companies.

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The AUWU report calls for an investigation into the jobseeker program and warns of the risks of further deregulation.

“Given the dysfunctional and punitive nature of the employment services industry, the Coalition’s recent push to give job agencies unprecedented powers to penalise the unemployed is inappropriate and dangerous,” it said.

The department has been contacted for comment.