‘The Great Sacking’: Aussie jobs on the chopping block

A leading employment expert has warned overpaid workers could be on the chopping block, as companies move to cut costs.

A Brisbane employment lawyer is calling on workers to buckle down and throw quiet-quitting to the curb, following the release of new forecasts which indicate the ‘Great Sacking’ could be upon us.

NB Employment Law director Jonathan Mamaril says years of increased wages due to the pandemic and the cost of living crunch has driven employers to rethink their payroll as they look for ways to make cuts to their expenditure.

One particular cost area that’s risen in recent years is the Wage Price Index (WPI) which measures the price of labour.

NB Employment Law director Jonathan Mamaril, warns the Great Sacking is upon us. Picture: LinkedIn

According to the Australian Bureau of Statistics (ABS), the WPI has increased by 1.5 per cent in the three years since March 2020.

While there was a slight dip between March 2020 when the pandemic first started, to September 2021, the WPI is now sitting at 3.7 per cent – the highest it‘s been since September 2012.

Wage growth has also soared from September 2020 to March 2023, with the bureau recording a 3.8 per cent climb in the private sector and 3 per cent increase in the public sector.

The latest Average Weekly Earnings Report found the average adult earns $1875.20 a week, with this varying depending on the type of work, which sector the role is in and if the employee works any overtime.

Mr Mamaril implied all these costs add up, and claims mid-to-large sized businesses are in turn exploring restructuring and redundancy options in a bid to make cutbacks to company spending.

“The first major wave of the wages correction cycle is likely to hit just before Christmas, extending into the first quarter of 2024,” Mr Mamaril told the Australian Business Network.

“Overpaid employees will be the first on the chopping block. In many instances, desperate businesses were forced to pay 30 per cent above industry and job level averages to secure staff.”

Other jobs likely to go are those that can be outsourced, such as roles in administration, human resources and marketing.

“Businesses are still happy to pay top dollar for highly skilled and experienced staff who deliver results,” Mr Mamaril said.

“(But) the staff overpayment days of last year, where employees dictated conditions and salary expectations are over.”

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Those overpaid will be first on the chopping block. Picture: iStock

Mr Mamaril’s warning comes as Business SA chief executive Andrew Kay urged employees to stop working from home or risk losing their jobs.

He told news.com.au working from home could lead some “employers choosing to outsource certain services to the best offer – typically offshore – rather than employ workers who they never see in the office anyway”.

“If we assume that artificial intelligence and digitalisation are going to reshape the workforce in the years ahead, we need to seriously consider the impact of any policy decisions that make attendance in the workplace the exception rather than the rule,” he warned.

Mr Kay said he had “serious concerns” about the trend of employees working from home and urged employers to tackle the issue head on.

“Employers need to create environments where people want to engage and collaborate with their colleagues in person, even when flexible arrangements are possible,” he said.

Employees working from home could also potentially be at risk. Picture: iStock

The ‘Great Sacking’ already upon us

The ‘Great Sacking’ appears to have already commenced for some workplaces including big four bank Westpac, which fired 751 people across Australia in seven weeks.

According to the Finance Sector Union (FSU), Westpac has axed hundreds of jobs across 21 areas since the end of May, with more anticipated cuts to come.

In May, 34 workers lost their jobs across the IT, fin markets and private wealth, consumer and business banking departments in a span of two days.

Westpac has fired 751 people in seven weeks. Picture: NCA NewsWire / Morgan Sette

A fortnight later in June, more job cuts took place with five branches closing leaving 22 staff out of jobs.

An additional 301 staff were cut from the program delivery changes, consumer and business banking department that same day as well as seven other employees from the Chief Transformation Office.

In the same month, another 290 people were let go across various banking, home loan, group operations, brand and marketing, corporate, business and consumer departments.

That brings us to July, where 97 people are understood to have lost their jobs at Westpac to date.

Earlier this month, the bank announced it would cut 300 roles from its head office, customer service and contracting positions, with these sackings included in the union’s tally.

A Westpac spokesperson said the cuts were first flagged at the beginning of last year and added the impacted employees were being “supported”.

“In February 2022, we announced plans to simplify the bank, improve accountability and reduce costs. This ongoing reorganisation is part of our simplification and cost reset program,” they said.

“We’ll be supporting our employees as we make these changes.”

Meanwhile CommBank has also shipped some roles offshore recently, with at least 40 people losing their jobs in April, according to the FSU.

These job cuts brought the bank’s total number of sackings to 500 across the last two years.

A CBA spokesperson told news.com.au they were moving “to upskill our messaging teams to support customers both over the phone and through messaging”.

Some workers at Geelong’s Ford factory have also lost their jobs. Picture: NCA NewsWire / Damian Shaw

Also last month, car manufacturer Ford announced more than a fifth of its Australian workforce would be slashed, with those at Victoria’s Geelong plant to be mostly impacted.

“The majority of these will be in product development and design, with a small number in other functions,” Ford said in a statement.

“The changes are part of Ford’s global drive to improve efficiency and transform its operations to meet future needs.”

According to the ABS, the unemployment rate is currently sitting at 3.5 per cent, with 14,003,400 people in jobs. The number of unemployed Australians has increased by 1100 since April.