Just 5 per cent manage desired shift from casual to permanent work
Less than five per cent of the more than 550,000 long term casual workers in Australia wanting to shift to permanent employment have been able to do so, unions say.
Less than five per cent of the more than 550,000 long term casual workers in Australia wanting to shift to permanent employment have been able to do so, unions say.
The Australian Council of Trade Unions also warns that amid the nation’s cost of living woes casual workers were doing it tougher than others, with 53 per cent reporting they were financially worse off than a year ago compared to 47 per cent of permanent employees.
In a new analysis of Australian Bureau of Statistics data on worker type, the ACTU calculates that 554,000 casual workers who have been with their employer for at least 12 months want to convert to permanent work, but only about 28,000 managed to do so.
Under current IR laws, employers can too easily stop casual employees wanting to convert to permanent roles, the research note “Closing the Casual Work Loophole” says.
ACTU president Michele O’Neil said the research confirmed “too many casuals are casual in name only.”
“We need to stop employers rorting the system and ensure that the right to conversion for workers who chose to be permanent is clear and accessible,” Ms O’Neil said.
“If we are to tackle this cost-of-living crisis Australian workers need reliable jobs so they can have reliable incomes. Workers whose jobs are regular and ongoing should have the choice to become permanent workers.”
The ACTU paper backs the Albanese government’s second tranche of its Closing Loopholes Bill amid an intense debate on casual workers and the gig economy. A Senate committee hearing on the bill resumes on Monday.
Workplace relations minister Tony Burke struck a surprise deal with crossbench senators Jacqui Lambie and David Pocock on the last sitting day of parliament in 2023 to split the government’s IR bill, which saw legislation passed on labour hire changes, new rights for union delegates and the criminalisation of wage theft.
But reform to casual worker arrangements and the gig economy was put off for further negotiation. Senators Lambie and Pocock have both warned they do not want to pass laws that create burdensome red tape for small businesses, and will be closely scrutinising the amended legislation.
Australian Industry Group chief executive Innes Willox has said some of the proposed changes would have “adverse consequences” and it should work with employers to deliver a workable bill.
“They need to work with industry, not work against it, if they want to make sure they don’t inadvertently blow up parts of the economy,” he said.
The ACTU paper says the new bill “would introduce a commonsense definition of casual employment, and a fairer pathway for an eligible employee to choose to become permanent.
“For many, and especially those on the frontline of the cost-of-living crisis, it would provide them with much needed security in their lives. For those employees who prefer casual work, it enshrines their right to remain casual.”
The paper notes ABS data showing there are 2.73 million casual workers in Australia, about 70 per cent of whom have worked for their employer for more than 12 months. About 29 per cent of those long term casuals, around 554,000, were looking to convert to permanent roles, the ABS says, but just 1.4 per cent have made the transition.
Changes to workplace laws introduced in 2021 by the Morrison government made it easier for employers to categorise workers as casual, allowing them to avoid leave entitlements and job security conditions, it says.
And they made it more difficult to convert from casual to permanent employment, given an employer could reject a request to do so on “reasonable business grounds”, which the note describes as “an incredibly broad exemption that has proven almost impossible to challenge in practice.”
Challenges to the Fair Work Commission were also made more difficult as both sides had to agree to the arbitration, the paper says, noting only four cases have come before the FWC in three years.
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