Labor cries ‘JobTaker’ as wage subsidy gets over the line

The Coalition has relied on One Nation and Centre Alliance to pass its $4bn wage subsidy for young workers, in the first major fracturing with Labor over a COVID-19 relief measure.

Anthony Albanese accused the Prime Minister of undermining job security for older employees in the middle of a recession. Picture: Gary Ramage

The Coalition has relied on One Nation and Centre Alliance to pass its $4bn recession-busting wage subsidy for young workers, in the first major fracturing with Labor over a COVID-19 emergency relief measure.

Labor and the Morrison government were on Wednesday locked in a stalemate over the signature budget package, which is estimated to create 450,000 jobs, with the opposition insisting on a “job security” amendment that would prevent employers sacking existing workers in order to qualify for the scheme.

While One Nation supported Labor’s amendment on Tuesday, it backflipped on Wednesday night. With the backing of Centre Alliance’s Stirling Griff, the government had the numbers to drive the JobMaker hiring credit through the Senate unamended by 30 votes to 28 despite ALP opposition.

Labor employment and industry spokesman Brendan O’Connor said the scheme “now exposes existing workers to dismissal or a reduction of hours”, calling the Senate vote “shameful conduct”. He said the government had made a “grubby deal” with One Nation.

“Not only is this grossly unfair, but it will fail to deliver net additional jobs that the government has promised,” he said. “The scheme is called JobMaker. Right now, it looks more like JobTaker.”

One Nation leader Pauline Hanson met Josh Frydenberg on Wednesday afternoon and said she was satisfied with the protections in the bill, while also noting employers “can’t just go and sack people” under existing laws. The party insisted no “side deals” had been made.

Leading business groups agreed with the government the hiring credit and existing fair work laws contained sufficient safeguards to prevent misuse of the scheme and urged Labor to pass the package as quickly as possible.

Anthony Albanese accused Scott Morrison of undermining job security for older employees in the middle of a recession as he questioned why the government would oppose Labor’s amendment “to ensure a 37-year-old won’t get sacked for someone younger and cheaper”.

The Prime Minister, who said the necessary protections were in place, said the Opposition Leader was “seeking to create fear in a pandemic” and that ­delaying of the bill was irresponsible and reckless.

Under the JobMaker hiring credit plan, an eligible employer would receive $200 a week for hiring an unemployed person aged 16 to 29, or $100 a week for someone aged 30 to 35, with a maximum benefit of $10,400 for each position created.

The new employees must work at least 20 hours a week.

To receive the subsidy, an employer must show the hiring of that person — between October 7 this year and October 6, 2021 — has increased the business’s headcount and wages bill compared to September 30.

“It is only available for ­additional jobs. You cannot reduce your current workforce,” the Prime Minister said. “Hours (of existing workers) cannot be reduced, people cannot be let off and rehired under these ­arrangements … There are also the protections under existing industrial relations laws and the integrity measures that are available cannot reclassify workers from contractors to employers to receive the hiring credit.”

Labor, the Greens, One ­Nation, Jacqui Lambie and Rex Patrick on Tuesday night voted for the job security amendment, while the same grouping plus Senator Griff passed an amendment that requires greater transparency of the scheme.

Taxation Commissioner Chris Jordan would be forced to report each month on how many businesses and employees have received the payments, as well as the payroll for each relevant business. The House of Representatives, where the government has a majority, rejected the amendments on Wednesday morning and sent the bill back to the Senate, where it was eventually passed unamended.

Australian Industry Group chief executive Innes Willox warned preventing an employer from terminating an employee to remain eligible for JobMaker would be “overly restrictive”, saying there were legitimate ­reasons for termination.

“The employer that does terminate an employee would still need to satisfy the payroll and headcount conditions so the Labor suggestion seems ­unnecessary,” he said.

The Treasurer hit out at Labor for delaying certainty for businesses and noted the unemployment rate for people aged 15-34 was 10.2 per cent, more than double the 4.7 per cent unemployment rate for Australians aged 35-44.

The first wage subsidy payments will be made retrospectively from February 1 for the December quarter.

A Greens spokesman pointed out the party co-sponsored the “job security” amendment with Labor after initiating the change to the bill.