Union fears another 600 Serco contractors with NDIS to be cut, with Services Australia already due to axe hundreds

More than 1200 Melbourne and regional Victorian based call-taking contract jobs could be lost, a key union is warning.

Staff manning the phones at the Telstra Call Centre in Sydney CBD. Under new Federal Industrial Relations Laws, Telstra will be able to keep unions out of their offices if all its staff are on individual contracts.

More than 1200 Melbourne and regional Victorian based call-taking contract jobs could be lost with Services Australia and the National Disability Insurance Agency, a key union is warning.

After revealing 610 call-takers, employed by Serco Group, were told on Thursday they would lose their jobs with Services Australia in two weeks as the department selected different contractors to perform the same duties, Australian Services Union Victorian Private Sector Branch secretary Imogen Sturn said she is now concerned for another 600 Serco staff contracted to work for the NDIA.

“We are concerned for approximately another 600 jobs on the Serco NDIA contract based at their Dandenong and Newborough locations. That contract currently expires in October this year and we are yet to receive an update,” she said.

“Many of these Government contracts require staff to work on site so it’s not feasible for many workers to move to new contracts and roles on the opposite side of the city, and of course the Newborough site is a regional location.

“Further, we don’t believe the new contract providers have much of an operation in Victoria and it appears that WFH will not be an option, although we haven’t been able to get this confirmed.”

Dandenong is located in Melbourne’s south east, and Newborough is located in the state’s east — about 140km from Melbourne.

It’s understood under Government Services minister Bill Shorten attempts are being made to redeploy Serco staff to other roles in the Australian Taxation Office ahead of the end of financial year, Defence and Home Affairs.

It is also believed there are broader attempts being made to expedite the recruitment of contractors into full-time roles in the public service.

The union on Thursday criticised the federal government over its handling of a Services Australia procurement process, which they estimate will leave about 610 Serco employees without a job in two weeks.

Services Australia contracted the Melbourne-based staff, located in Essendon Fields and Mill Park the city’s north, to support Australians through Covid-19, the Black Summer Bushfires and rolling flood crises among other tasks.

They were told on Thursday the company’s contract would expire on June 30. Instead new service providers TSA and Concentrix have been selected to deliver the services.

Ms Sturni was on Thursday critical of the move, blaming the Albanese Government.

“Most of these workers do not have the safety net provided by generous termination benefits and even for those who will receive a minimal termination payment, two weeks’ notice is a pretty shoddy thing to do to them,” she said.

“It is the responsibility of government to ensure that its procurement processes do not have unreasonable adverse effects on workers.”

She said the ASU will continue to call for a federal call centre code for contract call centre workers as a priority to ensure “workers have decent entitlements, fair classifications and secure work.”

A Services Australia spokesman said the Serco contract is ending on June 30.

“Services Australia conducted a competitive procurement process for a new supplementary call centre contract to provide services from 1 July 2023... Serco was not selected through this procurement process,” he said.

The NDIA have been contacted for comment.