Govt to Outsource Staff Relations

Date: 28 April 2000

Not content with outsourcing most of its functions, the Howard Government is now looking to outsource having to talk to its own workers.

According to cabinet-in-confidence correspondence from Department of Finance and Admininstration to a Commonwealth Government Agency, dated 28 January 2000, reference is made to cabinet requirements to implement Competitive Tendering and Contracting programmes.

As the controversial and expensive IT outsourcing program has been implemented in many Commonwelath agencies there is now a trend emerging for agencies to 'market test' or contract out Corporate Services Functions.

The Corporate Services functions in scope include payroll, OH&S, accounting, finance, property management, records management, fleet control, and in some cases workplace relations functions.

The most recent example of outsourcing is in Agriculture, Fisheries and Forestries Australia (AFFA) who are negotiating a contract with Price Waterhouse Coopers to undertake Human Resource functions including payroll, property management and Workplace Relations activities. Staff in AFFA were not given an opportunity to put their case forward and have not been told why they were not competitive.

It is possible that the CPSU will be meeting with Price Waterhouse Coopers to negotiate the next Certified Agreement in AFFA. This situation will be difficult as a contractor will not have the same level of knowledge or commitment to the Department or its staff than Departmental Officer. This is also contrary to Peter Reith's statements about the involvement of third parties.

Many other agencies have commenced reviews of their Corporate Services areas to prepare for market testing. These agencies include but are not limited to Attorney Generals, Veterans Affairs, Immigration and Multicultural Affairs, Centrelink, Bureau of Meterology, Environment and Heritage and Education
Training and Youth Affairs.

CPSU professional division secretary Matthew Reynolds says the there are a number of concerns about the approach:

Job Loss. At risk is well over 2000 jobs being taken out of the Public Sector. Less jobs will be created in the private sector and these jobs will be precarious. It is feasible that some of these jobs will not only move from their current location but be exported.

Privacy. The private sector is only subject to weak, self regulated privacy provisions, but will have detailed information on the locations, salaries and conditions for a range of public public servants, many in very sensitive or strategic positions.

Corporate Memory. The Australian National Audit Office in their reports and to a Senate inquiry have raised the problem of maintaining corporate memory.

Public Scrutiny. There are many instances of Government hiding behind 'commercial in confidence', and the ANAO have raised concerns that contracts have not allowed them to scrutinise the contract or performance. Public moneys should be spent transparently and be open to public and parliamentary scrutiny.

"The CPSU is also being told that the market testing of these types of functions is unpopular with many senior managers but that they are being driven by DOFA," Reynolds says.

" For example, the CPSU is aware that Centrelink have many organisational issues impacting on them at present and are approaching DOFA in an attempt to delay the market testing of their Corporate Services functions. This also leads to other issues with losing control of how money is spent, and of the work that is performed.

"The work of Public Sector Agencies should be done by Public Sector Agencies."

For further information

Contact:	Peter Lewis
Union:	Labor Council of NSW
WWW:	http://workers.labor.net.au/

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