SubmissiontotheVictorianInquiryintoLabourHireIndustryInsecureWork

This submissionisfromthe CommunicationWorkersUnionPostalTelecommunicationsBranch.

1.OurunionhascoverageofallemployeesandindependentcontractorsworkinginthepostalindustryinVictoria.WealsohaveamuchsmallernumberofmemberswhoworkinTelecommunications,mainlyintheTelstraCustomerFieldWorkforce.

2.Wesupportthesubmissionmadebyoursisterunion-

theTelecommunicationsServicesBranchinrelationtoinsecureworkinthe Telecommunications Industry.

PostalTelecommunicationsBranch ofVictoria

Divisionof theCEPU

POBox1052

NorthMelbourneVictoria 3051

Ph: (03)96009100

Fax:(03)96009133

Web Site:

Email:

3.Thissubmissionisinrelationtohead-contractorsandtheiremployeesorsub-contractorswhoperformworkforAustraliaPosteitherdeliveringlettersorparcelsorboth.Whiletherearealsocasualstaff,agencystaffandfixed-termemployeesworkingforAustraliaPosttheir termsofemploymentarereasonablywell-regulatedandtheirremunerationisfixedbytheAustraliaPostEnterpriseAgreementnegotiatedbytheunion.(SeeenclosedAttachment1-clauses7fromtheAustraliaPostEnterpriseAgreement2013.)Whiletheunionalwaysattemptstogainpermanentworkandtoimproveconditionsforthesetemporaryworkers,theproblemsinthe'contractedout'areasarefarworse.

Background

4.There arevarioustypesofjobscontracted-outinAustraliaPost.UnderthecurrentCEO,moreandmorejobsathigherlevelsarebeingcontracted-out.Managershavebeenoncontractsformanyyears,butnowAdministrativeOfficersatalevel6arebeingturnedintocontractmanagerswiththemaindifferencebeingtheylosetheprotectionoftheEnterpriseAgreementandguaranteedjobsecurity,pay-risesandbettersuperannuationalthough receivebetterimmediatepayandhigherincentivebonuses.Theunion anditsmembers opposethesechangesbutourmainconcernhasbeenwiththepoorly-paidlesserskilledworkers.

5.Ontheurbanfringesandincountryareas,AustraliaPosthascontracted outseveralhundredpostaldeliveryofficers'jobs.ThecountryjobsusedtobeRoad-SideDeliveryjobsservicingsparselypopulatedareasandthesehavebeencontractedoutfor manyyears, andhavemostlybeensubjecttopublictender. Over timehoweverAustraliaPosthaveattemptedtocontractoutbuiltuproundsorStreetMailDeliveryroundsthatareofasimilarnaturetoexisting'postie'jobs.Thishassimplybeena cost-cuttingexercise,andthepayand conditionsandsafety areveryinferior.(Seecase-studiesinAttachment2).

6.Theothermaincontracted-outareaisintheparceldeliveryarea.

AustraliaPostcontractedoutthedeliveryofparcelsin1999inVictoria. Thisworkhad
previouslybeenperformedby corporatestaffonwagessetbyenterprisebargaining.

Therearenowapproximately1300headcontractorsinVictoriaalone.Theseheadcontractorsoftenemployseveralother'sub-contractors'oremployees.

{SeeAttachment3-outliningthenumberofinsecureworkersinAustraliaPost.)

Issues

7.Remuneration,workingconditionsandthesafetyoftheparceldriversislargelyunregulated.

AustraliaPostisa206 year-oldcorporationwithadominantmarket-shareinparceldelivery particularlyintheoutersuburban,regionalandruralareasofAustralia. The'head'or'principal'contractorshaveminimalbargainingpowerwithAustraliaPost,andtheactualdriversemployedbythesecontractorshavenoneatall.ThetermsofthecontractAustraliaPostuses fortheprincipalcontractorprovidefewrightsand thedisputeresolutionclauseistotallyinadequate.Thecontractrequirestheprincipalcontractortocomplywithall'legislationandregulations'butuntilveryrecently, therehasbeenvirtuallynoattentiontoauditingwhatisactuallyhappeningin practice.(Seeattachment4-thestandardAustraliaPostparcelcontract)

8.Therearenoconsultationorappealprocesses withinAustraliaPostforthehead-contractorsor theirdrivers.

9.ThereisdefinitelyasupplychainproblemwithAustraliaPostpayinginadequateratesinmany cases, andinothercasesthehead-contractorissqueezingvulnerableworkerslikeshort-termoverseasvisaholdersorrecentmigrantstotakelowratesofpay.

10.Conditionshavedeveloped'willy-nilly'.Originally,therewasapredominanceofowner­driverswithonepersonoperations,andafewhead-contractorswhoemployedoneortwoothers, oftenfamilymembers.Therehasbeenaconcentrationofcontractsovertimewithanincreaseinthesizeofindividualoperationsandagrowthinthenumberofcompaniesemployingdozensofdriverswiththelargestbeingbetween60-100drivers. Originallymost driversworkedon verbalcontractsbutinrecenttimestherehasbeenaproliferationofunfairwrittencontractspurportingtobe'sub-contracting'arrangements. (Attachment5-acoupleofexamplesofthesesub-contracts.)

11.Itisnotuncommonfor'headcontractors'to'gobroke'andforAustraliaPosttothenassign

theircontracttoanotherpersononthesamerate.

12.Thereiswidespreadconfusion aboutwhichdriversaremoreproperlydescribedas'employees'andwhichare'sub-contractors'.

13.Thishasallowedmanypooremploymentpracticestothrive.Asystemofpiecerateshasdevelopedwherebydriversarepaida'perparcel'rate.ThisisverywidespreadthroughVictoria. Itisrarefordriverstoworkon hourlywages.Thispiece rateoftendoesnotequatetotheminimumwageundertheRoadTransportDistributionAwardortheproposed ContractorDriverMinimumPaymentsRoadSafetyRemunerationOrder2016beingcontemplatedundertheRoadSafetyRemunerationTribunal.

14.Thispieceratesystemhasledto'primary-sorting'(i.e.thesorting ofparcels intoindividualroundsorruns)beingperformedforfree. Thisoftentakestwotothreehoursperday.Thedriversthensequencetheparcelsintotheirroundsandscantheir parcelsbefore delivery.Thisagainisconsumedintotheperparcelrate.AsAustraliaPosthasconsolidatedtheparceldriversintolargercentresthedrivingtimebacktothelocaldeliveryareaisagaininmostcasescoveredbytheparcelrate.

15.Basedontheunion'sinterviewswithmemberdriversandothersthemost common'perparcelrate'isaround$1.10perparcelifthe'headcontractor'providesthedeliveryvanand$1.25perparcelifthedriverhashisownvan. Somedriverssimplyprovidingtheirlabourhavebeenforcedto acceptaslow as80centsor95centsperparcel. Manyofthe driversusingvansownedbytheir'employers'areforcedtopayforfuel,tyres,services,repairsandexcessiftheyareinaccidents.Itisalsoclearthatthe15centsextraperparcelpaidtodriverswhoprovidetheirownvehicledoesnotfairlycompensateforthecostofprovidingaone-tonnevan.

16.Itiseasily seenthatthisrate (eveninhighormediumdensityresidentialor businessareas)cannotprovidealiveablewage.Thereneedstobedetailedconsiderationofwhatarefair parcelsortanddeliveryratesinavarietyofresidentialdensities. (SeeAttachment6-anoutlineofpayconditionsof'subbies'workingforonehead-contractorinanoutersuburb.

17.ItisourexperiencethatonlyaminorityofworkersinthissectorareinreceiptofSuperannuationpaymentsandmanyarenotcoveredbyworkers'compensation.Therearenoattendancebooks,verylittleawarenessofindustrialrelationmatters,andoccupationalhealthandsafetyandthereissignificanttaxavoidanceIevasion.

18.Manydriversworklonghourstomakeenoughtoliveon.Driverscanstartworkat4amandthencontinuetoworkuntil5pmorlonger.Thepracticeofhavingtoclearalltheparcelsthatarrivefordeliveryonthedayregardlessofhowmanythereare,leadstotheworkingof'forcedover-time'withoutthecompensationofover-timeratesofpay.Therearemanypressurestoworkfasterandnotsafely,astherearesettimesfortakingundeliverable parcelsbacktopostofficesbeforetheyclose,forcollectionforcustomerswhowerenot athometoreceivethem.

19.WorkHealthSafetyonthejobis rudimentaryeventhoughAustraliaPostrequireWHSplansfromtheheadcontractor. Inpractice,mostsequencingofparcelsisdoneliterally'ontheground'despitetheobviousmanualhandlingrisks.Insidethesortingfacilities,forklifts,vansandpedestriansintermixandtrafficmanagementplansoftenleavealottobedesired.Thesizeofparcelshaveincreasedsignificantlywhilethepriceshaveremainedstaticorhavebeenreduced.TherearenoSafeOperatingProceduresorRiskAssessmentsforhowparcelsover16kgs(e.g.wineandboxesofpaperorbooks)aretobesortedanddeliveredbycontractors,eventhoughthisiswellregulatedforcorporatestaff.

20.Mostdrivershavenoaccesstopaidorunpaidperiodsofleaveandmany havetoldtheuniontheyhavebeenforcedtocometoworkeventhoughtheyareill.AlthoughAustraliaPostexpectheadcontractorstohave'contingencyplans'itisdifficultandexpensivetohavereliefdriverssotheyarefewandfarbetween. Theunionhasintervenedinanumberofcaseswheredrivershave beenterminatedbecausetheyhavehadtotakesickleave.Theunionhasbeeninformedofadriverwhowasinitiallyrefusedadayofftogetmarried. Theunionorganisersregularlymeetdrivers whohavenothadaholidayforseveralyears.

21.Ithasbeenveryhardtocontactandorganisetheseworkers(theydon'thavetea-breaksandlunch-breaksinlunch-rooms),andAustraliaPosthavemanagedtokeeptheirpayandconditionshiddenbyrelyingonthethreewayrelationshipwherebytheyclaimthesearethe responsibilityoftheheadcontractors.

22.Thissystemhasnowbeenheldup toscrutinybecausetheunionreferredone ofthelarger contractors- OzTradeServices-totheAustralianFederalPolicewhohavenowchargedthemwithnumerousoffences.AspartofAustraliaPost'sdamagecontrol,KenlayAllen'slawyerswereappointedtoinvestigateAustraliaPost'sinvolvementwiththiscontractorandareduetoreportsoon.Theunionpointedoutthatthiscompanywasnottheonlyonesusingoverseasstudentlabouroutsideofvisarequirementsandunderpayingworkers.

23.Threeverylargeheadcontractorshavebeengiven90days'notice, mainlyitseemsbecauseoflack ofsub-contractarrangementswiththeirworkers.

24.AustraliaPostinsiststhattheseworkersaretheresponsibilityofthe'headcontractors'buttheunionseesitassham-contracting. ThecontroloverthejobliessolelywithAustraliaPost.Ifaparceldrivercommitsamisdemeanoure.g.awrongdeliveryordoesnotobtain asignatureondeliveryorhasparcelsstolenfromhisvan,AustraliaPostwillissuethe'headcontractor'withawithdrawalofthatdriver'sauthoritytodeliver.Thereisnoappealsystem,unlikethatavailabletocorporatestaffwhohaveaformalEmployeeCounsellingandDisciplinePolicyandaccesstoaninternalBoardofReferencebeforebeingabletoaccesstheFairWorkCommission.

25.AustraliaPostwillregularlydictatechanges totheworkpractices.Forexample,AustraliaPostdecidedtointroduceaconsignmentprice formultipleparcelsbeingdeliveredtothesamelocation.Theywillpay,forinstance$1.60-$1.90forthefirstparcelandthenonly30-50cents foreachoftherest oftheparcelsinaconsignment. Thisisregardlessofsizeoftheparcelorthedifficultyofdeliveryorwhetherthisnecessitatesanextratriptothedepot.AustraliaPosthasdecidedthattheywanttodeliveronthefourweekendsbeforeChristmasthisyeartobeabletodealwithpeakworkloadssotheparceldriversaretoldtheyhavetowork6daysaweekwithoutanincreaseintheparcelrate.Someyearsthishasbeenfor7weekendsbeforeChristmas. Ifcontractorscomplaintheyareremindedaboutthe90daysclause-thattheycanbeterminatedforanyreasonwith90days'notice.

Remedy

26.Theunionhastriedall sortsofapproachestoimprovethepayandconditionsofindividualmembersaswellastryingtogetAustraliaPosttothenegotiatingtable.

WehaveusedconciliationintheFairWork Commission.Wehavechasedunder-paymentsfor'subbies'IemployeesintheMagistratesCourt,andtheFederalCourt.WehavealsoavailedofmediationwiththeSmallBusinessCommissionerundertheOwner-DriversAct.

Wearenowinvestigatingrunning a disputeundertheRoadSafetyRemunerationTribunal, andwebelieveitwouldbeofgreatadvantageiftheproposedContractorDriverMinimumPaymentsRoadSafety RemunerationOrder2016wasfinalisedandappliedtothispartoftheroadtransportindustry.Thiswouldseemtodealwiththesupplychainproblems.Theissueofwhetherworkersare'employees'orcontractorswouldnothavetobeathresholdissuebeforedecidingjurisdictionandentitlements.

Thisgroupof workersdonot havethetimeormoneytolastoutlengthylegal contests.

Thisisobviously aminimum position.

Wewouldsupportlegislationtoextendbasicemploymentrightstotheseclassesofworkers.