Category: Democracy & Accountability

Research branch

  • The REAL Diary of an Uber Driver

    The REAL Diary of an Uber Driver

    by Jim Stanford

    ABC recently announced plans for a new 6-part television drama called “Diary of an Uber Driver.”  The Centre for Future Work’s Director Jim Stanford wonders if this drama will truly constitute insightful drama – or whether it will serve to whitewash the labour practices of a controversial, exploitive industry.

    A version of this commentary originally appeared on the 10 Daily website.

    The REAL Diary of an Uber Driver

    by Jim Stanford

    ABC recently announced plans for a new 6-part television drama called “Diary of an Uber Driver.”  It’s hard to imagine that an Uber driver’s actual life would make for riveting TV viewing.  Here’s an illustrative account I have constructed, based on observations and real conversations with ride-share drivers:

    5:25 am. Shower and quick breakfast. Uber says I can “work when I want.” So why am I up at 5? Because that’s when there’s customers.

    6:10 am. Got one ride to the City, now deadheading back to suburb where the app says they need cars. 20 minutes of my time, plus petrol, down the tube.

    7:38 am. Been waiting 7 minutes for fare to come out of her house; I can charge her extra – but she’ll likely give me 2 stars out of 5 on the customer rating.

    8:12 am. Asshole office guy demands to get out at a traffic island. Totally illegal. If I refuse, I’ll lose stars.

    8:35 am. Driving obnoxious kid and dad to school. Kid waving a stuffed animal out the window, dangerous and illegal. If I tell the dad to stop it, I’ll lose more stars.

    9:20 am. Buy petrol.  Price up another 3 cents.  Apparently I operate an “independent” business, but I can’t raise my price when costs rise. In fact, I never even touch the money – it all goes through the app.

    9:28 am. Next door at Aldi’s buying bottled water, candies, and gum. $16. Customers expect the perks – and I gotta buy them, or lose my stars.

    10:35 am. Been waiting 15 minutes without a fare. Waits that long cut my effective hourly wage by a third. Think I’ll go home and go back to sleep.

    3:20 pm. Back on the app. Deadhead back to the City for rush hour.

    5:17 pm.  Waiting 3 minutes in no-stopping zone for guy who said he’d be right there.  Risking big ticket.  Could move, would lose stars.

    6:20 pm. Cop eyes me at traffic light as I accept next fare on the app. I know it’s illegal, but it’s the only way to work it.  If he fines me ($484 and 4 demerits), that’s 3 days’ net pay. I’m lucky.

    7:18 pm. Arrogant stockbroker gives me 2 stars, even though nothing went wrong. Why? Maybe it was my skin colour, not my service.

    8:25 pm. Drunken kids demand I go through McDonald’s. If I refuse, 2 stars for sure. Car now smells like French fries. And they spilled Coke on my carpet; another cleaning. They give me 2 stars anyway. I could give them 2 stars (as their rating), but it doesn’t matter. The customer is always right, and they’ll always get a driver. I might not find another job.

    9:38 pm. Another 15 minute wait for next fare. I suspect I’m being punished by the algorithm: it sends more jobs to preferred drivers.

    10:33 pm. More drunks, demanding to play Spotify through my sound system. Cranking it to the max. Stars at risk if I complain.

    1:18 am. Slow night, too many drivers out there. Getting very tired. Uber limits me to 18 hours work in any 24 (gosh); gotta sign off soon. I could always switch to Lyft and drive a few more hours. App sends rah-rah message that I could get to $250 for the day with a couple more fares.

    1:52 am. Deadhead home. App tells me I made $276, 15 hours on-line. That’s before petrol ($60 today), vehicle costs, data costs, and the damn gum. I’ll be lucky to keep half that. Didn’t make the minimum wage today… what else is new?

    This doesn’t make for feel-good viewing, by any definition. So what is ABC thinking?

    The mini-series is a spin-off from a blog and subsequent book by Ben Phillips, who began driving for Uber in Sydney after his own small business went belly-up. His writing describes many strange encounters with weird customers and other characters. The series will also draw in his own personal angst – including fears about becoming a father.

    In short, it’s like Taxi Driver for the gig-economy: a chronicle of mini-dramas compiled by a neurotic driver, ferrying colourful passengers around the big, lonely city. There will surely be entertainment value in some scenarios. But it’s hardly an accurate portrayal of the mind-numbing, exploitive reality of ride-share driving. And the whole concept raises questions that the broadcaster and its viewers should ponder carefully.

    For starters, why is the ABC naming a TV series after a corporation? Uber is the best-known ride-share company, sure, but there are many competitors. Moreover, conventional taxis are still a mainstay of urban transportation – and taxi drivers surely have as many interesting stories as Phillips. Taxis, however, are old-fashioned, while Uber is “cool.” ABC is riding the coattails of Uber’s brand by naming the whole show after it. Unfortunately, this also provides profile and endorsement to a troubled and controversial American corporation – one gearing up for a potential $120 billion (U.S.) stock offering.

    Let’s set that ethical issue aside.  An even bigger concern is that the series will whitewash, even glamorise, a highly exploitative employment practice whose legitimacy and even legality is under siege in courtrooms and parliaments around the world. Uber has recently lost precedent-setting legal cases in France, Italy, the U.K., the U.S., and Canada. More challenges are underway, including in Australia.

    Uber has been avoiding the risks, costs, and responsibilities that come with directly employing drivers – inconveniences like minimum wages, workers’ compensation, paid holidays, and more. Drivers pay all vehicle costs (including depreciation, maintenance, tires, petrol, phone and insurance). Uber controls all payments (through the app), deducting booking fees and a fat 27.5% commission; the driver is stuck with all other costs (including GST), hoping there’s enough left at the end to buy groceries. They can be fired for inadequate consumer ratings (logged through the app’s 5-star system). Uber claims its drivers are “entrepreneurs,” not employees – but that fiction is crumbling in the face of myriad legal challenges.

    In practice, many Uber drivers make well under the minimum wage: my 2018 research indicated average pay (after vehicle expenses) of $14.62 per hour across 6 Australian cities; other surveys suggest even less. Other issues faced by drivers include dismissal without severance or recourse; traffic fines (including for operating the Uber app while driving); unlimited competition (there’s no cap on how many drivers can sign on); and deadening, dangerous hours. Little wonder 90% or more of Uber drivers quit within a year.

    It’s hard to believe this series will portray the ugly side of ride-share driving. Instead, working for Uber will come off as a humble but meaningful vocation: one where human interaction (rather than earning the minimum wage) is the main remuneration. At a moment when the exploitive practices of Uber and other gig employers are finally receiving critical attention around the world, this smells like corporate propaganda, not high-quality drama.


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    Centre For Future Work to evolve into standalone entity

    The Centre for Future Work was established by the Australia Institute in 2016 to conduct and publish progressive economic research on work, employment, and labour markets. Supported by the Australian Union movement, the centre produced cutting edge research and led the national conversation on economic issues facing working people: including the future of jobs, wages

  • Australia’s Upside-Down Labour Market

    Originally published in Western Teacher on January 16, 2019

    Workers produce more, but get paid less. Business invests less in real capital, but their profits grow. Technology advances at breakneck pace, but so many jobs are degraded and menial (not to mention horribly paid). What gives? Australia’s labour market truly seems “upside down.”

    In this article reprinted from Western Teacher magazine (published by the State School Teachers’ Union of WA), our Director Jim Stanford tries to explain these contradictory trends.

    The article is based on a presentation to a recent SSTUWA delegates meeting in Perth.

    Cover

    Stanford provides a dual diagnosis for Australia’s labour market problems: an inadequate quantity of work, and the deteriorating quality of work.  Egged on by government policies which have deliberately suppressed wages in so many workplaces, wage growth has fallen to postwar lows.  This is now undermining Australia’s continued economic progress.

    In addition to diagnosing what’s gone wrong in Australia’s labour market, Stanford also explains the numerous economic benefits of stronger collective bargaining systems so that workers can receive a fairer share of the economic pie: stronger consumer spending, more stable financial conditions, stronger government revenues, and less inequality.

    To see the full issue of Western Teacher, or sign up for future editions, please visit the magazine’s website. We are grateful to Western Teacher for permission to reprint the article here!


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    Centre For Future Work to evolve into standalone entity

    The Centre for Future Work was established by the Australia Institute in 2016 to conduct and publish progressive economic research on work, employment, and labour markets. Supported by the Australian Union movement, the centre produced cutting edge research and led the national conversation on economic issues facing working people: including the future of jobs, wages

  • Rebuilding Vocational Training in Australia

    Rebuilding Vocational Training in Australia

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    Australia’s manufacturing sector has been experiencing an important and welcome rebound during the last two years. The turnaround has been documented and analysed in previous Centre for Future Work research (including studies published in 2017 and 2018 as part of the National Manufacturing Summit, co-sponsored by the Centre).

    Ironically, the manufacturing recovery could be short-circuited by looming shortages of appropriately skilled workers.  This seems unbelievable — given so much downsizing in manufacturing employment that occurred between 2001 and 2015.  But a combination of structural change within the sector, the ageing of the current workforce, and the failure of Australia’s vocational education system (crippled by a bizarre experiment in publicly-subsidized private delivery) means that recovering manufacturers may be unable to find the skilled workers they need.

    A recent feature article in Australian Welding magazine highlighted the Centre for Future Work’s research into the problems of the current VET system, the implications for manufacturing, and 12 key reforms urgently needed to repair the situation.

    The feature article is extracted from a detailed paper (co-authored by Tanya Carney and Jim Stanford) on the evolving skills requirements of the manufacturing sector, and the failure of a privatised, fragmented VET system to meet those needs.  That paper was unveiled at the 2018 National Manufacturing Summit in Canberra.

    “Stable, well-funded, high-quality public institutions must be the anchors of any successful VET system. Public institutions are the only ones with the resources, the connections, and the stability to provide manufacturers with a steady supply of world-class skilled workers.”

    Please see the full 4-page article in Australian Welding magazine with our proposals for rebuilding a high-quality, modern VET system to meet the needs of manufacturing and other Australian industries.

    We are grateful to Australian Welding and Weld Australia for permission to reprint this article!


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    Centre For Future Work to evolve into standalone entity

    The Centre for Future Work was established by the Australia Institute in 2016 to conduct and publish progressive economic research on work, employment, and labour markets. Supported by the Australian Union movement, the centre produced cutting edge research and led the national conversation on economic issues facing working people: including the future of jobs, wages

  • New Video: Australia Needs a Pay Rise!

    New Video: Australia Needs a Pay Rise!

    by Jim Stanford

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    Jim Stanford, Director of the Centre for Future Work, was recently featured in a new video produced in collaboration with United Voice and the Flip production company.

    ANAPR Logo

    The video highlights the problems of wage stagnation in Australia’s economy, and the need to “Change the Rules” – including proposals for sector-wide collective bargaining practices, especially important in low-wage sectors such as early child education. The video has great graphics and production values, and is accompanied by a useful infographic. Download short and long versions of the film, and the infographic, through the links below:

    Shorter version (2:45)

    Longer version (4:03)

    Infographic

    ANAPR Logo

    Many thanks to the team at United Voice and Flip for their talented work on this project!


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    Dutton’s nuclear push will cost renewable jobs

    by Charlie Joyce

    Dutton’s nuclear push will cost renewable jobs As Australia’s federal election campaign has finally begun, opposition leader Peter Dutton’s proposal to spend hundreds of billions in public money to build seven nuclear power plants across the country has been carefully scrutinized. The technological unfeasibility, staggering cost, and scant detail of the Coalition’s nuclear proposal have

  • The Year Past, and the Year to Come

    The Year Past, and the Year to Come

    by Jim Stanford in Workforce Magazine
    Originally published in Workforce Magazine on December 14, 2018

    Workforce (a labour relations bulletin published by Thomson-Reuters) recently surveyed major IR figures in Australia on what they saw as the big issues in 2018, and what they expect as the major talking points for 2019. Jim Stanford, economist and Centre for Future Work director, was one of those surveyed, and here are his remarks. 

    What was the most important issue or event in industrial relations this year?

    I would choose the union movement’s “Change the Rules” campaign, which really gathered focus and momentum as the year went on. Of course, unions have been dissatisfied with the state of labour laws, and the erosion of labour rights, for years. But this year, together with other community advocates, they have built a very effective and focused advocacy campaign that I think will have a major impact on labour policy in Australia. Examples of its potential include the big rallies held in Melbourne and other cities in October; the important role that the union movement’s independent door-knocking and phone-banking campaign played in the expanded majority won by the Daniel Andrews govt in Victoria; and the generally high profile of news and debates around the issues of wages and workplace fairness in the media and public commentary.

    The current atmosphere is very reminiscent of the “Your Rights at Work” initiative that the ACTU and its affiliates organised in 2006-07 – and that ended up making a significant difference in the 2007 election (when John Howard lost his seat).

    There is a qualitative difference in this incarnation of the union movement’s organising, however: while union activists obviously are hoping to influence the results of the next election, they are self-consciously and explicitly planning on a longer-run effort to shift public opinion regarding core issues of work and fairness.

    Their agenda of proposed reforms would take several years to implement: including lifting the minimum wage to a “living wage” level, modernising labour laws (so Uber drivers and other gig workers would be protected), changing the structure of enterprise bargaining to allow multi-firm and industry-wide bargaining, and more.

    And they are advancing that agenda as an independent campaign, not as an arm of the Labor party. That positions them well to continue to advance the debate after the election … whoever wins.

    By carefully focusing its energies, building a strong “boots on the ground” infrastructure in communities (including crucial marginal electorates), and building strong public support for the core values underpinning the campaign (tapping into continuing Australian faith in fairness), I think this movement will reshape both public opinion about work and wages, as well as Australia’s labour policy framework.

    What are you most/least looking forward to in 2019?

    There will be a Commonwealth election sometime during the first half of 2019 (perhaps sooner rather than later, if the current disarray in Canberra is any indication).

    I look forward to seeing labour issues – and in particular, the stagnation of wages in Australia, and the growing gap between Australia’s egalitarian tradition and the grim economic reality that most workers presently face – feature as one of the top three issues in the campaign. Most workers have had no increase in real wages over the past five years; millions have fallen behind (especially given escalating prices for housing and other essentials). The present govt knows that this festering economic  frustration issue could be very damaging.

    There’s an opportunity in Australia right now to move the needle: imagine a modernised approach to labour policy: including labour standards that adapt to ongoing change in the economy (like gig jobs), a more ambitious crack-down on wage theft and other  illegal practices, and a revitalisation of Australia’s commitment to a ‘fair go.’

    However, I am not looking forward to the rolling out of some pretty tired warnings and threats about how modernising labour laws and addressing inequality will somehow threaten Australia’s economic viability.

    We can expect many dire threats about how the proposals for reform will drag Australia back to the “bad old 1970s” – a time, interestingly, when GDP growth, job-creation, productivity growth, and real wage growth were all significantly superior to the current era.

    This rhetoric ignores the growing consensus among economists that more equality actually strengthens economic performance – by supporting consumer spending and aggregate demand, avoiding the economic, fiscal and social costs of exclusion and inequality, and boosting govt revenues.

    The doomsday prophecies we can expect to hear from the usual suspects should be understood as the last gasps of a vision of trickle-down economic policy that has lost its credibility, in Australia and around the world.


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    Dutton’s nuclear push will cost renewable jobs

    by Charlie Joyce

    Dutton’s nuclear push will cost renewable jobs As Australia’s federal election campaign has finally begun, opposition leader Peter Dutton’s proposal to spend hundreds of billions in public money to build seven nuclear power plants across the country has been carefully scrutinized. The technological unfeasibility, staggering cost, and scant detail of the Coalition’s nuclear proposal have

  • Industry-Wide Bargaining Good for Efficiency, as Well as Equity

    Industry-Wide Bargaining Good for Efficiency, as Well as Equity

    by Anis Chowdhury

    In this commentary, Centre for Future Work Associate Dr. Anis Chowdhury discusses the economic benefits of industry-wide collective bargaining. In addition to supporting wage growth, industry-wide wage agreements generate significant efficiency benefits, by pressuring lagging firms to improve their innovation and productivity performance. The experience of other countries (such as Germany and Singapore) suggests that this system promotes greater efficiency, as well as equity — although other wealth-sharing policies are also needed.

    Dr. Chowdhury’s full comment is posted below.

    INDUSTRY-WIDE BARGAINING CAN BOOST EFFICIENCY AS WELL AS WAGES

    by Dr. Anis Chowdhury

    In an effort to reverse long-term wage stagnation, the ACTU is calling for an end to current industrial rules which effectively prohibit sector- or industry-wide wage bargaining. Predictably, the business community is opposed. Australian Industry Group chief executive, Innes Willox, said, “The ACTU’s latest proposals would destroy jobs and the competitiveness of Australian businesses…If the ACTU got its way, unions would be able to make unreasonable claims and cripple whole industries and supply chains until employers capitulated.”

    No doubt, the issue will be a hot topic in the upcoming Federal Elections. The Labor Party conference is debating the ACTU’s call. And the Liberal-National Coalition will surely accuse Labor of capitulating to the vested interest of the union movement.

    Mr. Willox’s claim that the sector-wide wage bargaining would destroy jobs and Australia’s competitiveness has no basis. A powerful example is provided by Germany, Europe’s strongest economy. In Germany, wages, hours, and other aspects of working conditions are decided by unions, work councils (organisations complementing unions by representing workers at the firm level in negotiations), and employers’ associations. Collective wage bargaining takes place not at the company or enterprise level but at the industry and regional levels, between unions and employers’ associations. If a company recognises the trade union, all of its workers are effectively covered by the union contract.

    Yet, Germany’s competitiveness did not decline. On the contrary, Germany experiences both strong productivity growth and strong wage growth. Despite ongoing real wage improvements, unit labour costs are stable or even declining – further enhancing Germany’s competitiveness.

    How is this possible? The answer was given by more than half a century ago by two leading Australian academics – WEG Salter and Eric Russel. By de-linking productivity-based wage increases at the enterprise level and adhering to the industry-wide average productivity-based wage increases, an industry bargaining system raises relative unit labour costs of firms with below-industry-average productivity, thereby forcing them to improve their productivity or else exit the industry. At the same time, firms with above-industry-average productivity enjoy lower unit labour costs, hence higher profit rates for reinvestment. Singapore also used this approach to restructure its industry in the 1980s towards higher value-added activities, with great success.

    Trying to compete on the basis of low wages is a recipe for failure. As a matter of fact, low-wage countries typically demonstrate lower productivity; and research by a leading French economist, Edmond Malinvaud, showed that a reduction in the wage rates has a depressing effect on capital intensity. Salter’s research implies that the availability of a growing pool of low paid workers makes firms complacent with regard to innovation and technological or skill upgrading. Other researchers show that under-paid labour provides a way for inefficient producers and obsolete technologies to survive. Firms become caught in a low-level productivity trap from which they have little incentive to escape – a form of Gresham’s Law’ whereby bad labour standards drive out good. The discipline imposed on all firms as a result of negotiated industry-wide wage increases forces all of them to innovate and become more efficient.

    So, sector-wide wage bargaining is good for the economy: favouring efficient firms, stimulating investment, and lifting wages. Of course, industry-wide bargaining alone cannot solve all the problems of wage inequity or wage stagnation. It must be part of a broader suite of policy measures, to provide all-round support for greater equality and inclusive prosperity.

    In particular, we must address the system that produces sky-rocketing executive pays at the expense of workers. A lower marginal tax rate is one of the incentives for the executives to pay themselves heftily, while tax cuts are not found to boost growth or employment. Share options for CEOs, which encourage job cuts and discourage re-investment, also must be reined in. If anything that is making the Australian economy vulnerable, is growing economic disparity between self-serving executive compensation and stagnant wages for the rest of the population.

    Reforms also need to address the macroeconomic policy paradigm, where fiscal policy is focused on creating needless budget surpluses by cutting social services and public infrastructure investment. Meanwhile, monetary policy is focused on a pre-determined inflation target regardless of the economic cycle. All of this stifles economic growth prospects and increases job insecurity – both of which are detrimental for wage recovery.


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  • Are States Filling the Democratic Void?

    Originally published in New Matilda on December 2, 2018

    The recent Victorian election results showed Australian voters want governments to play a pro-active role delivering public services, infrastructure, improved labour standards, and sustainability. They showed that in a time of deep cynicism with federal politics, States (and Territories) can play an important role filling the democratic void left by dysfunction and policy paralysis at the Commonwealth level.

    This commentary from Alison Pennington, economist at the Centre for Future Work, explores what the energetic campaign in Victoria revealed about our unique system of dual governance and the potential for pro-active and progressive policy making. This commentary was originally published in New Matilda.

    The Victorian election: Are states filling the democratic void?

    A destructive and cynical politics is on the rise across the world with emergent right-wing populism a warning of what happens when people lose faith in political institutions.

    In Australia, the Coalition government has been characterised by ongoing austerity, the retrenchment of public resources and capability to the tune of billions of dollars, but complete paralysis on just about every other policy reform (most visibly including massive inconsistency on energy and climate policy). This has led to a democratic void in Australian society.

    Meanwhile, the recent victory of the Andrews Labor government on a bold social democratic platform of long-term investments in services, education and infrastructure projects (some with a 2050 completion date) gave Victorians a secure, positive vision of a more balanced, stable society – and voters endorsed that vision strongly.

    How is it that these two wildly different scenarios of political life can exist alongside each other?

    Many commentators have explained the Victorian election result as a mere by-product of the Coalition’s ongoing crisis (with subsequent warnings about the future of the federal Liberals). But this suggests Victorians were motivated by cynicism alone. In reality, Victorians rallied enthusiastically around a constructive, hopeful vision of State-level policy-making. Indeed, since federation, Australian communities and regions who have identified needs and desires unmet by the Commonwealth, have often turned to the state level of governance to get things done.

    The unique organisation of governance in Australia, featuring a Commonwealth composed of somewhat independent States and Territories, has preserved a realm of Australian democracy distinct from the national level of affairs. At a time of deep cynicism with federal politics, the Victorian election result shows that States can fill the democratic void left by dysfunction and tribal politics at the Commonwealth level, strengthening Australian democracy and saving it from the worst of cynical politics we see emerging elsewhere (such as Trumpism in the US).

    Where does the legitimacy of this State-based democracy come from? Despite losing (or handing over) many of their powers to the Commonwealth over time, States still retain power to administer the key public goods that Australians most value: like education, health care, civic services, and culture. These are the functions of government that people will energetically defend when they are undermined.

    While the Australian constitution allocates responsibility for big-ticket public programs like healthcare and education to the States, the Commonwealth retains powers to raise the bulk of the revenue needed to fund these expensive services. This means States operate in a contradictory financial bind: always dependent on the federal government to honour the financing of essential services that the States are constitutionally bound to provide. This gives enormous economic and political power to federal governments— a power play that has been repeated many times over Australia’s history.

    For example, a recent attempt by the Commonwealth to undermine the funding of public goods under the ‘spend within your means’ mantra was mounted in 2016, when Malcolm Turnbull and Scott Morrison tried to shift responsibility for raising revenue for public services to States. This was done without relinquishing any of the Commonwealth’s income and corporate taxation powers – all the while overseeing billions of dollars in cuts in healthcare and education in the federal Budget.

    But the constitutional and financial bind faced by State governments has gained particular significance in recent years, as decades of ‘small government’ policies wound back public services in favour of highly-subsidised private models have come to a head. Publicly-subsidised private markets in aged care, disability care, healthcare, education, VET and childcare have all been proven failures: both in the quality of services delivered, and in the standards of employment for those doing the work.

    Recent polling by the Australian Institute shows that 64 per cent of Australians want an increase in public spending funded by tax revenue from wealthy individuals and high-turnover businesses. Australians value government provision of public goods, even more than personal income tax cuts. The failure of federally-backed market experiments within spheres of life where Australians demand a proactive and productive government role, has left the political field wide open – and States are in prime strategic political terrain to fill that space.

    State action is applauded in the face of Commonwealth inaction. For instance, amidst recent turmoil in federal energy and climate policy, the Victorian, SA and ACT governments have proactively invested in renewable energy industries. And State governments in Victoria, SA, ACT and QLD have found innovative work-arounds to protect workers from new exploitative labour practices, despite the dominance of the Commonwealth in the jurisdiction of labour law: including labour hire licencing schemes, mandated minimum pay and safety conditions, and a new inquiry just launched into on-demand ‘gig’ work and its implications for the Victorian economy.

    The Victorian election results provide another clear insight into what Australians value and what they will tolerate. They confirm that Australians care about a fair society – underpinned by the public provision of healthcare and education (including a revamped TAFE sector), new infrastructure, action on renewable energy, and employment conditions that allow Australians to live a decent quality life.

    With the Andrews government’s pledges for sizeable investments in all of these endeavours ratified so strongly by voters, it shows that the failure of Commonwealth policy and politics can be mitigated by popular, publicly-minded campaigns at the State level.

    A future federal government could build on the example set by the Victorian election. It could use its much stronger policy and fiscal levers to charter a course that addresses the growing labour market power imbalances, restores the billions cut from hospitals, schools and housing, prepares our economy for a renewable energy future, and delivers a comprehensive program of tax reform.

    But until that decisive break with the failed austerity and cynicism of recent federal politics, the Victorian election results confirm that in the meantime, States can step firmly into the breach. They can and must continue to function as a key site for the expression of Australians’ demands for a more equal, inclusive, participatory society, with a proactive role for government in delivering public goods.


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    Centre For Future Work to evolve into standalone entity

    The Centre for Future Work was established by the Australia Institute in 2016 to conduct and publish progressive economic research on work, employment, and labour markets. Supported by the Australian Union movement, the centre produced cutting edge research and led the national conversation on economic issues facing working people: including the future of jobs, wages

  • Under the Employer’s Eye: Electronic Monitoring & Surveillance in Australian Workplaces

    Under the Employer’s Eye: Electronic Monitoring & Surveillance in Australian Workplaces

    by Troy Henderson, Tom Swann and Jim Stanford

    Each year the Centre for Future Work at the Australia Institute conducts a public survey of Australian working hours, as part of our annual “Go Home on Time Day” (GHOTD) initiative. Findings from the survey regarding hours worked, preferences for more or less hours, and the incidence of unpaid overtime are reported in a companion study.

    This year, our survey also included a special section focusing on the forms, prevalence, impacts and implications of electronic and digital monitoring and surveillance in Australian workplaces. Our goal was to investigate a secondary dimension of the time pressure facing Australian workers. It is not just that work is being extended into greater portions of our days (through unpaid overtime, the use of mobile phones and computers to reach workers at any time, pressure to not fully utilise annual leave, and similar trends). In addition, even within the work day, time pressure is intensified with the expectation that every moment of work time must be used for productive purposes – an expectation that is increasingly reinforced through omnipresent systems of monitoring, performance measurement, and surveillance. The result of these twin forces is an overall inability for people to escape from the demands of work: neither at the workplace (even for short periods), nor away from it.

    Part I of this report begins by describing the main forms of modern electronic monitoring and surveillance (EMS) that have placed more Australian workers “under their employer’s eye.” These methods include the use of location tracking technologies, monitoring of emails and social media content, the “gamification” of work, digital methods of performance monitoring, and even electronic systems for employee discipline and dismissal. Following sections examine the various purposes of modern EMS systems, and the extent of their application. This is followed by a brief description of the legal and regulatory system governing EMS in Australia; current regulations limiting employers’ use of these systems are sparse and inconsistent. The last section of Part I discusses the direct and indirect consequences of these new forms of monitoring and surveillance for workers. It argues that the impact of omnipresent surveillance in workplaces may be contributing to the slower wage growth which has so concerned Australian economists and policy experts in recent years; because it is now easier and cheaper to monitor and “motivate” employees through surveillance and potential discipline, employers feel less pressure to provide positive economic incentives (such as job security, promotion, and higher wages) to elicit loyalty and effort from their workforces.

    Part II of the report then reports the findings of our original survey data regarding the forms, extent and impacts of EMS systems in Australian workplaces, and the attitudes of Australian workers towards these technologies and trends. We surveyed 1,459 people between 26 October and 6 November 2018, using an online survey methodology, conducted by Research Now. The sample was nationally representative with respect to gender, age and state and territory.



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  • ‘Go Home On Time Day’ 2018: Australians Owed $106 Billion in Unpaid Overtime, Report Reveals

    ‘Go Home On Time Day’ 2018: Australians Owed $106 Billion in Unpaid Overtime, Report Reveals

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    The 10th annual ‘Go Home On Time Day’ report by The Australia Institute’s Centre for Future Work estimates that Australian employees will work 3.2 billion hours of unpaid overtime for their employers this year, worth an estimated $106 billion in foregone wages.

    A national survey undertaken as part of the report has shown that the average Australian worker now puts in six hours of unpaid overtime per week, which equates to working an extra two months for free every year. That’s an increase from 5.1 hours on average in last year’s survey.

    “Australians are working more unpaid overtime than ever before, and they’re paying a high price for it,” said Troy Henderson, Economist at the Centre for Future Work.

    “Time theft takes many forms, including employees staying late, coming in early, working through their lunch or other breaks, taking work home on evenings and weekends or being contacted to perform work out of hours.

    “Most Australians wouldn’t dream of working for two months without pay. But it’s spread out over the whole year, and has become part of the implicit expectations of too many jobs. ‘Time theft’ has thus become endemic across the whole labour market.

    “Today we ask that all Australians go home on time and try to limit the unpaid overtime they work. And stopping time theft is ultimately the responsibility of employers and government, too, not just individual workers: employers must value and respect the leisure time of workers, and recognise that work cannot take over our entire lives.”

    The survey indicated that even part-time and casual workers – most of whom want more paid hours of work each week – are being asked to work unpaid overtime (averaging over 4 hours per week for part-timers and almost 3 hours per week for casuals). “Given the problem of underemployment and precarious work in today’s labour market, it is especially unfair that part-time and casual workers are being pressured to work for free,” Mr. Henderson added.

    This year’s Go Home on Time Day survey also included a special questionnaire on the use of digital surveillance and monitoring in Australian workplaces. 70% of respondents said their employers use at least one form of digital surveillance or monitoring, including cameras, GPS tracking, monitoring internet or social media activity or counting keystrokes, to monitor employees – and sometimes to discipline or even dismiss them.

    “Technology can have a strong positive effect in the workplace, but our research shows it is also being used in ways that increase pressure on employees and reduce the level of trust in workplaces,” Mr. Henderson said.

    “It’s clear from our research that millions of Australians are losing out to time theft. Both underemployed workers, and those who work too much, are giving up their precious time for free. All Australian workers have the right to go home on time.”


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  • Go Home on Time Day 2018

    Go Home on Time Day 2018

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    Wednesday 21 November is Australia’s official “Go Home On Time Day,” sponsored by the Centre for Future Work and the Australia Institute. This represents the 10th year of our initiative, to provide light-hearted encouragement to Australian workers to actually leave their jobs when they are supposed to. Instead of working late once again – and allowing your employer to “steal” even more of your time, without even paying for it – why not leave the job promptly. Spend a full evening with your family or friends, visit the gym, see a movie – do anything other than work.

    Please visit our special Go Home On Time Day website for more information, tips on how to get away from work on time, and free posters and shareables. There’s also an online calculator where you can estimate the value of the time theft you experience, through unpaid overtime in all its forms.

    In conjunction with Go Home On Time Day, The Centre for Future Work is releasing two new research reports on the time pressures facing Australian workers:

    Our annual update on attitudes toward working hours, the incidence of unpaid overtime and its aggregate value: Excessive Hours and Unpaid Overtime: 2018 Update, by Troy Henderson and Tom Swann. On the basis of a survey of 880 employed Australians, we estimate that the typical worker puts in 6.0 hours of unpaid overtime per week – ranging from going in early, staying late, working through lunch and tea breaks, taking work home in the evenings and weekends, responding to calls or emails out of hours, and more. That amounts to 3.25 billion hours of unpaid overtime across the whole labour market this year, worth a total of $106 billion.

    This year, our Go Home On Time Day survey also included a special section focusing on the forms, prevalence, impacts and implications of electronic and digital monitoring and surveillance in Australian workplaces. Our goal was to investigate a secondary dimension of the time pressure facing Australian workers. It is not just that work is being extended into greater portions of our days (through unpaid overtime, the use of mobile phones and computers to reach workers at any time, pressure to not fully utilise annual leave, and similar trends). In addition, even within the work day, time pressure is intensified with the expectation that every moment of work time must be used for productive purposes – an expectation that is increasingly reinforced through omnipresent systems of monitoring, performance measurement, and surveillance. The result of these twin forces is an overall inability for people to escape from the demands of work: neither at the workplace (even for short periods), nor away from it.

    Please see our companion report, Under the Employer’s Eye: Electronic Monitoring & Surveillance in Australian Workplaces, by Troy Henderson, Tom Swann and Jim Stanford.


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