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  • International COVID-19 Income Supports: An Update

    COVID-19

    International COVID-19 Income Supports: An Update

    by Alison Pennington and Jim Stanford

    Authors

    Alison Pennington

    Senior Economist

    Jim Stanford

    The COVID-19 pandemic severely disrupted global labour markets, and exposed long-standing gaps in social protection systems. Governments around the industrialised world injected hundreds of billions of dollars into a range of unprecedented crisis measures: to support individuals who lost work, to subsidise employers to retain workers despite the fall-off in business, and to facilitate workers to stay away from work when required for health reasons. More recently, as the pandemic progressed and vaccination became widespread, governments have begun considering how to transition toward a post-COVID policy stance. 

    In several countries, governments with stronger commitments to public health and safety, and a more inclusive and equitable recovery from COVID-19, have been more cautious and incremental in scaling back government interventions. Some have also made permanent improvements to income security and other policies whose shortcomings became more apparent during the pandemic. In Australia, however, the phase-out of COVID-19 wage subsidies and income supports was accelerated and premature – perhaps more so than any other major industrial country. A new comparison of COVID support policies across numerous industrial countries confirms the economic and public health risks of the rapid elimination of Australia’s COVID programs.

    This briefing paper, prepared by Alison Pennington and Jim Stanford, catalogues a selection of international income support measures introduced in response to the COVID-19 pandemic, and reports on recent changes in those programs as vaccinations roll out and economies have re-opened. This catalogue allows us to make a comparative assessment of the level and coverage of Australia’s provisions, in relation to other jurisdictions.

    After summarising the status of Australia’s Commonwealth-administered COVID-era payments, other countries are surveyed, organised into two groups: those with income support programs still in place, and those whose programs had been eliminated at time of writing. A conclusion summarises the comparison, which confirms that Australia has been an outlier among industrial countries in the speed with which emergency COVID-19 measures were eliminated.



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  • Eight free weeks: Time stolen from employees skyrockets during COVID

    Eight free weeks: Time stolen from employees skyrockets during COVID

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    The number of hours stolen from Australians by employers has skyrocketed during the COVID-19 pandemic, with the average employee now providing eight full-time weeks of free work per year.

    17 November 2021 marks Go Home on Time Day, run by the Australia Institute’s Centre for Future Work, and now in its thirteenth year.

    Key findings from this year’s Go Home on Time Day report:

    • The average employed Australian is performing 6.13 hours of unpaid work each week in 2021, up from 5.25 in 2020, and 4.62 in 2019.
    • That time theft equates to 319 hours per year, or over eight standard 38-hour work weeks per worker.
    • This unpaid overtime represents the loss of $125 billion in income from Australian workers in the past year, or $461.60 per worker every fortnight.
    • COVID-19 appears to have accelerated Australia’s time theft crisis, with 26% of workers reporting their employers’ expectations of their availability increased during the pandemic.
    • Amidst the growth in working from home during COVID, employers are using new technologies to pressure and monitor employees. 39% of workers report their employers are remotely monitoring them through technology like webcams and keystroke counters.
    • Young workers aged 18-29 performed the most unpaid overtime (8.17 hours per week)

    “This year Australian workers are taking home a smaller share of GDP than we have ever seen before. Yet, time-theft is rife and bosses are stealing record amounts of unpaid time from workers,” said Dan Nahum, economist at the Australia Institute’s Centre for Future Work.
     
    “Arriving at work early, staying late, working through breaks, working nights and weekends, taking calls or emails out of hours – there are a host of ways employers steal time from their employees, and we see them all being used prodigiously.

    “COVID-19 has made the situation worse, indicating work-from-home does not necessarily improve work life in favour of employees. Instead we’re seeing further incursion of work into people’s personal time and their privacy. In many cases it’s making it easier for employers to undercut Australian minimum standards around hours, overtime, and penalty rates.

    “Alarmingly work-from-home arrangements have been accompanied by innovative surveillance methods, with 39 per cent of employees saying their employers remotely monitor their activity and a further 17 per cent unsure whether they were being electronically monitored or not. When one in three workers say they are being monitored via webcam and 30 per cent say their every keystroke is being recorded, it’s clear our industrial laws are not keeping pace with tech.

    “If Australians want to stop this alarming theft of billions of hours of time, and hundreds of billions of dollars of income, policymakers need to strengthen workers’ power to demand reasonable, stable hours of limit, and fair payment for every hour they work. This is all the more important with so many Australians working from their own homes.”

    Mr Nahum said it was an injustice that many Australians report being eager for more paid hours while contributing free ones to their boss.

    “Half the part-time and casual workers in this country report they are keen for more paid hours, yet the average part-timer is giving away over 4.5 hours a week and the average casual just over 5 hours,” Mr Nahum said.

    “These are worker efforts that should end up as wages in someone’s pocket, not a boost to a profit column.”


    Related research



    Working From Home, or Living at Work?



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  • The Future of Work in Journalism

    Future of Work, Industry & Sector Policies, Media

    The Future of Work in Journalism

    by Jim Stanford

    Author

    Jim Stanford

    Media release



    Active Policy Measures Needed to Stop Decline of Journalism

    Information industries have lost some 60,000 jobs in Australia in the last 15 years, almost half during the COVID-19 pandemic. And a new research report highlights the need for active policy supports to stabilise the media industry, and protect the public good function of quality journalism.

    The new report, The Future of Work in Journalism, was written by Dr. Jim Stanford with the Centre for Future Work at the Australia Institute. It catalogues the employment and economic damage wrought in media and information industries by the combination of technological change, new business models, and globalisation.

    “It is ironic that we supposedly live in an ‘information economy,’ but Australia’s capacity to contribute fully and successfully to that information era is crumbling due to financial losses and massive job destruction,” Stanford said.

    Major findings of the report include:

    • The broader information, media, and telecommunications industry lost over 30,000 jobs between 2007 (its peak employment) and 2019. Publishing was the worst-affected sub-sector, losing over half of its jobs as newspapers and other print media grappled with new technologies and major losses.
    • New jobs in digital activities (such as internet publishing) are not offsetting the loss of work in conventional media.
    • Jobs remaining in the media industry have become more insecure: with almost one-third part-time, and a growing share casual and contractor positions.
    • Real wages are falling in the media industry, despite a dramatic increase in labour productivity. Real value-added per employee in media industries has been growing at 4% per year since 2012, but real labour compensation has been falling.

    “Workers in these industries are producing more with less, despite the turmoil of technological change, job losses, and restructuring,” Stanford said. “But that extraordinary effort is not translating into more secure or better paid jobs – quite the contrary.”

    The report argues that quality journalism is a ‘public good’ in a modern democracy, because of its importance in distributing reliable information (including on emergencies, like the pandemic) to citizens. The failure of private markets to sustainably supply this service (due to corporate concentration, unrestrained ‘free riding’ on content produced by other, and globalisation) necessitates public policy action to stabilise the industry and support continued journalism.

    The report makes several suggestions for policy measures to sustain journalism despite those market failures, including publicly-funded journalism, stronger property rights for content-creators, tax reforms, stronger anti-trust regulations (on major digital monopolies like Google and Facebook), and stronger support for training and vocational education in the sector.

    The report was commissioned by the Media, Entertainment and Arts Alliance (MEAA), the union representing journalists and other media workers. Marcus Strom, the MEAA’s Media Federal President, said: “The report makes it clear that years of disruption, undermining and neglect have left Australian journalism and journalists in a fragile state.”

    Strom urged the Commonwealth government to step up its support for domestic journalism. ““Public interest journalism is a public good. It informs and entertains Australians, ensures the public’s right to know and holds the powerful to account. If we want that to continue, then there is no time to waste to address the many challenges facing those working in journalism and the entire media industry.”



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  • Active Policy Measures Needed to Stop Decline of Journalism

    Active Policy Measures Needed to Stop Decline of Journalism

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    The media and information industries have lost some 60,000 jobs in Australia over the last 15 years. With almost half of those jobs lost during the COVID-19 pandemic, new research shows active policy supports are urgently needed to stabilise and protect the ‘public good’ function of journalism.

    A new report by the Australia Institute’s Centre for Future Work, The Future of Work in Journalism, catalogues the employment and economic damage wrought in media and information industries by the combination of technological change, new business models, and globalisation. The report was commissioned by the Media Entertainment & Arts Alliance (MEAA), who are urging the Federal Government to step up its support for Australian domestic journalism.

    Key findings:

    • The broader information, media, and telecommunications industry lost over 30,000 jobs between 2007 (its peak employment) and 2019.
    • Publishing was the worst-affected sub-sector, losing over half of its jobs as newspapers and other print media grappled with new technologies and major losses. Almost 30,000 more jobs have also been lost in this sector since the start of the COVID-19 pandemic.
    • New jobs in digital activities (such as internet publishing) are not offsetting the loss of work in conventional media.
    • Jobs remaining in the media industry have become more insecure: with almost one-third of positions part-time, and a growing share of casual and contractor positions.
    • Real wages are falling in the media industry, despite a dramatic increase in labour productivity.
    • Real value-added per employee in media industries has been growing at 4% per year since 2012, but real labour compensation has been falling.

    “It is ironic that we supposedly live in an ‘information economy’ yet Australia’s capacity to contribute fully and successfully to that information era is crumbling due to financial losses and massive job destruction,” said Dr Jim Stanford, director of the Australia Institute’s Centre for Future Work.

    “Workers in industries like journalism are producing more than ever despite the turmoil of technological change, job losses and restructuring. But the extraordinary effort by workers is not translating into more secure or better paid jobs—quite the contrary.

    “Quality journalism is a public good, with the distribution of reliable information to citizens the key to a well-functioning modern democracy—particularly in times of crisis, like the pandemic. The failure of private markets to sustainably supply this service necessitates public policy action to stabilise the industry and support continued quality journalism,” Dr Stanford said.

    Marcus Strom, the Media Entertainment & Arts Alliance’s (MEAA) Media Federal President, urged the Commonwealth Government to step-up its support for domestic journalism.

    “The report makes clear that years’ of disruption, undermining and neglect have left Australian journalism and journalists in a fragile state,” said Marcus Strom, Media Federal President at the MEAA.

    “Public interest journalism is a public good. It informs and entertains Australians, ensures the public’s right to know, and holds the powerful to account. If Australians want that to continue, then there is no time to waste to address the many challenges facing journalism,” Mr Strom said.


    Related research



    The Future of Work in Journalism



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  • Insecure Workers Have Been the ‘Shock Troops’ of the COVID-19 Pandemic: New Report

    Insecure Workers Have Been the ‘Shock Troops’ of the COVID-19 Pandemic: New Report

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    New research from the Australia Institute’s Centre for Future Work confirms that workers in casual and insecure jobs have borne the lion’s share of job losses during the COVID-19 pandemic – both the first lockdowns in 2020, and the more recent Delta-wave of closures.

    Key Findings:

    • Since May, workers in casual and part-time jobs have suffered over 70% of job losses from renewed lockdowns and workplace closures.
    • Casual workers have been 8 times more likely to lose work than permanent staff. Meanwhile, part-time workers have been 4.5 times more likely to lose work than full-timers.
    • The report documents the disproportionate concentration of insecure work among women, young workers, and in the retail and hospitality sectors. Women hold over 53% of all casual jobs, but only 48% of permanent roles.
    • Average wages are much lower in insecure jobs. Casual workers, on average, earn 26% less per hour and 52% less per week than permanent workers – contrary to the common assumption that casual workers receive higher wages to offset their lack of entitlements and job protections.
    • The research estimates that if casual workers received the same hourly wages as permanent staff, overall wage incomes in Australia would grow by $30 billion per year, or 3.5%. That would mark a welcome change from the past eight consecutive years of record-low wage growth.
    • The report also shows that less than half of working Australians now hold a permanent, full-time waged job with entitlements. The traditional norm of a ‘standard’ job has been eroded on all sides by part-time jobs, casual work, temporary and contractor jobs, precarious forms of self-employment, and (more recently) on-demand gig work.

    “Workers in insecure jobs have been the shock troops of the pandemic,” said Dr Jim Stanford, director of the Australia Institute’s Centre for Future Work, and report author.

    “They suffered by far the deepest casualties during the first round of layoffs. Then they were sent back into battle, as the economy temporarily recovered. But now their livelihoods are being shot down again, in mass numbers.

    “It is bad enough that workers in these jobs do not receive basic entitlements like paid sick leave or severance protections. But even when they are working, they are paid far less than other workers.

    “The long-term and multi-faceted expansion of insecure work, in all its forms, is ripping apart economic and social stability in Australia.”

    “Recent changes in labour law, which confirm the right of employers to use casual labour in any position — even stable long-term roles — will lead to further expansion of insecure work once the pandemic is over. New pathways for workers to convert to permanent status have numerous limitations and exemptions, and will not significantly affect growing job insecurity.”


    Related research



    Shock Troops of the Pandemic



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  • Shock Troops of the Pandemic

    COVID-19, Insecure & Precarious Work

    Shock Troops of the Pandemic

    Casual and Insecure Work in COVID and Beyond
    by Jim Stanford

    Author

    Jim Stanford

    Media release



    Insecure Workers Have Been the ‘Shock Troops’ of the COVID-19 Pandemic: New Report

    New research confirms that workers in casual and insecure jobs have borne the lion’s share of job losses during the COVID-19 pandemic – both the first lockdowns in 2020, and the more recent second wave of closures.

    Since May, workers in casual and part-time jobs have suffered over 70% of job losses from renewed lockdowns and workplace closures. Casual workers have been 8 times more likely to lose work than permanent staff. And part-timers have been 4.5 times more likely to lose work than full-timers.

    “Workers in insecure jobs have been the shock troops of the pandemic,” said Jim Stanford, Economist with the Centre for Future Work and author of the report. “They suffered by far the deepest casualties during the first round of layoffs. Then they were sent back into battle, as the economy temporarily recovered. But now their livelihoods are being shot down again, in mass numbers.”



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  • Post-COVID-19 policy responses to climate change: beyond capitalism?

    Climate Change, COVID-19, Macroeconomics

    Post-COVID-19 policy responses to climate change: beyond capitalism?

    by Mark Dean and Al Rainnie

    Authors

    Mark Dean

    Laurie Carmichael Distinguished Research Fellow

    Al Rainnie

    A sustainable social, political and environmental response to the “twin crises” of the COVID-19 pandemic and climate change will require policymaking beyond capitalism. Only by achieving a post-growth response to these crises can we meaningfully shape a future of jobs in renewable-powered industries shaped by organised labour, democratic values and public institutions. Anything less will merely create more markets and more technocratic fixes that reinforce the growing social and environmental inequalities that our current political system cannot overcome.

    As Australia moves further away from anything resembling a sustainable pathway to reach these goals (i.e., $90bn submarines that we will not see for at least 20 years but no meaningful action on climate change), a new Labour and Industry article – co-authored by Laurie Carmichael Distinguished Research Fellow Mark Dean and Centre for Future Work Associate, Professor Al Rainnie analyses four alternative responses proposed by Australian unions, climate change groups and grassroots community organisations.

    The purpose of this article has been to identify the range of options that government is capable of pursuing and which, with sensible political choices, can adopt as strategy today. Absent the current federal government’s political will to make long-term choices, Australia is yet to settle on a coordinated policy response that plans and directs the sustainable development of our economy.

    Urgent action is needed to shape policymaking with a strategic, long-term vision that restores the active, interventionist role of government in building an economy capable of overcoming crisis.



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  • An Avoidable Catastrophe

    COVID-19, Education & Training

    An Avoidable Catastrophe

    Pandemic Job Losses in Higher Education and Their Consequences
    by Eliza Littleton and Jim Stanford

    Authors

    Eliza Littleton

    Senior Economist

    Jim Stanford

    Australia’s universities were uniquely impacted by the COVID-19 pandemic and recession — including the closure of borders to most international students, the implementation of new COVID-safe instruction practices, and effective exclusion from  Commonwealth support programs like JobKeeper.

    Now, 18 months after the borders were first closed, things are getting worse for universities, not better. New research from the Centre for Future Work confirms that tertiary education has been hit by bigger job losses this year than any other non-agricultural sector in the economy.

    The new report, An Avoidable Catastrophe: Pandemic Job Losses in Higher Education and their Consequences, was prepared by Eliza Littleton and Jim Stanford. It shows that total employment in tertiary education in the first half of 2021 fell by 40,000 positions compared to year-earlier levels. Most of the job losses were permanent, full-time positions — and all of them were at public institutions.

    During the first months of the pandemic, casual staff were the first university employees to lose their jobs as universities grappled with the sudden loss of international student fees and other impacts of the pandemic. This year, however, the job losses are both much larger, and targeted at permanent full-time staff. This indicates that universities are undertaking a more permanent downsizing and casualisation of their workforce, on expectation that border closures are likely to persist — and the Commonwealth government will continue to refuse targeted assistance necessary to preserve the universities’ instruction and research capacities.

    The report urges the Commonwealth government to provide special temporary assistance to universities until borders can reopen and revenues return to normal. Targeted support of $3.75 billion would allow the universities to replace and preserve the jobs cut so far this year. Preserving the functions of Australian universities is especially vital at a moment when the economy is undergoing lasting structural changes as a consequence of the pandemic, and hence more students will need higher education opportunities to support the resulting employment transitions. Moreover, the pandemic also reinforced that the need for top-quality research (including in health sciences) is more urgent than ever.



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  • Fair Pay Agreements: How Workers in NZ Are Getting Their Share

    Fair Pay Agreements: How Workers in NZ Are Getting Their Share

    by Alison Pennington

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    Across the ditch, the Ardern government in New Zealand is undertaking an ambitious and multi-dimensional effort to address low wages, inequality, and poor job quality. NZ unions have just won the introduction of Fair Pay Agreements, planned for implementation in 2022. FPAs will allow working people to bargain collectively across sectors and start to correct the income and power imbalance between workers and employers.

    The Centre for Future Work hosted a special webinar with Craig Renney, Economist & Director of Policy for the New Zealand Council of Trade Unions. In the recorded webinar, Craig explains key FPA policy details including design & coverage of the system, and how FPAs can lift wages and labour standards, stop the ‘race to the bottom’, and rebuild worker bargaining power in NZ. The webinar is the first in the Centre’s exciting new webinar series exploring key labour market topics related to work, wages, and fairness. Hosted by our Senior Economist Alison Pennington.

    Craig Renney’s presentation slides presented for the webinar are available below.

    The Centre for Future Work has published research on several ambitious progressive labour reforms pursued in New Zealand. For more, please read Workplace Policy Reform in New Zealand: What are the Lessons for Australia?, by Alison Pennington.


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    Presentation slides

    Related research



    Workplace Policy Reform in New Zealand



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    IR Bill Will Cut Wages & Accelerate Precarity

    by Alison Pennington in Jacobin

    The Morrison government has proposed sweeping changes to labour laws that will expand unilateral employer power to cut wages and freely deploy casual labour. Together, the Coalition’s proposed changes will accelerate the incidence of insecure work, undermine genuine collective bargaining, and suppress wages growth. Impacts will be felt across the entire workforce – casual and permanent workers alike.

  • Family & Domestic Violence Leave Review (AM2021/55)

    Gender at Work

    Family & Domestic Violence Leave Review (AM2021/55)

    Expert Report of Dr. James Stanford
    by Jim Stanford

    Author

    Jim Stanford

    As one of its first legislative acts, the new Commonwealth government is proposing to provide 10 days of paid leave for victims of family and domestic violence, as a right enshrined in Australia’s National Employment Standards. This will provide victims of FDV with important economic security as they work to address or escape their situations. Access to such leave has been shown to be effective in reducing the subsequent incidence of violence, and assisting victims and their families in rebuilding their lives.

    The legislation comes on the heels of an initial decision by the Fair Work Commission to enshrine 10 days paid FDV leave as a provision in Modern Awards.

    Our Director, Dr Jim Stanford, appeared as an expert witness last year before the FWC inquiry on this matter. He presented testimony estimating the ultimate impact of 10 days paid FDV leave on total labour costs in the Australian economy. He found that the final impact of this provision on total labour costs was almost too small to be measured (equivalent to an increase in labour costs of one-sixtieth of one percent — not enough to be visible in aggregate economic data). These costs are easily outweighed by the economic benefits of reducing the incidence of FDV.

    Dr Stanford’s full expert report is available below (as originally published by the FWC as part of its Family and domestic violence leave review 2021).



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