Job Network overhaul may cost jobs: ASU

Federal Labor says previous coalition government "laziness" has left it with no
choice but to undertake a full tender of Australia's employment services.
The organisations that will be responsible for delivering the federal government's
new Job Network, to help the unemployed find work, are expected to be announced this
week.
A spokeswoman for Employment Participation Minister Brendan O'Connor said current
contracts, drawn up under the previous government, could not be extended any
further.
"Due to the previous Liberal government's laziness in rolling over the current Job
Network contracts, all avenues to extend current contracts have been exhausted," the
spokeswoman said.
"This has left the government with no choice but to undertake a full tender of
employment services.
"However, over the past year we have consistently heard and received many
submissions ... that fundamental reform to employment services were needed.
"By its very nature, the tender process is established to ensure taxpayers get value
for their money and winning providers meet the needs of job seekers and employers,"
Mr O'Connor's spokeswoman said.
But the Australia Services Union (ASU), which represents Job Network workers, said
the sector's overhaul may cost jobs and jeopardise affected agencies' broader
welfare services.
"The ASU is calling for a delay on the awarding of new contracts until there is a
full audit of the impact of the government's decisions," ASU NSW secretary Sally
McManus said in a statement on Monday.
The union also wants a guarantee that any Job Network workers displaced be given
preference of employment with any new provider.
"It would be bizarre if the federal government actually created unemployment through
its review of employment support services," Ms McManus said.