Critical Times

Howard can barely keep a straight face when he says that his government is the best friend the Australian worker ever had. He trotted out the none-too-convincing claim again recently while making the distorted and misleading assertion that real wages for Australians are growing strongly. “Under this Government, real wages have increased by 16.8 per cent — compared with only a 1.2 per cent increase under 13 years of the last Labor Government. More than 1.7 million jobs have been created since March 1996.”

He was also spruiking his “WorkChoices” industrial relations changes, saying that the changes were necessary to keep the good news stories flowing.

Every now and then, reports surface that shed light on the reality behind the Government’s hype. One such report was released recently on the conditions of low-paid workers and the likely effects of “WorkChoices”. It was funded by the Australian Research Council, the Brotherhood of St Laurence, the Liquor Hospitality and Miscellaneous Workers Union, SA Unions, Unions NSW and the Victorian Trades Hall Council. Living Low Paid: Some Experiences of Australian Childcare Workers and Cleaners is the work of Helen Masterman-Smith, Robyn May and Barbara Pocock and blows many of Howard’s carefully crafted myths apart.

The myth of wages growth

For example, Howard’s talk about average increases in real wages must be considered in the context of a rapidly widening income gap. Since the PM took office, chief executive salaries are now 63 times that of average workers. In 1989-90, that figure was 18 times. At the other end of the income scale, 28 per cent of Australian workers are casual in their main job — a situation that contributes significantly to the growing proportion of the working poor in the labour force.

For the study, the low pay mark is set at two thirds of median earnings — $14 an hour, $533 a week or $27,716 a year at today’s prices based on a standard week of 38 hours. In the mid 1990s, 14 per cent of Australians fell into this category. Today 20 per cent of Australians can be described as working poor. And, as the report points out, the arrival of the “WorkChoices” legislation on the scene will only accelerate the downward trend in living standards for many Australians. Geoffrey Giudice, President of the Australian Industrial Relations Commission is quoted:

“People with low skills, low bargaining power, are heading for (the five minimum conditions that comprise) the Fair Pay and Conditions Standard, which will have an effect on their incomes. This will be accompanied by a slowdown in the rate of growth of minimum wages — that’s what the Fair Pay Commission is for … If those things are going to occur, they’ll probably have to be accompanied by a reduction in social welfare, otherwise the incentive to work will reduce.”

Other myths used by Howard & Co to justify their brave new world of casualised work, job insecurity and unpredictable hours are also exposed. The study tested the apologetics for workplace “reform” including “WorkChoices” by examining the circumstances of a group of interviewees; 18 childcare workers and 23 cleaners.

The “pin money” myth

The first myth is that low paid workers are cushioned by living in households with other earners — usually a well-paid spouse. This situation only applied in a small number of cases. None of the workers thought of their income as “pin money”. For most, their wages are crucial to the viability of the household. Some had low-paid partners who work a number of low-paid jobs to keep afloat. Others were not in relationships in which the income is shared.

The report contains extracts from the interviews. The details of these insecure lifestyles are disturbing, though increasingly familiar. Jenni explained her predicament:

“… I’d like to contribute half but there’s no possible way I can.… And I feel like he … occasionally resents me … ‘well if you don’t pay half, you can do all the cleaning and earn your keep that way.’ … And I’m like ‘I don’t think so’. And that actually has ended up us living separately. … His response is go out and get another job that earns more money. … [but] I like my job. I feel I’ve got a very rewarding job. And I feel that I won’t get that from anywhere else. But then I also think, ‘well, okay if I was to go out and get another job that pays a lot more, where do I start?’”

The “top it up with welfare” myth

The second myth is that low-paid workers can supplement their income with second jobs or welfare. This “easier said than done” solution ignores a lot of realities. Many casual jobs, cleaning jobs for instance, have such variable hours and pay that managing social security claims becomes a job in itself. The demands of the job can be so heavy as to make it physically impossible to consider more work. The shifts can be unpredictable, which prevents any commitment to a regular second job. Sally explains:

“My cleaning [job] is only relief… I could go for months without having anything, and then I can have a week where I have to do like 15 hours. …and I tell you what, it gets exhausting. I’m exhausted. … I try for it not to affect my [childcare] work because … it’s not fair on the children. I need to always give a hundred per cent. … I had a set [childcare] shift where it was 7.30 to 2.30 every day and probably about two years ago … I was made to quit my [second] job so I could do rotating shifts. … I can’t do it all the time because of my working hours … the times just don’t meet.”

The “stepping stone” myth

The last myth is that a crappy low-paid job is a stepping stone to a better paid, more fulfilling one. The assumption here is that all these low-paid workers are just starting out after leaving school. However, according to the Australian Bureau of statistics, one in four cleaners (for example) is over 55 years of age. Many are skilled workers thrown overboard by Australia’s de-industrialising economy or women returning to work after rearing children. The prejudice against workers in this situation was reported by several of the interviewees. Paula is typical:

“… because you’re happy to do a lower paid job, you know, they just keep you there … and then you get older, with me anyway, they probably think oh, you’re too old, or they give someone, a younger person, a go because they’re younger and they don’t have responsibility. I don’t know why, I think they’re against old people.”

For young and old alike, the consequences of long periods in low-paid work are very serious. It strains relationships, makes household formation and stability much harder to achieve. It contains the prospect of even worse poverty in old age. It makes home ownership very unlikely. It is the extremely high private cost paid to maintain the profit margins of business.

For some time it has been possible to be working and poor in Australia. If “WorkChoices” is not defeated we will arrive at the situation of many workers in the US where you can be working full-time and living in your car.

The website for the Low Pay Project can be seen at www.lowpayproject.com.au

Howard can barely keep a straight face when he says that his government is the best friend the Australian worker ever had. He trotted out the none-too-convincing claim again recently while making the distorted and misleading assertion that real wages for Australians are growing strongly. “Under this Government, real wages have increased by 16.8 per cent — compared with only a 1.2 per cent increase under 13 years of the last Labor Government. More than 1.7 million jobs have been created since March 1996.”

He was also spruiking his “WorkChoices” industrial relations changes, saying that the changes were necessary to keep the good news stories flowing.

Every now and then, reports surface that shed light on the reality behind the Government’s hype. One such report was released recently on the conditions of low-paid workers and the likely effects of “WorkChoices”. It was funded by the Australian Research Council, the Brotherhood of St Laurence, the Liquor Hospitality and Miscellaneous Workers Union, SA Unions, Unions NSW and the Victorian Trades Hall Council. Living Low Paid: Some Experiences of Australian Childcare Workers and Cleaners is the work of Helen Masterman-Smith, Robyn May and Barbara Pocock and blows many of Howard’s carefully crafted myths apart.

The myth of wages growth

For example, Howard’s talk about average increases in real wages must be considered in the context of a rapidly widening income gap. Since the PM took office, chief executive salaries are now 63 times that of average workers. In 1989-90, that figure was 18 times. At the other end of the income scale, 28 per cent of Australian workers are casual in their main job — a situation that contributes significantly to the growing proportion of the working poor in the labour force.

For the study, the low pay mark is set at two thirds of median earnings — $14 an hour, $533 a week or $27,716 a year at today’s prices based on a standard week of 38 hours. In the mid 1990s, 14 per cent of Australians fell into this category. Today 20 per cent of Australians can be described as working poor. And, as the report points out, the arrival of the “WorkChoices” legislation on the scene will only accelerate the downward trend in living standards for many Australians. Geoffrey Giudice, President of the Australian Industrial Relations Commission is quoted:

“People with low skills, low bargaining power, are heading for (the five minimum conditions that comprise) the Fair Pay and Conditions Standard, which will have an effect on their incomes. This will be accompanied by a slowdown in the rate of growth of minimum wages — that’s what the Fair Pay Commission is for … If those things are going to occur, they’ll probably have to be accompanied by a reduction in social welfare, otherwise the incentive to work will reduce.”

Other myths used by Howard & Co to justify their brave new world of casualised work, job insecurity and unpredictable hours are also exposed. The study tested the apologetics for workplace “reform” including “WorkChoices” by examining the circumstances of a group of interviewees; 18 childcare workers and 23 cleaners.

The “pin money” myth

The first myth is that low paid workers are cushioned by living in households with other earners — usually a well-paid spouse. This situation only applied in a small number of cases. None of the workers thought of their income as “pin money”. For most, their wages are crucial to the viability of the household. Some had low-paid partners who work a number of low-paid jobs to keep afloat. Others were not in relationships in which the income is shared.

The report contains extracts from the interviews. The details of these insecure lifestyles are disturbing, though increasingly familiar. Jenni explained her predicament:

“… I’d like to contribute half but there’s no possible way I can.… And I feel like he … occasionally resents me … ‘well if you don’t pay half, you can do all the cleaning and earn your keep that way.’ … And I’m like ‘I don’t think so’. And that actually has ended up us living separately. … His response is go out and get another job that earns more money. … [but] I like my job. I feel I’ve got a very rewarding job. And I feel that I won’t get that from anywhere else. But then I also think, ‘well, okay if I was to go out and get another job that pays a lot more, where do I start?’”

The “top it up with welfare” myth

The second myth is that low-paid workers can supplement their income with second jobs or welfare. This “easier said than done” solution ignores a lot of realities. Many casual jobs, cleaning jobs for instance, have such variable hours and pay that managing social security claims becomes a job in itself. The demands of the job can be so heavy as to make it physically impossible to consider more work. The shifts can be unpredictable, which prevents any commitment to a regular second job. Sally explains:

“My cleaning [job] is only relief… I could go for months without having anything, and then I can have a week where I have to do like 15 hours. …and I tell you what, it gets exhausting. I’m exhausted. … I try for it not to affect my [childcare] work because … it’s not fair on the children. I need to always give a hundred per cent. … I had a set [childcare] shift where it was 7.30 to 2.30 every day and probably about two years ago … I was made to quit my [second] job so I could do rotating shifts. … I can’t do it all the time because of my working hours … the times just don’t meet.”

The “stepping stone” myth

The last myth is that a crappy low-paid job is a stepping stone to a better paid, more fulfilling one. The assumption here is that all these low-paid workers are just starting out after leaving school. However, according to the Australian Bureau of statistics, one in four cleaners (for example) is over 55 years of age. Many are skilled workers thrown overboard by Australia’s de-industrialising economy or women returning to work after rearing children. The prejudice against workers in this situation was reported by several of the interviewees. Paula is typical:

“… because you’re happy to do a lower paid job, you know, they just keep you there … and then you get older, with me anyway, they probably think oh, you’re too old, or they give someone, a younger person, a go because they’re younger and they don’t have responsibility. I don’t know why, I think they’re against old people.”

For young and old alike, the consequences of long periods in low-paid work are very serious. It strains relationships, makes household formation and stability much harder to achieve. It contains the prospect of even worse poverty in old age. It makes home ownership very unlikely. It is the extremely high private cost paid to maintain the profit margins of business.

For some time it has been possible to be working and poor in Australia. If “WorkChoices” is not defeated we will arrive at the situation of many workers in the US where you can be working full-time and living in your car.

The website for the Low Pay Project can be seen at www.lowpayproject.com.au

Bob Briton