Australia’s “JobKeeper” Scheme Falls Short by Design
The Australian “JobKeeper” scheme will subsidize the wages of many throughout the course of this pandemic, but more than 2 million workers are set to be left out entirely. What’s more, the scheme undermines collective bargaining agreements, giving more power to employers in a shift that threatens to far outlive this crisis.
Prime Minister Scott Morrison delivers a statement on COVID-19 in the House of Representatives on April 8, 2020 in Canberra, Australia. (Sam Mooy / Getty Images)
On April 8, the Australian government passed legislation enacting the $130 billion JobKeeper scheme, the largest employer-directed wage subsidy in Australian history. Initially, details of the scheme were unclear. But as specifics have emerged, it is now apparent that many will be excluded from the deal and that, under the guise of crisis relief, the plan is actually reintroducing some of Australia’s most anti-worker policies.
Under JobKeeper, businesses suffering a specified shortfall in turnover due to COVID-19 can access a $1,500 payment per fortnight, per employee — roughly equivalent to the minimum wage. In principle, the employer will pass the subsidy onto their employee. In practice, however, many workers will be excluded, and many more will face dramatic cuts to wages and conditions, potentially weakening union power in the long run.
Thrown on the Scrap Heap
In recent years, employers have aggressively casualized workforces. They have pushed down conditions, for example, by outsourcing work via labor hire companies, by sham contracting, or by dividing businesses into legally distinct enterprises owned by the same individuals or group.
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