6-05-08, 9:23 am

Original source: The Guardian (Australia)

Between 700,000 and one million jobs in the service sector face the chop in the biggest off-shoring of Australian jobs in our history, according to a comprehensive analysis of Australian labour market trends. The Australian Services Union, the Financial Sector Union (FSU), the Communications Workers Union (CEPU) and the Community and Public Sector Union (CPSU) met last week with the Service Economy Minister Craig Emerson. The unions have launched a campaign to defend service sector jobs and are seeking measures from the government to stem the flow of jobs to lower wage locations overseas.

The report, Off-shore and Off-work, was commissioned by the Australian Services Unions (ASU) and undertaken by the National Institute of Economic and Industry Research (NIEIR). It found that one in ten service sector jobs could be sent offshore over the next 20 years.

The Australian service sector accounts for four out of five Australian jobs and 80 per cent of our economic activity. It includes: banking, insurance and finance; telecommunications, the media and entertainment industries; consulting, tourism and retail; services provided by government, such as education, health and welfare; and other personal and business services.

'A worse case scenario could see Australia losing 1,000 of these jobs every week offshore over the next 20 years,' said Leon Carter, National Secretary, FSU.

'The service sector is the cornerstone of the Australian economy, with other sectors such as manufacturing, agriculture and mining either in decline or facing significant long-term challenge,' the ASU said.

Unlike the experience of Australia’s manufacturing sector, these would not be the lower skilled jobs. The CEPU points out that rapid changes in telecommunications technology over the last decade are making an ever-widening range of jobs vulnerable to off-shoring.

The research identified a seven point risk predictor checklist so workers can find out if their job is at risk.

'If you have a phone and computer for your work and don’t need face to face contact, your job is at risk,' said Leon Carter.

'Ask yourself — when was the last time I had to physically see someone in person to get my work done — and see if your job could be next.'

Off-shore and Off-work pointed out’ 'At some point in the future, the virtual office will become a reality. Only services that require face to face contact (nursing, wait staff) will be tied to a particular location.'

It also noted: 'Service industries will be based on a global workforce with firms seeking to maximise efficiency and competitive advantage based on global availability of skills, scale, quality, innovation and cost competitiveness. At this point, employment in many parts of the sector will be premised on globally contestable remuneration and costs.'

Unions face downward pressure on wages and conditions by employers if the jobs remain in Australia. That is, unless the wages and working conditions overseas can be raised.

'In the short term, the recently announced review of the Australian tax system should consider new incentives to retain jobs in Australia. Iconic Australian brands should not be allowed to shift jobs offshore,' said Linda White, ASU assistant national secretary.

The unions identified the top six Australian companies which are leading the off-shore drive; Qantas, Telstra, ANZ, NAB, Westpac and St George Bank, who have already off-shored work in data processing, IT and call centres.

Earlier this month, the FSU called for a review all bank licensing arrangements to ensure that Australia’s major banks maintained back office jobs in the country.

The call followed revelations that Westpac had plans to send more than 3,000 back office jobs to overseas locations such as India over the next three years, in move that would deliver a heavy blow to the Australian finance industry.

'We need a staged intervention with the establishment of a Service Sector Task Force which brings together trade, investment and industry policy. This is the only way to address this dire prediction,' said Stephen Jones, National Secretary, CPSU.

'Back office workers are the backbone the Australian’s major banks performing hundreds of important task such as handling customers’ sensitive banking information,' Leon Carter said.

'Wiping out more than 3,000 of these jobs will mean that only the façade of an Australian bank would be left behind. In essence, Westpac’s announcement is a carve up of its business and its Australian employees are being treated as off-cuts.'

From The Guardian (Australia)