The defining question many journalists ask politicians on any campaign trail is; ‘Do your policies pass the pub test?’
If a politician went to any pub in Australia, from inner city Melbourne to the back of Bourke, and they asked the people in that pub, this simple question—would Australian’s prefer reliable or less reliable employment—what do you think the answer would be?
It may be a no-brainer, people’s voices advocating reliable employment would drown out any dissenters. People want to know they can pay the mortgage with some certainty, as do the institutions lending them the money.
Irrespective, couching the future employment debate in terms of reliability of employment has almost no airplay. What politician would want to ask this question anyway?
Australians have had 26 years without a recession. Currently, there are low unemployment figures, stable casual employment and manageable underemployment rates, if the figures are to be believed.
In addition, Australians are already being groomed to believe the future is about flexible employment, self-employment and the gig economy. The future is being painted as a working environment where most people have a choice over when, and how they work, all aided by the marvels of technology.
Interestingly major financial institutions and insurance companies are rapidly developing products on the premise that incomes will become less reliable. Their research tells them; regular pay slips will not be able to be relied on for many credit scores.
For example, people who are denied access to the rental property market because they don’t get the required credit scores can, in South Australia, be helped into rental accommodation through a social score.
This is when a potential customer agrees to the company’s algorithm access all their social media accounts and emails so they can identify how reliable they are to pay.
Pray you haven’t been hacked.
Australian banks don’t currently provide loans based on social scores. They are however investigating social scores as a potential option for assessing financial risks. They, like many other financial institutions and insurance companies, have read the tea leaves. They realise many customers will have less reliable incomes; this will affect their business models.
For those who believe these types of products are created for only a small proportion of the population, it may be worth reviewing current data and world trends.
Demographer McCrindle states the gig economy, characterised by temporary jobs and part-time contracts, is growing at exceptional speed. The casual workforce now represents a fifth of the Australian workforce.
Interestingly the research highlights that 57{01332a80e2e652688e18927fa9a6162580960d47bc08263a3993439d666dcd52} of workers in the current gig economy choose this option and are happy about it. On the flip side, 43{01332a80e2e652688e18927fa9a6162580960d47bc08263a3993439d666dcd52} who are forced into this option are not happy campers.
What I am interested to know is how many people would make this choice if both partners had less reliable work, or were dependent only on themselves to provide their financial security?
Employers are increasingly working towards an on-demand and more flexible workforce as technologies evolve. Within the space of a decade the three traditional definitions of employment, full-time, part-time and casual employment has exploded into at least twenty new definitions which mostly reflect flexibility.
These include new employment terms like Zero hour contract. A type of contract between an employer and a worker, where the employer is not obliged to provide any minimum working hours, and the worker is not obliged to accept any work while under this contract. It is hard to comprehend such a contract could exist, or be enforced.
There is now a wide range of contractors including Project, Fixed Term and Temporary Contractors sourced individually, or through labour-hire companies or outsourced overseas.
Digital Platforms like those of Uber, Airbnb and Deliveroo linking suppliers with users in the sharing economy, have blasted onto the employment scene. The speed of change has been so fast it is hard to believe Uber only commenced in March 2009 and ‘Uber-isation’ is a word widely familiar in any pub.
There are many advantages in providing more flexible work arrangements, even if there are elements of insecurity, particularly in a prosperous economy. However, the current secure Australian also needs to clearly understand their personal vulnerabilities when weighing up their options, particularly as Australians are reported to have some of the highest personal debt levels in the world.
People working in this economy currently don’t get sick leave, holiday pay, redundancy or any kind of paternity leave. Some can be called into work, organising their life expecting a full day’s pay, only to be sent home within hours if there are no customers or clients.
People can be terminated with limited recourse because some employers are changing definitions of employment. Interestingly, the new terminology for getting fired on a digital platform is called being de-platformed.
In 2017 according to a recent article in The Conversation, around 100,000 workers in the gig today won’t have enough retirement savings and there is significant employer non-compliance in this area already, (this is due to the “confusion” over dependent or independent contractor status. As an independent contractor you are not eligible to receive super; what kind of contractor are you?)
This number, without thoughtful consideration and policy action, may rapidly escalate if the prediction of 40{01332a80e2e652688e18927fa9a6162580960d47bc08263a3993439d666dcd52} of Australians participating in the gig economy by 2025 is realised. America is anticipated to reach this level by 2020.
Any Australian sitting in any pub would believe in a fair go for all Australians. Most of us still believe we are a lucky country and rightly so. However, for us to remain prosperous Australian’s living in our lucky country, we must remain diligent so our employment conditions, including reliability of income, passes the great Australian pub test.
Let’s cheers to that.
Related article survival kit
