AUWU visits Cash with plea to urgently defer ‘mutual’ obligations penalties
Consultation with the community sector and small business is needed to minimise risk to more than 1.6 million people relying on income support
The Australian Unemployed Workers’ Union hand delivered a letter to Prime Minister Scott Morrison and Senator Michaelia Cash on yesterday with an urgent request, imploring them to defer the reintroduction of ‘mutual’ obligations penalties.
We are asking the government to show mercy and compassion to people who rely on welfare to survive, particularly the hundreds of thousands of new people unfamiliar with ‘mutual’ obligations penalty system.
The AUWU is deeply concerned about potential unintended consequences of the next phase of ‘mutual’ obligations, set to begin on 28 September. We believe 10 days’ notice, with limited communication, will have severe financial, emotional and mental health effects.
We have been promised detailed information that has not been delivered, and we believe it is no longer feasible for the more than 1.6 million people on payments that have requirements under the employment services system to be fully informed about the new rules by Monday.
We understand the government’s position is to reintroduce mutual obligations. While we disagree with this policy we are looking to be consulted to ensure that advice is correct in order to support welfare recipients and make sure the reintroduction goes as smoothly as possible.
The AUWU needs this extension so that we can the have confidence to use our channels, and the trust we have built up among people on JobSeeker and related payments, to assist in ensuring people are notified and educated about the changes well ahead of time to minimise any unnecessary emotional and mental harm.
As of Monday irresponsible and untrustworthy job agencies will have complete power to cancel a person’s income support payment instantly.
Throughout the pandemic people have been coerced into signing job plans that do not recognise their needs or reflect their circumstances – circumstances that may now make it difficult for them to fulfil job plan requirements and put them at risk of losing their payment.
There are hundreds of thousands of people who, for the first time, will be engaging with a job agency while penalties are in place.
Without more time and information this process will lead to people unexpectedly losing their payment.
We believe the minister should also consult small business groups, whose members are set to be overwhelmed with job applications that will waste their limited resources.
The extraordinary number of job applications that will be required – up to around 12 million under the new rules – will have flow on effects on the administration of small businesses at a time when they too are struggling with limited resources in the midst of a painful recession.
People being forced to apply for jobs will not decrease the unemployment rate.
‘Mutual’ obligations penalties, scheduled to resume on Monday 28 September, must be deferred until at least 31 December to allow time for adequate consultation about the meaning of these changes and to protect the wellbeing of more than 1.5 million people who rely on income support to survive.
Media contact: 0413 261 362 / media at auwu.org.au
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