Government Department Faces Backlash Over Call Centre Outsourcing Plan
The Department of Employment and Workplace Relations has sparked controversy with plans to replace a group of short-term call centre staff with a third-party contractor, despite government commitments to reduce outsourcing within the Australian Public Service.
Contract Limits Force Staff Changes
According to the Community and Public Sector Union, thirteen workers at DEWR's contact centre have reached the maximum period they can remain in short-term positions due to laws designed to improve job security. Rather than offering these employees permanent roles, the department intends to let them go, with at least one worker reportedly approached by a third-party provider to effectively reapply for their own position.
The union has expressed serious concerns about this approach, warning that vulnerable Australians contacting the government for assistance could be negatively affected by the loss of experienced staff.
Department Defends Labour Hire Use
A DEWR spokesperson acknowledged that the jobs in question constituted "core work" - exactly the type of positions the Albanese government had committed to keeping within the public service. However, the spokesperson defended the department's position, stating that while APS employees should be prioritised for core work, "limited use of labour hire" staff was permitted where necessary.
"The department values the contribution of all staff," the spokesperson said. "All contact centre workers receive comparable pay and conditions, including the same training, support and flexible working arrangements to ensure consistent service quality."
DEWR has already filled approximately 55 positions with employees provided by external companies, with both the government and union describing this workforce as "labour hire."
Workers Express Disappointment and Concern
One affected worker told media they were "gobsmacked and disappointed" by the department's decision. The employee, who regularly handles calls from vulnerable people awaiting government payments, emphasised the importance of experienced APS staff in these roles.
"That core work needs to be done by experienced APS staff, absolutely," the worker said. "You need the knowledge, you need the empathy, you need the understanding."
The worker reported that thirty other positions in the DEWR contact centre were outsourced to private contractors last year, resulting in significant increases to call wait times - from approximately twenty minutes to two and a half hours or more in some cases.
"The calls aren't being picked up quick enough," they explained. "There's not enough staff and then that just snowballs."
Union Warns of Service Quality Impact
Beth Vincent-Pietsch, deputy secretary of the Community and Public Sector Union, expressed serious concerns about the outsourcing of contact-centre work involving "very vulnerable people" who often believe they're speaking directly with government representatives.
"[The government] should be worried because they are losing people with experience and capacity who are performing well, taking difficult calls," Vincent-Pietsch stated. "Any new people coming in the door are not going to be able to have the capacity to take those phone calls straight off the bat because they do take expertise and knowledge."
She described the situation as "outrageous" and argued that DEWR should serve as the "employer of choice" given its responsibility for workplace standards.
Broader Pattern of Government Outsourcing
This development occurs against a backdrop of widespread private call centre use across multiple government agencies, including the Australian Taxation Office, Centrelink and National Disability Insurance Agency. Despite Labor's initial commitment to bring skills back in-house, efforts to curb reliance on external consultants and outsourced workers appear to have stalled.
Some workers have described a system characterised by inadequate training and lower pay rates that prioritises profit over worker wellbeing and service quality. Starting salaries at outsourced centres reportedly average around $52,800 annually, compared to more than $72,000 for many public servants performing similar roles.
The DEWR spokesperson noted that the department considers operational requirements, workforce demand and available budget when undertaking call centre recruitment, and that legislation limits their use of fixed-term contracts. Employment Minister Amanda Rishworth declined to comment on the specific situation.
