The CPSU wants to end outsourced government employment services.

The Community and Public Sector Union (CPSU) says Australia should reinstate the Commonwealth Employment Service (CES) - a successful federal government employment service that was privatised by the Howard Government in 1998.

At the time, the government argued that privatising employment services would create competition and ensure quality services for job seekers while being cost-effective for taxpayers. 

However, the reality has been different, with only a few multinational companies dominating the sector, making substantial profits, and failing to deliver desired outcomes for job seekers and local employers.

Prime Minister Anthony Albanese has acknowledged these shortcomings, recently stating that “some of the system that's been established by our predecessors is about ticking the boxes rather than providing that support”.

The CPSU argues that the current model relies on an ineffective and punitive compliance framework that does more harm than good. 

They have called for its immediate abandonment and the establishment of a modern, fit-for-purpose CES that would provide better outcomes for job seekers, the government, taxpayers, and employees.

In its submission to the Inquiry into Workforce Australia Employment Services, the CPSU has made several recommendations. 

Firstly, the union calls for the immediate suspension of mutual obligations, as it is a punitive system that does more harm than good. 

Secondly, it recommends the end of for-profit employment services, citing the inherent conflict of interest. 

Instead, the union proposes rebuilding a public sector-based employment service. The CPSU suggests that the best option would be to create a new modern CES, complemented by specialist community-based services, to provide enhanced support to job seekers and rebuild the skills and capacity of the Australian Public Service (APS). 

Additionally, the union is urging the government to increase the number, range, and location of entry-level jobs in the APS.

“It's not a system we can tinker with or tweak. It is a broken system that we need to replace,” says Melissa Donnelly, CPSU National Secretary.

She said that ‘insourcing’ employment services through the creation of a modern CES would benefit the government, job seekers, employers, and the public. 

Donnelly highlighted the potential of a new CES to rebuild APS capacity and reshape labour market changes to meet policy challenges and economic priorities.

Recent months have seen a growing number of social media posts calling for the return of the CES, indicating public support for the initiative. 

The CES, established in 1946 after World War II, played a crucial role in achieving full employment in Australia for several decades. 

Although its exact contribution to low unemployment levels is difficult to measure, the CES served as a central labour exchange that helped both unemployed and employed individuals find suitable work.

Former CES staff members have expressed dismay at the current employment services system, highlighting the loss of on-ground knowledge and information. 

They recall the CES's positive impact on people's lives and the close relationships they built with local businesses and employers. 

The privatisation of the CES in 1998 led to profit-focused practices, low staff wages, and high turnover, resulting in a lack of understanding of local labour market conditions.

The CPSU's campaign seeks to address these concerns and rebuild publicly-owned employment services to better serve job seekers, employers, and the community.