EMPLOYMENT provider Workways Australia has lost a lucrative federal government contract, resulting in job losses in Victoria and NSW — up to 20 of them on the Border.
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The government this week announced the winning tenders for its “jobactive” system — which includes work for the dole — that will see the number of employment providers reduced from 80 to 44.
CVGT Australia and Sureway Employment and Training will be the providers for all 10 employment services in the Albury region, taking in Corowa, Culcairn, Holbrook and Deniliquin.
CVGT in Albury will also be the sole work-for-the-dole provider.
The Border Mail understands 15 to 20 jobs will go from Workways’ Albury office.
Workways chief Bryan McCormick said the tender process had been the most competitive since the federal government first outsourced employment services in 1997.
He blamed the number of international providers with Australian partners entering the market, as well as a trend toward fewer services.
“The sad thing for Workways is we are losing some highly valued staff who have provided first-class support for unemployed people and employers in regional areas for many years,” he said.
“The loss of business is in no way a reflection on the quality of those services, or our people who deliver the services.
It is more a reflection of the market trend in government outsourcing.”
The government has said it would spend $5 billion over three years on the jobactive system which replaces the Jobs Services Australia from July 1.
Employment Minister Eric Abetz said it would “provide clearer incentives to ensure service providers focused on better preparing job-seekers to meet the needs of employers and help people to find and keep a job”.
The model involves payments at four, 12 and 26 weeks to ensure job-seekers are supported to take up all work opportunities, including seasonal work.
The work-for-the-dole program will also be rolled out nationally.
