The New Work Standard
- Emma Anderson
THE FUTURE OF WORK – IS IT TIME FOR NEW STANDARDS?
During 2020, the global pandemic COVID-19 has seen Australia, like many other nations across the world, struggling to forecast what the future of work will look like given the pandemic has impacted almost every aspect of how we live, learn and earn. While a number of short-term financial safety nets have been implemented in many countries, Australia included, an economic downturn is upon us and has hit young people particularly hard. The full weight of economic and social impact is yet to be seen and depends on both the trajectory of the virus, as well as policy and market responses over the next few years.
But as this report launches, Australia is entering its first recession in three decades and the youth underutilisation rate is estimated to have to reached more than 60% (as at May 2020), levels not seen since the Great Depression.1 Australia has long been at the forefront of industrial reform – crucial changes that introduced minimum wage, enterprise bargaining and compulsory superannuation have ensured that the majority of Australians have had access to workplace protections. However, even before Australia was thrown into a response to a global pandemic, a growing proportion of workers sat outside of this safety net – many of them young people.
Just prior to COVID-19, The Foundation for Young Australians (FYA) undertook research looking at how young people were engaging in work outside the traditional definition of a nine-to-five full-time job. This research covered work that we defined as flexible work - encompassing part-time, casual, self-employed work and gig work, with a particular focus on what the gig economy meant for young people. We found that young people were disproportionately represented in flexible work - and that this number was growing. For example, since 2016, we estimated there had been a 340% growth in the number of people engaging in gig work (on-demand work obtained through digital platforms) with people aged 18-34 years-old making up more than half of this number.
This report presents the findings of that research, with the addition of some new perspectives given the current times. While it identifies there are opportunities, it highlights a number of risks associated with flexible work, many of which we are now seeing play out. For example, young people in casual employment are experiencing greater vulnerability around financial and job security due to the impact of COVID-19. The binary nature of our labour regulatory systems sees workers as either employees or contractors, meaning some have access to benefits and insurances (such as sick leave and superannuation) while others do not. The Australian Government’s fiscal response to COVID-19 introduced a new, albeit temporary, binary – those who had enjoyed 12 months of continuous employment were protected through JobKeeper, while those outside of that safety net simply were not. Many of these are young people.
Although our systems may see workers through a binary lens - where workers must fit neatly into one camp or another – our research has found that this is not the case. The New Work Standard report identifies that before COVID-19 there were eight different ways that young people were engaging in flexible work. This is based on whether this work is their primary income, the level of choice involved (ie: they want to work this way or they are unable to find other options) and whether it contributes to their professional or personal development This presents challenges in how we ensure young workers have access to protections and support to minimise their risks in flexible work, while not compromising the opportunities that it can provide, if we use a binary approach. To meet the changing requirements of an increasingly flexible workforce – which arguably the impacts of COVID-19 will further influence - risks for young workers have to be better managed. A new approach is needed to understand what ‘good work’ or ‘quality jobs’ are.
This is a multidimensional concept that spans more than just income or security. As the Government develops its approach for job creation through JobMaker, ensuring that any jobs created constitute both quality and secure work should be at the forefront. FYA has developed a framework that can help protect Australians from the risks that come with flexible work – the Good Work Standard. The Standard’s role is not to replace existing legislative or regulatory protections but rather to complement them, and articulate a set of principles that can evolve over time where required. Although initially developed in response to what we understood before COVID-19, FYA believes the Good Work Standard is as relevant as ever as Australians consider their future livelihoods and quality of life. Underpinned by four pillars of ‘good’ work, the Standard recognises that providing good work is not only about minimising risk and maximising opportunity, but also recognising that Australians engage with work in many different ways, depending on their circumstances, and will continue to do so.
The pillars of good work include:
- Access and inclusion: ability to secure work through an equitable approach to hiring and contracting
- Protection and wellbeing: protection against injury or harm, access to income security and provision of support for personal or community events
- Quality and control: fair agreements, contracting and processes for work and the ability to earn a living wage, access to fair pay and standards for wages
- Growth and development: access to opportunities for progression including ways to build skills and networks as well as recognition of skill development and portability across work
While the Standard can apply to all workers, FYA believes Australia should start by looking at young people, who are most at-risk of falling behind in our economy, now more than ever.