Industry's dirty little secret kept hidden
Sham contracting among some employers in the textiles, clothing and footwear sector means outworkers continue to be abused, according to documents tendered to the federal government earlier this month.
In a submission to the Rudd Government's TCF Review, Homeworkers Code of Practice Committee (HWCP) members said homeworkers in Australia typically worked 12-hour days, six or seven days a week, for pay equal to about one third of the amount recommended under the Federal Clothing Trades Award.
The committee stated that in addition to experiencing poor working conditions and underpayment, homeworkers rarely received industrial entitlements such as paid annual leave, superannuation or sick leave due to the prevalence of "sham" contracting arrangements.
"Although homeworkers in most states are legally required to be considered as employees, homeworkers are most commonly pressured into establishing certain business structured so, in the employer's eye, they can be treated as independent contactors."
HWCP national program coordinator Tommy Clarke said although various improvements had been made to relevant legislation and awards, exploitation persisted due to a "near-universal" lack of knowledge about employer obligations. Avoidance of the legal obligations, and minimal enforcement and compliance systems, only hindered the process, he said.
"Whether it's deliberate or unconscious, the shameful convenience of this ignorance needs to be addressed through better resourced, targeted and industry-wide educational efforts."
Clarke said his claims were supported by The Brotherhood of St Laurence's 2007 'Ethical Threads' report into the Australian garment industry which suggested wage rates for homeworkers may have actually worsened in the past five years.
The committee called for the government to improve its efforts to raise industry awareness of the issue. While acknowledging its award modernisation process would go some way to streamlining the standards, it said increased compliance activities would ensure the various laws and standards were being adhered to.
By Tracey Porter