TCF workers cheated twice over

NATIONAL: A $50 million Federal Government scheme aimed at supporting retrenched textile, clothing and footwear (TCF) workers has been branded a "shameful failure" by peak industry bodies.

Australian trade and union organisations have called for a review of the TCF Structural Adjustment Package (TCF-SAP), after an investigation found just over $400,000 had been spent on supporting 822 workers in the past three years.

Introduced by the former Federal Government in 2005, the 10-year scheme was designed to assist retrenched TCF workers secure alternate employment. However the Textile, Clothing and Footwear Union of Australia (TCFUA) has slammed the initiative as "extremely ineffective" and accused the Federal Government of pandering to employers and privatised employment service Job Network.

An analysis of TCF-SAP spending figures showed employers received 72 per cent ($6.2 million) of funding from July 1, 2005 to February 18, 2008 - grants approved directly by the Minister. Job Network had also been reimbursed approximately $2.4 million over the three-year period with most of that funding, according to TCFUA officials, currently unaccounted for.

"Over $2 million that has gone to Job Network has not been spent on assisting retrenched TCF workers and it is unclear what this money has been spent on," a TCFUA submission to the Rudd Government alleged. "Since its commencement in 2005, less than $500 was spent on each individual worker and only 822 workers were provided with this assistance."
"No figures have been released yet to indicate what portion of this money was spent on paying for retraining."

The spokesperson for Job Network could not be reached at the time of press. Union and trade officials were further incensed by a recent report from the Productivity Commission, which noted 17,000 employees had left the sector between 2003 to 2007. The fact only 822 displaced workers had registered with the Job Network scheme to date was a sign of gross neglect and mismanagement, according to the TCFUA.

"Retrenched TCF workers have no way of finding out about the TCF-SAP unless the union tells them before they leave the workplace," the TCFUA alleged in its submission. "Retrenched workers who sign up for assistance through the Job Network experience a disappointingly low level of support."

TCFUA officials have urged the Rudd Government to overturn the existing scheme, making it solely worker focused and limiting the role of Job Networks in work placement opportunities. The union wanted an emphasis on training TCF workers and providing income support to optimise their chances of gaining full-time work.

While the Council of Textiles and Fashion Industries Australia (TFIA) has thrown its support behind the promotion of worker's rights, it did not believe the TCF-SAP should support TCF employees only.

"The Structural Adjustment Program extends across all sectors of the TCF industry and is intended to be spread across employees, regional bodies and the firms involved," it noted in its own submission to the Rudd Government. "It is important that this scheme be continued."

Under the scheme, employers are entitled to 'Restructuring Initiative Grants' for expenses on ancillary activities and expenditure on second-hand TCF plant or equipment. TFIA general manager Lachlan Caddy said the deterioration of onshore manufacturing meant both employers and employees were entitled to support from the Federal Government.

"The industry is still in transition and Australian manufacturers that haven't moved away from producing commodity products will suffer, as will in the long term, their employees."

The Productivity Commission further polarised debate by suggesting the cost of retaining TCF workers in the first instance was prohibitive. It predicted structural changes would soon induce a contraction in TCF employment of around six per cent.

"The costs to the Australian community of retaining jobs in the industry is clearly significant," the Commission noted in a report titled 'Modelling Economy-Wide Effects of Future TCF Assistance'. "The value of support from the other members of the community for each job thereby retained in the industry would be more than $150,000 per year."

IBISWorld analyst Raghu Rajakumar agreed the cost of TCF job maintenance would not necessarily be a priority for the Federal Government. "While some government reforms may involve further contraction in the TCF sector, they are designed to create expansion in other industries that are considered more 'value added' as opposed to basic textiles manufacturing," he said.

"Securing another job has been possible for TCF workers, often in jobs that would be considered far more attractive than, for example, working on the production line in a footwear manufacturing facility."

Rajakumar predicted niche TCF products - such as high-end products from designer labels Kirrily Johnston, Farage, and Jayson Brunsdon - would require employees in Australia but low-cost, low value added textile production would be phased out even further.

"As clothing begins to more closely resemble a commodity product, industrialised nations such as Australia may phase out domestic production almost completely to focus on service sectors such as communications and finance." The future of TCF employment in Australia is expected to be addressed when the Federal Government releases its review on the sector on August 31, 2008.

By Assia Benmedjdoub