Services Australia in hot water as call centres are slashed - what does this mean for you?
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Services Australia is making waves with its latest move to cut its outsourced workload by 30%.
This comes as unions warn of longer wait times for customers trying to access Centrelink services.
The agency informed its outsourced “service delivery partners” that it was cutting the “workload” last Friday, with the decision taking effect as soon as 1 July, the Guardian Australia reported.
The agency has come under fire for its decision, with many insiders and the union warning that it could mean even longer wait times for customers.
Public sector unions also blamed the previous government’s budget for the agency’s inadequacies, pointing out that Services Australia’s capacity could “fall off a cliff after 1 July”.
However, Services Australia has defended the move, saying that it is simply a result of reduced demand for services.
Regardless of the reason, this move is sure to cause some major disruptions for customers trying to access Centrelink services.
Services Australia has slashed contracts with its call centre service delivery partners. Credit: Julian Smith/AAP.
Services Australia's service delivery partners Datacom, Probe, Concentrix, and Serco disclosed that they had contracts worth hundreds of millions of dollars with the government to provide call centre services for Centrelink.
However, Serco and Datacom confirmed that they had been informed by the agency that it will reduce their workload requirements. It is understood that the decision also applies to the two other aforementioned firms.
A Datacom spokesperson said: “We respect their need to adjust our workload according to shifting demands, priorities and economic changes and we look forward to continuing our work with the Services Australia team."
The spokesperson also claimed that the firm is currently assessing what the new protocol would mean for its governmental transactions and its staff.
A Serco spokesperson commented on the matter, confirming that the agency would "no longer need the current level of service from call centre service delivery partners” starting July 1st.
The spokesperson quipped: “Serco’s primary focus now is to ensure all employees affected by this decision are cared for and redeployed within Serco or suitable alternatives are found.”
“Currently, Serco has hundreds of jobs available, and a streamlined process has been developed to support a smooth transition.”
Meanwhile, Concentrix general manager for Australia and New Zealand Peter Monk refused to give comments on “specific client programs”. However, he said that the business was equipped for “fluctuating and seasonal demands.”
Probe declined any requests for comments.
Services Australia’s decision is sure to cause some major disruptions for customers trying to access Centrelink services. Credit: AFP/Getty Images.
The Labor party has been highly critical of the outsourcing of Services Australia jobs, arguing that it significantly increases spending on those firms.
The Coalition, on the other hand, has defended the move, saying that it improves Centrelink’s call waiting times, busy signals and other indicators.
Bill Shorten, the new minister for government services, raised these questions to the agency.
Services Australia’s spokesperson Hank Jongen addressed the issues, saying that the agency's budget has been “reduced in line with the March budget allocation to reflect this change in expected demand”.
“With Covid-19 measures now winding down and less activity supporting job seekers, we no longer require the current level of service delivery partner support," he quipped.
“As part of new financial year adjustments, we will be bringing staff back in-house instead of using labour hire, to fill a range of casual service delivery roles across the agency.”
“We will continue to adjust our service contracts and staffing levels, based on changing priorities, demands and the economic climate into the future.”
Community and Public Sector Union (CPSU) national president Alistair Waters claimed that the decision was prompted by the reductions to the agency's funding in the Coalition's March budget.
He said: “This has meant that Services Australia is now scrambling to balance service delivery needs with a depleting budget.”
“CPSU members have grave concerns that service standards and Services Australia’s capacity to serve the Australian public will fall off a cliff after 1 July because of Scott Morrison’s final budget. It is absolutely critical that the essential services that all Australians rely on are properly funded.”
What are your thoughts on this? Do you think this decision will greatly affect pensioners and other Centrelink recipients?