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Government outsourcing sparks staff underpayment accusations

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Underpayment Accusations

An investigation reveals that the federal Department of Parliamentary Service (DPS) is allegedly underpaying electricians and trade staff at Parliament House, while opting to outsource the work at a significantly higher expense, according to unions.

The Department of Parliamentary Services serves as the main support agency for Parliament House, employing approximately 1,000 staff and operating with an annual budget of about $120 million. According to the Electrical Trades Union, full-time electricians working for the DPS earn approximately $30,000 less than the industry average.

According to the ETU, the low wages have led to a staff shortage in the department, resulting in outsourcing roles at a significantly higher pay rate. According to reports, various refurbishments and upgrades have been contracted out to different companies, such as switchboard upgrades, Digital Addressable Lighting Interface (DALI) lighting control systems, and general refurbishments.

Electricians stage walkout

According to ETU NSW and ACT Secretary Allen Hicks, DPS’s decision not to increase wages for full-time trades staff was illogical.

“It’s a kick in the guts to have contractor staff who’re paid competitive industry rates working alongside trade-qualified permanent employees who’re earning the equivalent of a contractor apprentice,” he said in a statement.

“We have federal politicians acknowledging the need to fill the chronic shortage of electrical workers, yet one of their own departments is offering their trades staff a dud deal that does nothing to retain and attract the workforce.”

Electricians and tradies at Parliament House staged a walkout in protest over their pay, gathering on the front lawn of Parliament House on Monday afternoon during a 24-hour strike.

“The department has continued to ignore our calls for fairer wages for trades staff working inside Parliament House, so we’ll make them loud and clear out the front,” Mr Hicks said.

“The department must do the decent thing and provide their permanent trades staff a better deal that delivers competitive wages.”

The union aims to bring attention to the low wages for skilled trades workers at DPS and emphasise the wage gap compared to contractors in the ACT. Hopes are high that the government will urge the APSC to make necessary changes to the EBA in order to resolve pay concerns for DPS employees. The discussions with DPS have concluded, and the EBA is now being presented to members for a decision.

According to a statement given to Government News, DPS mentioned that they have engaged in negotiations in good faith regarding the proposed EBA with employees and unions, and will be assessing the staff classifications.

“All claims and proposals were genuinely considered within the Australian Government Public Sector Workplace Relations Policy 2023 and advice sought from the Australian Public Service Commission throughout the bargaining process.

“As part of the bargaining negotiations, DPS has undertaken to conduct a review of the classification of staff in the affected areas, which DPS is currently organising.” 

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