The closure of United Employment has left a great many disability workers in the lurch. They are now dealing with enormous economic damages, including an estimated $6 million in lost entitlements. Fair Work Ombudsman Anna Booth has launched a probe into entitlements owed to former workers of the company. It is not this fatal case alone that has raised alarms about deeper, systemic issues plaguing Australia’s disability sector.
Labor hire United Employment was the labor division of We United Aus (WUA). Unlike the previous example, this private provider is funded directly via the National Disability Insurance Scheme (NDIS). United Employment had a complicated business structure. It engaged with at least six other third companies, complicating matters even further for its workers. As the investigation continues, former employees have come forward complaining about missing wages and superannuation payments.
Investigation into Outstanding Entitlements
This investigation is the second stage of a wider audit into over 100 other disability support service providers. She observed that issues around unpaid pay and superannuation have doubled in the past five years.
“Right now we are investigating over 100 disability support service providers, and that’s in addition to conducting what is a broader inquiry where we talk to a range of employers and workers about their workplace experience,” – Fair Work Ombudsman Anna Booth
The immediate cause of the investigation is the extraordinary high number of inquiries. There are 75,000 total. Our collective work has returned more than $68 million in back wages to workers. Individually, the disability sector is massive, with hundreds of thousands of providers. Fewer than 10 percent are registered with the National Disability Insurance Authority (NDIA).
Recent financial hardships suffered by workers such as Nathan Secomb serve as a painful reminder of what is at stake. From November until June, he and others like him did not receive any superannuation payments, which put them at risk and without an essential benefit.
Workers Share Their Struggles
Stephanie Shoobert, a 43-year-old disability support worker, recently signed onto a new not-for-profit operator under threat of being fired. Sadly, her transition did not follow over her leave entitlements, making her feel deserted.
“I was doing so much overtime and so many extra shifts. I was one of the ‘go-to’ people when shifts couldn’t be filled,” – Stephanie Shoobert
Shoobert shared her commitment to work, described how she would frequently cancel her own plans to take shifts and help clients. Now, she faces significant financial strain.
“I’m a good $10,000 down in just super and tax alone,” – Stephanie Shoobert
Her story underscores one of the predominant challenges facing thousands of workers in the industry. These funded projects are currently in limbo due to an administrative lapse.
Angus McFarland, counsel for some of the displaced workers. As a result, almost 500 staff cannot have their superannuation or leave accruals recognised. At one point, 87 percent of them went unpaid for more than three weeks, adding to their suffering.
“We understand that’s up to $6 million of workers’ entitlements that’s gone missing,” – Angus McFarland
The State of the Disability Sector
Fiona MacDonald brought to light the systematic problems workers in the industry are detected. She painted a picture of an entirely unregulated, wild west, with new inexperienced operators. This rapid boom and bust of new competitors have undeniably led to volatility in the emerging industry.
“It is not a well-regulated sector; it is full of a whole heap of new providers. It is a market that, in parts of it, is really driven on price and inexperienced operators,” – Fiona MacDonald
That’s a problem, MacDonald explained, because so many of these workers work alone, frequently going into clients’ homes without supervision or back-up. This disconnect can create harmful situations, like what former United Employment staff are facing right now.
The collapse of United Employment has shone a light on the need for increased regulation of the disability sector. Further investigations still are continuing. We think that these measures together can produce a safer America for our most vulnerable workforce who undergird our essential services.
