GROWTH OF CASUAL EMPLOYMENT IN AUSTRALIA (Essay Sample)

Growth of Casual Employment in Australia Work arrangements differently affect the society and individuals' wellbeing. Employment aspects such as work conditions, employment tenure and pay, as well as the degree of risk or opportunity, affect a worker's overall wellbeing and sense of economic security. In Australia, the nature of employment has become diverse due to growth of other forms of employment apart from the traditional full-time employment which is accompanied by a salary, regular working hours and paid leave. Casual employment has increased in Australia and has come with distinct circumstances as well as affecting individuals both positively and negatively. This paper argues that the growth of casual employment in Australia has benefited both employers and employees. Though the level and nature of casual employment in Australia continue to be argued, most individuals agree that casual employment has risen over the preceding ten years and it is anticipated to continue increasing (Campbell, 2004, p89). In the year 2004, 26% of employees in Australia engaged in casual employment. This percentage was a large increase compared to 6.29% in 1994 (ABS, 2005, p3). In terms of numbers, the number of casual employees in 1994 was 1.4 million. This increased to 2.0 million in 2004. In 2007, the number of employees in Australia was 8.3 million, 62% of Australian population. 2.1 were casuals and women formed 56% of all casual employees. Part time employees formed 27% of employees. This number increased to 29% in 2009 (ACCI, 2003, p6). Today, more than two million Australian workers are regarded as casual workers. In every four employees, one is a casual worker. Australia has the highest number of causal workers in the OECD (Basso, 2003, p16). Casualization is viewed from two perspectives. In the international literature, casualization usually refers to the spread of poor work conditions such as irregular hours, employment insecurity, low wages, intermittent employment and lack of employment benefits (Basso, 2003, p18). However, in Australia, casualization has a different and a solid meaning. Since the employment in Australia has been named ‘casual,' Australian literature defines casualization as the process whereby more workforce is employed on ‘casual' jobs. Casual jobs are understood as jobs that attract an hourly pay rate but with few of other employment benefits and rights. Though trade unions and international organizations see causal work as bad for the workforce, this paper supports that a casualization in Australia is a benefit to employers and employees. Many people may become tired to doing the same job year after year. Casual employment is the answer to such employees who admire the adventure of doing a variety of jobs. Casual employment offers a range of diverse employment as well as employer options. As employees get involved in a variety of jobs, they acquire a broad range of experience (Brustein, 2005, p690). This may open up other alternative job opportunities that such employees may not have previously considered. By employing new people, casual employers benefit in that different people have different knowledge and ability. By hiring new employees, their businesses benefit from different skills and experiences that different employees possess. Besides, casual employment accommodates people with a range of skill types. Often, casual employment involves manual work. Consequently, whether employees are qualified and have various industry kills or are beginners, casual employment accommodates them all and therefore earns a living (Brustein, 2005, p692). In respect to employers, they are able to obtain people of all skills as well as the unskilled to perform different jobs at a low cost and when necessary. Furthermore, most casual workers are paid when they need the cash. For example, most companies and businesses pay their employees on a weekly basis. Employees benefit from getting ready cash every week therefore they do not face hard times. Casual jobs are important for employers and employees. The labour market of Australia is characterized by high incidence of casual employment. Information obtained by the Australian statistics bureau indicates that recent figures of casual employment in Australia suggest that almost 25% of employees are employed on a casual basis (Campbell, 2004, p100). Casual jobs benefit both employers and employees in that in respect to the labour market; they serve as useful entry points for the unemployed and also the labour force entrants and re-entrants. It also increases the prospects of attaining more secure non-casual employment for employees. Casual employment benefits both employees and employers. Pocock et al (2004, p29) supports the data that shows that casual workers, instead of shifting from one casual employment to another and facing unemployment, many casual employees have been in the same casual job for long periods such as more than twelve months. This evidences that casual workers are trapped in the same jobs. This has led to permanent casuals. Therefore, this limits the difference between long-term casuals and permanent workers doing the same job. Besides, some other commentators argue that casual employees lack training. However, they do not comprehend the fact that many casual jobs do not require a lot of training and that the employees learn by experience. Casual workers such as hotel waiters and waitresses require little or no training. When casual labourers stay for long in one job, employers are spared the time and cost of hiring new casuals time and again. Employees also benefit in that they do not shift from one casual job to another. In addition, one of the most imperative benefits that employers gain from casual employment is lower costs. Australian companies that employ causal labourers pay the works on an hourly basis. This means that such companies can regulate and schedule the number of hours for the workers (Watson, 2005, p391). Also, in many states of Australia, businesses do not grant work benefits to casual workers. The failure to grant benefits is an advantage for such companies and employers since they save many funds which could have been used if they employed full time employees who require compensation packages. Casual employment is associated with flexibility. Many people prefer casual work since they find it flexible compared to regular employment (Watson, 2005, p389). They are not entitled to work for many hours and this makes them engage in other activities such as taking care of their families. In the case of students, casual labour becomes the most appropriate since they are able to work, meet their school needs as well as getting time to attend school. For employers, companies have no obligation to schedule more working hours for workers when the workload is limited. Therefore, managers only schedule for casual work when needed. Both workers and employers prefer the flexibility that comes with casual employment because it allows for work on varying times and days. Many employers use causal labourers to compensate for weekend and evening hours that usually not covered by regular employees (Watson, 2005, p393). In addition, employers and employees benefit from casual employment in respect to filling new positions with the right candidates. Many Australian companies accommodate full time, part time and casual workers. In the case of a vacant full time position in the company, managers are spared the trouble of advertising vacant positions. Most causal workers are usually experienced and thus end up filling vacant full time positions in the company (Chalmers and Kalb, 2001, p420). Employers benefit in that they do not incur costs in recruiting and training new employees while casual workers benefit in that they are incorporated into full time employment. Growth of casual employment in Australia has decreased the rate of unemployment. Many casual workers are usually unskilled. They provide unskilled labour for many citizens who engage in manual jobs (O'Donnell, 2004, p10). Also, many students graduate from various universities and colleges with the hope that they would get jobs related to their professions. Finding full time jobs is usually rare so such students end up being casual labourers. As a result, they become employed, earn a living and at the same time gaining workplace experience. Many youths in Australia are employed in casual work and this has decreased the country's unemployment rate. Employers utilize the pool of casual labourers available in the country and avoid the cost of employing experienced and full time workers. Casual workers are paid higher than their full time counterparts doing the same job. This is because casual pay rates are higher than full time rates. Casual workers do not have many benefits like regular employees and therefore they are compensated through higher rates of payment. This is termed as casual loading. The hourly pay rate is equal to full time hourly rate plus 15-25% of the hourly rate (Wooden and Warren, 2004. p76). Often, the pay rate and loading rate are specified by the agreement or award that covers the work. Also, unlike permanent employees, casual workers are entitled to extra pay for weekend, evening and night work. Casual employees enjoy other benefits such as superannuation contributions paid by their employers if they can earn $450 and more every month. They also enjoy higher pay rate for worked public holidays as well as longer parental and service leave. Counter argument: Various studies show that casual employment has a lot of negative impacts. A casual employee is different from a full-time employee in that casual labourer is not eligible to paid work benefits such as holiday and paid sick leave. Also, casual employment is associated with insecurity and restricted possibilities for promotion and training. Pocock, Buchanan & Campbell (2004) highlight that casual labourers have no job insecurity in that they work under contracts and therefore the employer can fire them anytime. They are also not entitled to pensions. They work under insecure tenure and unpredictable rates and hours of pay which are normally below the fulltime level (p28).Causal employees risk a higher chance of being unemployed. This is because their services are often terminated after a particular contract is over. Furthermore, casual labourers are not paid during public holidays and also do not receive a notice of redundancy pay or dismissal (Campbell, 2004, p85). Though there are certain places in Australia where casual labourers are entitled to specific benefits under particular circumstances such as protection from unfair dismissal and granting of paid sick leave, they are not standardized by the federal government and vary from one state to another. A 2005 study conducted by ABS showed that 32% of casual workers preferred to work for more hours and also they lacked enough work that could support themselves and their families. Many casual employees prefer permanent employment (ABS, 2005, p9). This is because their causal work is accompanied by lots of financial difficulties. They face difficulty is budgeting for daily costs. They are also restricted from taking house and personal loans. This leads to further financial hardship. In other words, casual employment impacts negatively on employee's financial wellbeing. The debate on whether casual jobs are a benefit or disadvantage to employees, employers or the Australian labour market is not going to end soon. Supporters view causal jobs beyond the perspective of international literature and see it as important to many Australians. Others view casual jobs as denial of workforce rights since it does not come with job security and other employment benefits. One thing that Australians and others who go against casual work should know is that the today's workplace is unable to accommodate many people due to trends in the economy. Causal jobs help many people who are not able to secure full time employment and enable them to earn a living. They also gain experience which is important in their search for permanent employment. This paper has supported casual employment by overlooking the disadvantages and views from the labour market, individuals and trade unions. The growth of casual work employment in Australia has benefited both employees and employers. Therefore, it should be encouraged. Bibliography Australian Bureau of Statistics, 2005. Australian Social Trends. Cat. No.4102.0. ABS: Canberra. Available online from: www.abs.gov.au Australian Chamber of Commerce and Industry (ACCI), 2003. Fact, Fiction and Function of Part-time and casual work in the Labour Market. ACCI Review. 106: 5-9 Basso, P. 2003. Modern Times, Ancient Hours: Working Lives in the Twenty-first Century, London, Verso. Brustein, A. H. 2005. Casual Workers and Employee Benefits: Staying Ahead of the Curve. U. PA. 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