Thursday, 28 Nov 2024

Warning over Centrelink call centres as Services Australia slashes contracts

Warning over Centrelink call centres as Services Australia slashes contracts


Warning over Centrelink call centres as Services Australia slashes contracts
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Services Australia has embarked on a massive shake-up of its call centre operations, slashing the work it sends to labour hire firms as it approaches one of its busiest periods of the year.

The move is expected to result in job losses, and insiders and the union warned it could mean customers would wait longer for Centrelink services.

The decision, conveyed to the firms last Friday, begins as soon as 1 July.

Serco and Datacom confirmed the reduction in workload after inquiries from Guardian Australia on Friday. It is understood the decision applies to all four firms.

The spokesperson said the company was still assessing what the change would mean for the business and its staff.

Stunned insiders said it was not clear Services Australia had a transition plan in place for the big and sudden shake-up, which comes ahead of a busy period for the agency.

One source not authorised to speak publicly questioned whether the agency had enough staff directly employed to handle the extra resourcing requirements, given the labour hire firms have carried a substantial portion of the workload.

They claimed it could lead to a blowout in call waiting times and delays to the processing of documents uploaded by welfare recipients dealing with Centrelink when they apply for benefits.

Probe declined to comment.

The new minister for government services, Bill Shorten, referred questions to the agency.

Tender documents indicate Datacom has been contracted by Services Australia since 2018 for a total spend of $265m.

Serco has received about $280m for the taxpayer since 2017, while Concentrix has also earned about $250m since mid-2018. Probe, previously known as Stellar, has been paid $220m for labour hire services since the middle of 2018.

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