CPSU urges govt consider 'greater opportunities' to convert more labour hire to permanent public servants

Tuesday night's 2023 federal budget revealed the bureaucracy would grow by its single biggest year-on-year increase in at least 15 years in a move to build up in-house capability.

Nearly a third of the 10,800 roles will be made up of former labour hire staff after they are converted to permanent public servants.

The Community Public Sector Union welcomed the announcement as "good news" but added more could be done to get people out of insecure work and into ongoing positions.

Over the weekend, the federal government's audit into the public service revealed a "shadow workforce" of external labour hire workers had reached 53,900 during 2021-22 at a cost of $20.8 billion.

National secretary Melissa Donnelly said the changes were a good start but signalled the union would push for more.

"We think there are greater opportunities ... for conversion with the shadow workforce," she told The Canberra Times on Wednesday.

"It's good that the government is heading in the right direction on this but we do think there are ongoing opportunities.

"There is a lot that can be done that will be better for workers, and it will be better for services and it will be better for the government's model."

The federal budget figures show Defence will gain an additional 2610 spots across public servants and military personnel.

Within the Climate Change portfolio, the department will get a bump of more than 1400 staff members while the Bureau of Meteorology and the Murray-Darling Basin Authority each gain more than 100.

READ MORE:

However, Services Australia's staffing levels will drop nearly 2000 to 26,692 staff members and experience a $0.4 billion decrease in overall funding.

Public Service Minister Katy Gallagher earlier said the budget was "making sure" key service delivery agencies, including Services Australia, were being adequately funded.

Ms Donnelly said the news was "disappointing" given the agency was under "significant pressure".

Permanent public service numbers needed to increase further as labour hire and contractor budgets are stripped back, she added.

"It's really important as we move away from the reliance on labour hire and contractors and consultants that there is a matching increase in the public service," Ms Donnelly said.

"Because that's what is going to deliver the efficiency, that's what's going to deliver a more effective public services and policy.

'We do need to make sure that happens hand in glove so services can be improved as we make that transition."

Senator Gallagher said the May budget of the crackdown on consultants and contractors and conversion of 3300 labour hire staff into permanent staff in the 2023-24 financial year was "just the beginning".

"It's the conversion of expensive labour hire or consulting arrangements, and basically transferring them into public servants," the minister said.

"So there's about 3300 of that 10,000 relate to the conversions and that's just the beginning. We've just started, because we've now got a level on what the arrangements are.

"That wasn't known when we came in, we've done the audit, we know how many, you know, external providers or external labour exist, and now we're looking at where we can convert them and we're actually generating savings by doing that, because it's an expensive way to employ people."

We've made it a whole lot easier for you to have your say. Our new comment platform requires only one log-in to access articles and to join the discussion on The Canberra Times website. Find out how to register so you can enjoy civil, friendly and engaging discussions. See our moderation policy here.