Come June 30, the State Government’s school cleaning workforce reforms will come into practice leaving small businesses to face ruin, reports BRENDAN REES.
Michael (not his real name) is among hundreds of small school cleaning business owners about to be put out of work.
In a major shake-up, Victorian public school cleaning contracts will be wiped from 1 July.
A new model will be introduced where eight zones are created across metropolitan Melbourne and a single cleaning contract will be awarded for all schools in each zone.
For Michael, the policy change means he’ll lose contracts with six schools across Melbourne including in the south-east.
“We’ve just been left out in the cold; our industry has been taken over,” he said. “It has got us gobsmacked from the word go.
He said his son, 25, has worked for the business for the past seven years and was eventually going to take over.
“My daughter has just left school; was about to take a bookkeeping course and join the company – both planning to build the business for their future,” he said. “They are completely disillusioned.”
“We’ve literally been thrown out of business with no compensation whatsoever.
“I’ve got business loans, I’ve got a mortgage, and my income has gone form a million dollar turnover to $170,000,” Michael added.
According to Michael, 58, he will have little choice but to close his business after 11 years with his 26 staff also “wondering what’s going to happen.”
“They all had secure employment, all been paid the right amount, all long term staff. My staff retention is like a 100 per cent, now they are still waiting,” Michael said.
He said his company was worth about half a million dollars in assets with contracts that have now been “wiped off the books, everything gone, and no notification.”
In a statement last week, Minister for Education said the reforms would “provide greater assurance” of school cleaners receiving their legal wages and entitlements.
“There are a range of supports in place to help businesses during his transition,” Mr Merlino said.
Shadow Minister for Small and Medium Sized Enterprises Neale Burgess said Labor’s unfair changes to school cleaning contracts has wiped out over 700 small, mum and dad family businesses with the “stroke of a pen.”
Michael said there’s no way he would be able to apply for the new contracts.
“I would have to increase my financially ability ten-fold in three weeks and that goes against the procurement laws in Victoria.
“We’ve basically been pushed out of the industry with no hope of returning,” he said.
The Victorian Government has indicated regional Victoria would also move to a zoned model following the roll-out in Melbourne.
The Victorian Chamber is also calling for better enforcement of workplace rules.
