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In the end dodgy contract work will win.
It’s simple, the overhead of employing someone legitimately makes it almost impossible to do in most industries/sectors.
In construction it now costs around $80 per hr to put an idiot inside the gate. That’s without site allowances and allowing almost nothing for administration and fixed overhead.
The reporting requirements to all the different authorities are many, and most have onerous penalties for slow reporting and payment. Often payment is required in 14 days …in an industry where standard payment is 45 to 60 days, often not at all…the result is a cash flow nightmare.
I don’t agree it’s always about bosses ripping off workers, a lot of it is about bureaucrats justifying their existence and salaries.
e.g. an associate had 4 workers on “contract” paying them $45 to $60 per hr plus super, plus work cover. He was also providing 4 star accommodation and living away costs (project was about 1.5 hours travel from home). It was on average about 50 to 60 hrs per 5.5 day week.
Not a bad earner imo for some young blokes looking for a chance.
A random audit by Fairwork Australia decided he was in breach of an Enterprise Bargaining Agreement (the project was not an EBA required site)…the upshot was a $30K fine.
Do you think any of them still have a job?
Maybe in some sectors you can still get by with paper ledgers and being a good bloke paying the award, but I think your days are numbered.