Fed: 120 employment workers lose jobs: Labor

AAP General News (Australia)
12-23-2003
Fed: 120 employment workers lose jobs: Labor

By Peter Jean

CANBERRA, Dec 23 AAP - An employment agency linked to the federal government's Job
Network had collapsed, leaving 120 staff jobless just before Christmas, Labor said today.

Labor workplace relations spokesman Craig Emerson said an administrator was appointed
yesterday to close the operations of Options Community Enterprises.

The community-based job agency specialises in providing employment service to people
with disabilities in Sydney, Brisbane, Melbourne and Newcastle.

Mr Emerson said the staff of Options Community Enterprises had lost their jobs because
of government mismanagement of the Job Network.

"It appears that they have lost their jobs just before Christmas," Mr Emmerson told
reporters in Canberra.

"An administrator, I'm advised, has been called in.

"This is the first of the job network providers to have collapsed, collapsed under
the weight of the government's waste and mismanagement of the Job Network."

A spokesman for Employment Services Minister Mal Brough said the company was a sub-contractor
to Job Network agency Job Futures, and did not have a direct contractual arrangement with
the government.

"The arrangement was between Job Futures and Options, and not with the commonwealth,"

the spokesman said.

Under the Job Network, community and private agencies receive fees from the government
for placing jobseekers in work. A new contract between the government and providers, known
as Job Network 3, began in July.

Labor employment services spokesman Anthony Albanese said more Job Network providers
could close because the financial model underpinning Job Network 3 was not viable.

"Sadly, we are aware that a number of other providers could go the way of Options Community
Enterprise," Mr Albanese told reporters.

Comment from Options Community Enterprises was being sought.

AAP pj/sw/cjh/de

KEYWORD: NETWORK

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