This page started as a good news story about the Australian Employment Covenant. And the AEC is still a good news story. Andrew Forrest is to be admired for his attempt to employ indigenous people. But the success of such initiatives is never clear cut......
The first article comes from The Australian and paints a very positive picture.
Engaged in the real economy
From: The Australian
April 13, 2012 12:00AM
AFTER decades of economic separatism, welfare dependency and despair, increasing numbers of Aborigines in remote Australia are playing an important role in the nation's most productive industry - mining.
We congratulate Western Australian mining magnate Andrew Forrest for helping place more than 55,000 Aborigines in jobs since 2008 when he launched the Australian Employment Covenant. Since then he has employed hundreds of Aborigines in his Fortescue Metals Group, where they total about 10 per cent of the workforce. Mr Forrest's lateral thinking and practical leadership have succeeded where many other programs, however well meaning, failed to draw Aborigines from the margins into the mainstream economy.
As indigenous lawyer Noel Pearson said at the outset of the covenant, for every 10 jobs a hundred flowers would bloom in the lives of indigenous children: "We're going to look back on this ... as that moment in the history of the country when government and society made a commitment to people that if you take up the cudgels of responsibility we will guarantee you a job, we will set forth before you a prospect of climbing up in the world - a home, a future for your children, a fair stake in this, your own land."
That vision is beginning to become a reality, as indigenous workers and their families swap Centrelink payments for the generous salaries available in mining and save for their own homes and futures. The transformation, individual by individual, family by family, promises long-term success because it is devoid of all vestiges of welfare and handouts. As Aborigines step up to take responsibility for themselves as they discover job satisfaction and pursue financial security, governments must continue facilitating the trend by improving health, education and housing services.
Unlike previous employment initiatives that have been motivated by paternalism, the trend to employ remote Aborigines in mining is being driven by a more hard-headed motive - the push by mining companies to secure a comparative advantage in a sector where workers are scarce. Kevin McLean, general manager of FMG's Cloudbreak iron ore mine in the Pilbara summed up the reality when he said companies were "screaming out for labour" so "if you can tap into people who already have housing, you are a step ahead." It's a win-win process.
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The True Numbers
For every indigenous jobs initiative it must be possible to measure the results. Surely we can establish how many indigenous applicants there are, how many people are employed and how long they are retained for. And then it should be a matter of looking at which employers are most successful.
Twiggy Forrest of the AEC claims to have placed 10501 indigenous job-seekers and of these 71% were still employed after 6 months. He compares that to the government Job Services program that has a 45% retention rate after only 3 months.
The government then claim that 7043 people have been employed and only 30% of these were retained.
How hard can it be to establish the true figures ?
Forrest claims the government isnt providing the training that they promised. He's already upset the government by protesting against the mining tax. Let's hope politics aren't getting in the way of evaluating or supporting the AEC.
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More jobs at the Ayers Rock Resort
Another good news story. The next question is - what is the retention rate ? Let's hope these are long term.
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