Dec 23, 2003

1st job network provider collapses

1st Job Network provider collapses

MEDIA RELEASE: Anthony Albanese – 23 December 2003

Options Community Enterprise has become the first job network provider forced into appointing an administrator to organise the closing of its Job Network operations.

Options Community Enterprise employed over 120 people across nine sites nationally.

Springhill -Brisbane

South Yarra – Melbourne

Newcastle

Katoomba

Parramatta

Darlinghurst

Dee Why

Chatswood

Strathfield

The Job Network provider which specialise in helping people with disabilities find work, was a top performer under the Job Network 2 contract. It received the highest rating possible for performance – 5 stars from the Government.

However under the new Job Network system the 27 year old organisation which evolved has been forced to close their doors because the Government’s financial model underpinning Job Network Mark 3 is not viable.

The closure of this major provider comes despite the Government $2.1 billion bail out in August this year.

The lost of over 120 jobs days before Christmas is a direct result of Minister Brough‘s mishandling of the transition to Job Network 3 on July 1.

Since well before its introduction, Job Network providers and the Opposition have been warning the Minister that his Job Network 3 model is flawed and that without major changes to the payment structure, many job network providers faced the prospect of financial ruin.

Sadly we are aware that a number of other providers could go the way of Options Community Enterprise.

Clearly job network providers and job seekers face a very bleak new year.