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Dick Davies on Contracts:
Your Thoughts and Opinions


After reading our recent post on the plight of "Tom" and his dispute with the Department of Education, Employment and Workplace Relations, long-time industry observer and management consultant Dick Davies wrote a short article for us on the possibility of contractors cutting out the recruitment middle men and organising themselves to do it instead. Responses to that story appear below.


[Do you have any thoughts or opinions about Dick's suggestions? Please read his posting and if you would like to contribute to this discussion, please e-mail your thoughts to us at: dickdavies@contractworld.com.au.]

On 26 September August 2009, an ICA member wrote:
    Dick
    Your observations are correct and insightful. The problem is that organisations (private and public sector) only want to engage with labour hire firms. There are several examples of ICs banding together to tout for work but they are generally ignored when it is discovered that they are really a firm of professionals. This is a bizarre situation as many organisations will form agreements with panels of lawyers, accountants and other consultants but when it comes to independent contractor they only deal with recruitment/labour hire firms. The public sector, for example, will engage a labour hire firm that then has the responsibility of locating a resource. In some way the APS sees the engagement of an IC as a temporary employee yet the ATO has legislation to try and prevent this and the courts have tests that make operating in such a fashion difficult. The end result is that ICs find themselves in a bizarre situation of wanting to be treated as independent, deliverable based professionals and some sort of quasi employee.... The reality is that many organisations rely upon HR departments to engage resources and these HR departments can only seem to deal with HR-like firms. It is frustrating.


On 24 September August 2009, Serg wrote:
    This is the first I have replied to any email. Been a contractor for 15 years. Who is listening that is really required (Governement, Employers, etc) are taking any notice off these things? Tax man screws contractors, Government screws contractors, and unfortunately laws don't protect any contractor either. Can you highlight any major improvements for contractors over the last 10 years?

    Kind regards
    Serg.


On 26 September August 2009, ICA Executive Director Ken Phillips replied:
    Serg
    We think we have seen some improvements. The tax laws do give some equal treatment to independent contractors and the ATO has a very improved approach to dealing with us. But of course who wants to pay tax?!

    The Independent Contractors Act does offer protection from unfair contracts but taking legal action is always difficult.

    Our big emphasis now is on the culture of behaviour by government and big business to us little guys. They need to lift their game and respect contracts. It's a long campaign and we want to work with government and big business to achieve good results.

    Rgds. Ken


[If you would like to contribute to the discussion, please e-mail your thoughts to us at: dickdavies@contractworld.com.au.]