Only in the public service

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ScreenHunter_2054 Apr. 15 09.31

By Leith van Onselen

The Canberra Times has published an article today on the growing number of federal public servants that have been classified as “excess” to requirement and are being paid to effectively turn up to work and do nothing:

More than 400 federal public servants are languishing in employment limbo after they lost their jobs but were kept on the government payroll…

The public service’s ”redeployment register”, which has grown three-fold since late last year, now holds the names of 427 departmental staffers cast into bureaucratic purgatory by the wave of cuts sweeping the federal government.

A worker can join the registry, which covers all Australian Public Service departments and agencies, if their department has declared their job excess but the employee refuses to take a redundancy.

Under the government’s public service employment policies, there are no provisions to force a severance agreement on a public servant…

It is unclear what the hundreds of ”displaced persons” are doing when they go to work each day because individual departments are left to manage their own excess workers with no input from the central workplace authority.

There are obvious parallels here with what happened when the Howard Government was first elected in 1996 and it began cutting spending and jobs across public sector agencies.
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Those public servants with the most experience (and the largest “packages” on offer) took voluntary redundancies, only to then be re-hired as consultants and contractors.
Meanwhile, employees with less experience (and smaller redundancy packages offered) were given an incentive to stick around doing nothing, get paid, and wait for a better offer.

Nice work if you can get it. Not so nice for taxpayers, though.

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.