Neoliberal policies of industrial relations decentralisation and privatisation have transformed the economic landscape of Australia in the last 20 years. The primary objective of these policies has been to enhance wealth and prosperity by improving productivity and flexibility of the workforce and competition and accountability in the market. Yet the evidence suggests that precarious workers are not benefiting from this increased prosperity, indeed they suffer by comparison with all other workers. Cleaners are a subset of precarious workers who have been hard hit by the dual impacts of labour market decentralisation and privatisation. This study finds quantitative evidence of an increasing gap in earnings between cleaners and other workers in Australia since the onset of workplace relations decentralisation and the proliferation of privatisation in the mid 1990s. We locate our argument in recent debates about the nature of variegated neoliberalism, the emergence of the networked economy, and the implications of these developments for the nature of work and employment.

Government contracts for services typically include terms requiring contractors to comply with minimum labour standards laws. Procurement contract clauses specify reporting procedures and sanctions for non-compliance, implying that government contracting agencies will monitor and enforce minimum labour standards within contract performance management. In this article, the case of school cleaners employed under New South Wales government contracts between 2010 and 2011 is the vehicle for exploring the effectiveness of these protective clauses. We find that the inclusion of these protective clauses in procurement contracts is unnecessary in the Australian context, and any expectations that government contracting agencies will monitor and enforce labour standards are misleading. At best, the clauses are rhetoric, and at worst, they are a distraction for parties with enforcement powers.