Business Daily Media

The Property Pack

Business News

What it's like to be a 'black economy' worker

  • Written by Miriam Vandenberg, Public Health Lecturer (University of Tasmania) and PhD Candidate, Southgate Institute for Health, Society & Equity, Flinders University
What it's like to be a 'black economy' worker

Nina, not her real name, works for a cleaning company that sends her into private homes, in exchange for about $20 per hour, cash-in-hand.

She’s had numerous cash-in-hand jobs over the past few years. She used to work in restaurants where the pay was around $12 per hour. She told me she does it quite simply “for the money”.

Nina is like many other workers who are part of “the black economy” in Australia - businesses and individuals who operate outside the tax and regulatory system. The federal government announced a raft of measures to counter[1] this in the recent budget.

Read more: Precarious employment is rising rapidly among men: new research[2]

But the black economy is more common than we think – how many of us have paid tradies, gardeners or cleaners cash without the exchange of relevant paperwork? For many people this is actually an important source of income.

I recently interviewed 24 black economy workers in South Australia and I found that they come from many different walks of life. They are also from different backgrounds from the highly educated with multiple degrees to those with limited education.

For example, Nina’s life is complex – she has family caring responsibilities, there are household debts and her husband “doesn’t allow her to work elsewhere”, despite her skills in other areas.

I found that some of the people I interviewed turn to the black economy simply to make ends meet, while others are “forced” into this type of work by their employers.

Many feel disempowered and experience multiple barriers to finding formal work that is fair and decent. I wouldn’t say that anyone I have interviewed has become a black economy worker by choice - their stories are rarely straight forward.

I asked Nina about the impact of informal work she does on her health and well-being. She described to me various injuries she has sustained and her concerns about being exposed to toxic cleaning chemicals. There are no required occupational health and safety standards to adhere to, though Nina chooses to wear gloves.

Read more: Workers are actually feeling less insecure in their jobs[3]

But like so many other black economy workers I have interviewed, it’s the psychological effects of this type of work that often come to the fore – the powerlessness and lack of control, exploitation, shame and the stress associated with “being caught”.

Nina told me she feels “like I’m someone from a lower class”.

She said:

I really would like to have a formal job and I’d love to pay tax, as long as I can pay for myself and my family, but unfortunately it is very hard.

Some of the workers I interviewed are battling with mental illness and others are migrants who struggle to have their qualifications recognised.

There are actually many legal activities contributing to the black economy such as people who pick vegetables and fruit in season and those who tutor high school students in chemistry and physics. I interviewed people who work in horticulture, retail, hospitality, arts, construction, tutoring, recycling, mechanical repairing, the beauty industry and childcare.

Some of these industries will be targeted by the government[4] in response to the recommendations[5] of the Black Economy Taskforce. For example, the establishment of a hotline to detect black economy activities and the expansion of reporting requirements and measures aimed at visa holders.

The notion of a “fair go” is a well-recognised Australian mantra, and one that is being used to sell[6] the government’s crackdown on the black economy. Many Australians would agree that everyone should pay their fair share of tax.

But the government’s budget announcements also implicate much smaller businesses as well as individuals, where the flow-on effects are likely to be felt by those who say they have little choice but to work for cash-in-hand.

Building a society where everyone pays their fair share of tax is in all our interests, however, let’s hope it doesn’t have unintended consequences.

Authors: Miriam Vandenberg, Public Health Lecturer (University of Tasmania) and PhD Candidate, Southgate Institute for Health, Society & Equity, Flinders University

Read more http://theconversation.com/what-its-like-to-be-a-black-economy-worker-96537

Business Daily Media Business Development

"Tackling Tough Cleaning Challenges: Ride-On Sweepers to the Rescue"

The idea of cleanliness extends beyond simple aesthetics in the complex fabric of contemporary life to include health, hygiene, and even environmental well-being. The need for cutting-edge...

Business Daily  - avatar Business Daily

Fun Things to Do While Waiting at the Airport

Airports are famously known for having people wait long hours for their departures. Not only are there a bunch of travelers going through flight connections or long layovers, but some pe...

NewsServices.com - avatar NewsServices.com

The 4 Best Indoor Things to Do in Australia on a Rainy Day

Visiting Australia can be such a rollercoaster when it comes to the weather. One might think that because of the beaches and warm environment that it is always sunny, but Australia is al...

NewsServices.com - avatar NewsServices.com



NewsServices.com

Content & Technology Connecting Global Audiences

More Information - Less Opinion