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Merger danger for childrenDate: 09 September 2004
" Today's announcement leaves Eddie Groves dominating the private childcare market," Jo-anne Schofield, LHMU Child Care Union Assistant National Secretary said today. " In Western Australia he owns more than 90 per cent of the private child care industry, in Queensland more than 60% of the private industry, and in most other states he operates at least half of the private childcare industry. ACC investigation" We will ask the ACCC whether he has an unfair control over the private childcare market and whether this takeover threatens choice among private providers," Jo-anne Schofield said.Parents losing control" Parents are losing control over choice of childcare centre, and they are losing control over the quality of service provided for their children." Our union, with the ACTU, this week launched a national phone-in for members of the community, and workers in this industry, to air their concerns about childcare issues. " We want people to ring 1300 362 223 to give us information about the childcare crisis which we can collate and take to the politicians, to get commitments before the Federal election. Taxpayer concerns" We believe the taxpayer should be concerned because they have helped create Eddie Groves as the flamboyant corporate player who last year was pushed onto Australia's Top 200 Rich List
Eddie Groves' profits" Eddie Groves, who is estimated to be worth $175 million, is probably as well known for his ownership of the Brisbane Bullets basketball team as for his ownership of this corporate childcare empire." ABC profits last financial year were up 77% to over $20 million dollars. A lot of this profit was raked in from taxpayers who gave more than $35 million in the last quarter to run his centres. " Peppercorn, one of the companies he has just taken over, last year recorded a profit increase of over 180% to $116 million. Not worker friendly" Our members are also worried, and very concerned, because they have not found Eddie Groves to be worker friendly." Mr Groves' ABC Development Learning has been one of the key players fighting the childcare workers' work value claims, now before the Australian Industrial Relations Commission. " The work value will deliver decency and justice to people who earn between $12 to $14.50 per hour as qualified workers. " Even today we've had frantic calls, throughout the day, from childcare workers at Peppercorn - the main private childcare company being gobbled up by ABC. " They report they are being forced into signing individual employment agreements (AWAs) if they want to continue working at their centres. " Individual employment agreements inevitably undercut Award wages and conditions. " We're telling childcare workers not to sign. There is a shortage of good, quality childcare workers. " Eddie Groves should not get their valuable work on the cheap. Eddie Groves can sit down and decently bargain a good outcome for his workforce. " Our members wish Mr Groves would lavish as much attention on them as he does on his other favourite past-time - sponsoring the Brisbane Bullets. The LHMU proudly represents around 130,000 hard working women and men throughout AustraliaFor further comment and interviews: Jo-anne Schofield, LHMU Assistant National Secretary, 02 8204 7231 or 042 524 2684 Sue Bellino, LHMU Child Care Union National Industrial officer 02 8204 7212 or 040 018 8825
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