The federal government has not re-awarded the Vocational Training and Employment Centres (VTEC) contract to Habitat Personnel, meaning the Nowra-based community employment service has been forced to wind up after operating for 20 years.
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Staff at the office are remaining in place until January 25 to provide voluntary assistance to clients.
It is understood six staff in Nowra have lost their jobs, with a further six in Canberra also out of work.
Nicole Moore, who was managing director until Monday, said in an email, “I am sad to have to inform our valued employer network that Habitat is now closed. The Department of Prime Minister and Cabinet (PM&C) has not re-awarded our VTEC contract, which expires at the end of this month.
“It is not accurate to say that we have ‘chosen’ to wind up, but the responsible and prudent thing to do is to go into liquidation.
“PM&C has declined to tell us who is getting the contract so we are unable to provide any advice on future arrangements. I can only suggest if you have questions to contact PM&C on 1800 079 098 or at vtec@pmc.gov.au. Volunteers will be in our offices providing limited client service until Thursday 25th January 2018.
“Thank you again for being part of the journey. It’s a journey that deserves to be remembered by the many positives along the way, rather than how it’s ended.”
The VTEC program is based on the GenerationOne employment model developed by mining magnate Andrew ‘Twiggy’ Forrest. It rewards businesses which keep Indigenous workers employed.
In the Shoalhaven, it has worked with construction labour hire company Workforce Extensions and seen Indigenous workers gain employment at projects such as the South Coast Correctional Centre expansion, the Burrill Lake bridge upgrade and the helicopter training school construction at HMAS Albatross.
Six Indigenous workers were found employment at the jail project and two at the Burrill Lake works. Their jobs are not under threat.
Workforce Extensions managing director Ross Thompson said he was extremely disappointed by the Department of Prime and Cabinet’s decision not to re-award the VTEC contract.
“I think it is wrong to have taken the contract off a community organisation. It’s going to have a massive effect on my business,” Mr Thompson said.
“I’ve invested a lot of time and effort in ensuring we have at least 15 per cent of our workforce made up of Indigenous workers.
“Through Habitat I have built up important relationships that have helped get Indigenous workers into jobs. Now, we are going to have to do that all over again with a new provider.”
The Department of Prime Minister and Cabinet and Gilmore MP Ann Sudmalis have both been approached for comment.
