ABC Learning slashes 1000 part-time workers

Childcare group ABC Learning will slash 1000 part-time workers to save $26 million in an attempt to curb any future losses threatening the company’s stability.

Childcare group ABC Learning will slash 1000 part-time workers to save $26 million in an attempt to curb any future losses threatening the company’s stability.

The group is undergoing a dramatic restructure process after predicting a pre-tax loss of $437 million for 2007-08, which includes the selling of its US business and an extensive review of local business models.

But the release of its official 2007-08 results have been delayed by auditors from Ernst & Young. The company’s shares, which have dropped from $7 to 54c over the last year, remain suspended from trading.

ABC employs 16,000 full-time workers and 1600 part-time staff, but chief executive Eddy Groves argues the current employment arrangement is inefficient.

“The problem is that the use of agency staff, which is probably about 8% to 10% of our staffing, is bad in a number of ways,” Groves told The Australian.

“It costs us double the amount of money and you don’t get consistence of care for a child because they don’t see the same carer.”

Currently, ABC Learning Centres have a carer-to-child ratio of 1:5, which was described by Parliamentary Secretary for Early Childhood Education and Child Care Maxine McKew this week as, “not best practice”.

ABC Learning is the only childcare group in Australia to have a national agreement with unions, and under their agreement anyone employed working less than 38 hours can have their hours shifted by 30%.

ABC Learning has been though turmoil this year after facing court action with the ACCC, which alleged the childcare group did not comply with 2004 rulings to sell off a number of its child care centres.

Related articles:

• ABC Learning sued by ACCC
• Pressure builds on ABC Learning chief Eddy Groves to step down