1 00:00:01,120 --> 00:00:05,720 Speaker 1: Let's talk about people working in defense and a cash 2 00:00:05,840 --> 00:00:09,240 Speaker 1: bonus scheme to keep people in the military will be 3 00:00:09,320 --> 00:00:13,240 Speaker 1: expanded as part of a six hundred million dollar workforce 4 00:00:13,240 --> 00:00:16,080 Speaker 1: strategy the federal government is putting up due to announcer 5 00:00:16,120 --> 00:00:20,120 Speaker 1: recruitment retention package in addition to releasing the twenty twenty 6 00:00:20,160 --> 00:00:23,880 Speaker 1: four Defense Workforce Plan. That announcement coming soon from the 7 00:00:23,920 --> 00:00:27,560 Speaker 1: Albanese government. So what it means, and I think this 8 00:00:27,640 --> 00:00:29,960 Speaker 1: has been going on for a while anyway, people in 9 00:00:30,000 --> 00:00:34,640 Speaker 1: defense have been paid, as I understand, at twenty grand 10 00:00:35,240 --> 00:00:42,320 Speaker 1: to stay as a soldier, sub mariner, fighter pilot, whatever, 11 00:00:42,440 --> 00:00:45,479 Speaker 1: whatever the job is that you're doing. Being paid a 12 00:00:45,520 --> 00:00:48,240 Speaker 1: bonus to stay in defense. Is that the way to 13 00:00:48,320 --> 00:00:51,360 Speaker 1: keep people in jobs? Now? I suppose for a defense 14 00:00:51,400 --> 00:00:54,040 Speaker 1: force we want people to be able to jump in 15 00:00:54,080 --> 00:00:57,080 Speaker 1: a plane or sail off into the sunset, or whatever 16 00:00:57,120 --> 00:01:01,200 Speaker 1: the case may be, crawl on through the desert to 17 00:01:01,240 --> 00:01:04,720 Speaker 1: aid the country. Let's talk about this. Michael Schubridge is 18 00:01:04,760 --> 00:01:07,880 Speaker 1: Director of Strategic Analysis Australia. Michael, this is not a 19 00:01:07,920 --> 00:01:09,959 Speaker 1: new scheme, but I gather the amount is going to 20 00:01:09,959 --> 00:01:10,560 Speaker 1: be ramped up. 21 00:01:11,920 --> 00:01:16,440 Speaker 2: No, matthe the amounts being ramped down really fifty. They're 22 00:01:16,480 --> 00:01:20,160 Speaker 2: running what they call a pilot pretention bonus program, and 23 00:01:20,160 --> 00:01:23,360 Speaker 2: they're now extending it, but they're reducing it from fifteen 24 00:01:23,400 --> 00:01:24,679 Speaker 2: thousand to forty thousand. 25 00:01:24,760 --> 00:01:25,399 Speaker 1: So it was fifty. 26 00:01:25,480 --> 00:01:27,039 Speaker 2: They're saying they'll give it to more people. 27 00:01:27,440 --> 00:01:31,880 Speaker 1: Yes, okay, all right, so forty grand to more people. 28 00:01:31,920 --> 00:01:34,520 Speaker 1: So what does that mean? So it was only limited 29 00:01:34,520 --> 00:01:37,119 Speaker 1: to what the specialists they wanted or people they thought 30 00:01:37,120 --> 00:01:37,639 Speaker 1: were vital. 31 00:01:38,920 --> 00:01:43,160 Speaker 2: Yeah, they've been targeting it at junior and middle ranked people, 32 00:01:43,520 --> 00:01:47,080 Speaker 2: and that's probably good because they've got plenty of really 33 00:01:47,120 --> 00:01:50,520 Speaker 2: senior ranked people and they keep making more senior positions 34 00:01:50,840 --> 00:01:55,000 Speaker 2: and those people are paid extraordinarily well. The people with 35 00:01:55,120 --> 00:01:58,320 Speaker 2: the critical skills that they need and experience they need 36 00:01:58,880 --> 00:02:01,920 Speaker 2: are not the most senior people. They're junior and middle 37 00:02:02,000 --> 00:02:04,840 Speaker 2: ranked people, and they've been voting with their feet. They've 38 00:02:04,920 --> 00:02:09,679 Speaker 2: been leaving faster than defense can handle, and that's meant 39 00:02:09,680 --> 00:02:14,560 Speaker 2: they've had critical shortfalls, including things like crews for Navy ships, 40 00:02:14,600 --> 00:02:18,440 Speaker 2: and they've had difficulties putting to sea. 41 00:02:18,639 --> 00:02:22,040 Speaker 1: I suppose to some degree, businesses in general will do this. 42 00:02:22,120 --> 00:02:24,200 Speaker 1: They want to offer the best terms and conditions to 43 00:02:24,240 --> 00:02:26,880 Speaker 1: good people to make them stay well. 44 00:02:27,000 --> 00:02:30,840 Speaker 2: Yes, but there are enormous attractive packages already in place 45 00:02:30,880 --> 00:02:33,799 Speaker 2: for our military, you know, free dental care, free healthcare, 46 00:02:34,160 --> 00:02:37,959 Speaker 2: rental assistance, cheap home loans if they seek to buy 47 00:02:38,000 --> 00:02:42,120 Speaker 2: a house, salry rates that are more than competitive with 48 00:02:42,320 --> 00:02:45,919 Speaker 2: any other kind of government employment. Our military is much 49 00:02:45,960 --> 00:02:50,040 Speaker 2: better paid with much better packages than counterpart militaries like 50 00:02:50,120 --> 00:02:53,040 Speaker 2: say the UK or US. So it's not all about 51 00:02:53,040 --> 00:02:56,320 Speaker 2: the money. Some of it's about the kind of leadership 52 00:02:56,360 --> 00:02:59,600 Speaker 2: that they see in their organization and the lack of 53 00:02:59,600 --> 00:03:03,160 Speaker 2: account nobility that those senior leaders have shown. Whether it's 54 00:03:03,200 --> 00:03:06,480 Speaker 2: things like the Afghan War crimes where it was everybody 55 00:03:06,520 --> 00:03:11,840 Speaker 2: else's problem but the leaders and the veteran suicide Royal Commission. 56 00:03:14,000 --> 00:03:16,440 Speaker 1: I might ask people in general, would you stick around 57 00:03:16,480 --> 00:03:18,320 Speaker 1: if you are going to be paid a forty thousand 58 00:03:18,360 --> 00:03:21,000 Speaker 1: dollars bonus? Is it paid in one lump sum? Michael? 59 00:03:21,000 --> 00:03:22,200 Speaker 1: Do we know how does it work? 60 00:03:22,880 --> 00:03:25,200 Speaker 2: I'm not sure I think it is. And then they 61 00:03:25,240 --> 00:03:28,360 Speaker 2: commit to serving a few more years. But the problem 62 00:03:28,440 --> 00:03:31,960 Speaker 2: is if you've got these people really wanting to leave 63 00:03:32,280 --> 00:03:34,880 Speaker 2: and you need to bribe them to stay, you've got 64 00:03:35,000 --> 00:03:38,960 Speaker 2: deeper problems in your organization. And this they put out 65 00:03:39,000 --> 00:03:42,240 Speaker 2: a new plan thirty six pages of paper, and it 66 00:03:42,320 --> 00:03:47,200 Speaker 2: talks about continuing the transformation of the defense workforce. Well, 67 00:03:47,440 --> 00:03:50,880 Speaker 2: they haven't been transformed it. They've been failing for years 68 00:03:50,880 --> 00:03:53,320 Speaker 2: to grow the numbers and meant to have grown by 69 00:03:53,320 --> 00:03:56,920 Speaker 2: about five thousand people, they've grown by five hundred. So 70 00:03:57,600 --> 00:04:00,880 Speaker 2: they have been failing. But they've been congratulating themselves on 71 00:04:01,040 --> 00:04:04,400 Speaker 2: their transformation, and they're just telling us this is going 72 00:04:04,440 --> 00:04:08,000 Speaker 2: to continue. Well, if you continue a failing path, you're 73 00:04:08,000 --> 00:04:08,920 Speaker 2: going to keep failing. 74 00:04:09,560 --> 00:04:11,600 Speaker 1: It is a mess, isn't that. When we think about 75 00:04:11,640 --> 00:04:14,320 Speaker 1: what's being done and the colins class the story broke 76 00:04:14,360 --> 00:04:18,719 Speaker 1: on the weekend, there's only one operational submarine at the moment. 77 00:04:18,760 --> 00:04:22,159 Speaker 1: The other five are in for repairs and some with 78 00:04:22,320 --> 00:04:27,440 Speaker 1: serious long term issues like corrosion. Orcas is so far off. 79 00:04:27,720 --> 00:04:31,120 Speaker 1: We don't have any mid sort of range strategy, it seems, 80 00:04:31,279 --> 00:04:34,120 Speaker 1: and five hundred the growth of that is just going nowhere. 81 00:04:34,920 --> 00:04:38,640 Speaker 2: Well, think about what having those submarines tied up means 82 00:04:38,640 --> 00:04:41,520 Speaker 2: for the crews. They don't join to sit around and 83 00:04:41,560 --> 00:04:46,120 Speaker 2: play cards. They join to deploy on submarines. So if 84 00:04:46,160 --> 00:04:49,599 Speaker 2: the submarines are broken, we shouldn't be surprised when the 85 00:04:49,600 --> 00:04:53,120 Speaker 2: sailors want to leave. That is the problem that the 86 00:04:53,160 --> 00:04:57,400 Speaker 2: services are facing. And they're not equipping our military with 87 00:04:57,520 --> 00:04:59,960 Speaker 2: the kind of weapons and tools they know they need, 88 00:05:00,279 --> 00:05:04,120 Speaker 2: like armed and unarmed drones. So the bigger question is 89 00:05:04,440 --> 00:05:07,760 Speaker 2: why would you join and why would you stay? And 90 00:05:07,800 --> 00:05:09,560 Speaker 2: a bribe isn't going to change that. 91 00:05:09,880 --> 00:05:13,160 Speaker 1: No, you're right, long term, I suspect that's absolutely correct. 92 00:05:13,200 --> 00:05:17,160 Speaker 1: So what's the thing to do, you know, to attract people. 93 00:05:17,680 --> 00:05:20,480 Speaker 1: I mean it used to be said you join and 94 00:05:20,560 --> 00:05:22,479 Speaker 1: travel the world and all of that as part of 95 00:05:22,520 --> 00:05:26,960 Speaker 1: your experience, but I don't know that's the answer either. 96 00:05:28,000 --> 00:05:32,640 Speaker 2: Well, there was a successful recruiting approach which said the 97 00:05:32,640 --> 00:05:37,000 Speaker 2: Australian military smart people and smart machines. But to do that, 98 00:05:37,080 --> 00:05:39,760 Speaker 2: you have to equip them with the best weapons and 99 00:05:39,880 --> 00:05:44,240 Speaker 2: technology and do that at speed. And everything that the 100 00:05:44,279 --> 00:05:47,560 Speaker 2: Defense Department is doing at the moment is off in 101 00:05:47,720 --> 00:05:51,159 Speaker 2: some distant point in the future, so young people aren't 102 00:05:51,240 --> 00:05:54,200 Speaker 2: seeing that if they join they'll get the best equipment. 103 00:05:54,720 --> 00:05:58,520 Speaker 2: Injecting some cash into armed and unarmed drones, getting them 104 00:05:58,560 --> 00:06:01,240 Speaker 2: into the hands of the military, that's what would excite 105 00:06:01,320 --> 00:06:02,960 Speaker 2: people to join and stay. 106 00:06:03,520 --> 00:06:05,880 Speaker 1: And you're right, I mean the announcements in defense are 107 00:06:05,920 --> 00:06:09,000 Speaker 1: for years ahead. There's usually no money in the forward 108 00:06:09,120 --> 00:06:11,880 Speaker 1: estimates for four years of that anyway, because they're so 109 00:06:12,000 --> 00:06:14,039 Speaker 1: far off all these you know, and Orcas is the 110 00:06:14,080 --> 00:06:16,560 Speaker 1: classic example. We don't get a sub to the late 111 00:06:16,600 --> 00:06:19,320 Speaker 1: twenty thirties at the very earliest, if then, because of 112 00:06:19,440 --> 00:06:22,920 Speaker 1: delays in the UK and other places, and having the 113 00:06:23,000 --> 00:06:24,680 Speaker 1: UK and the US trying to keep up with their 114 00:06:24,720 --> 00:06:27,800 Speaker 1: own demand, let alone supplying Australia with subs, and so 115 00:06:28,360 --> 00:06:31,640 Speaker 1: we're a long long way off and nothing happening in 116 00:06:31,680 --> 00:06:34,200 Speaker 1: the interim. There's no, as I said earlier, no short term, 117 00:06:34,200 --> 00:06:36,599 Speaker 1: mid term strategy, it seems no. 118 00:06:36,839 --> 00:06:40,440 Speaker 2: And that is the people problem. People will not join 119 00:06:40,920 --> 00:06:43,360 Speaker 2: if they think they're not going to be doing useful things. 120 00:06:43,960 --> 00:06:46,440 Speaker 1: Yeah, yep, not just about bonuses and cash for sure. 121 00:06:46,560 --> 00:06:51,440 Speaker 1: Appreciate your insights, Michael. Thank you. Michael Schubridge, Director of 122 00:06:51,480 --> 00:06:53,080 Speaker 1: Strategic Analysis Australia,