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Overarching Memorandum of Understanding on Job Compacts

Date: 19 November 2007
Date To: 18 November 2011
Sub Category:Memorandum of Understanding
State/Country:New South Wales, Australia
Subject Matter: | Employment and Training
Summary Information:
The Overarching Memorandum of Understanding on Job Compacts ('the MoU') is an agreement between the NSW Government, the NSW Business Chamber, the Local Government Association of NSW, the Shires Association of NSW and Unions NSW. It was launched by the NSW Minister for Aboriginal Affairs on 19 November 2007.

The MoU forms the basis for collaborative action between key government, Aboriginal and industry groups aimed at improving Aboriginal participation in the labour market through the development of regional and industry job compacts.

Detailed Information:
What is a 'Job Compact'?

According to the definition in the Two Ways Together Regional Action Plan (2007, 3), 'Job Compacts are agreements developed within a location or industry to generate local job opportunities for Aboriginal people.'


The purpose of the Overarching Memorandum of Understanding on Job Compacts ('the MoU') is to establish partnerships between key agencies for the development and implementation of job compacts. The job compacts are a measure aimed at overcoming 'the barriers restricting Aboriginal people from accessing employment opportunities, and directly assist[ing] and facilitat[ing] the employment of Aboriginal people locally' (MoU, 1).

The guiding principles of advancing job compacts acknowledge the entrenched disadvantage facing Aboriginal people, collaboration on policy issues, information-sharing and a practical, solution-oriented focus.


The MoU will operate for four years or until otherwise agreed by the participants in writing.

Regional job compacts will focus on geographical areas with high Aboriginal populations, identifying means by which employment levels of local Aboriginal people could be increased. Industry job compacts will seek to facilitate greater employment of Aboriginal people in targeted industries, with the construction industry providing one initial focus. These may be negotiated on a regional or state-wide level by industry groups or individual corporations.


The NSW Government undertakes to:

  • manage and monitor the MoU, including coordination of negotiations to establish and monitor regional job compacts, and participation in industry job compact negotiations;
  • work in accordance with the structures developed in the Two Ways Together 10-year Aboriginal Affairs plan and the Inter-Governmental Aboriginal Affairs Group;
  • target initiatives which link school leavers to employment opportunities in locations with job compacts;
  • maximise opportunities for Aboriginal people in government procurement;
  • take measures to develop the business skills of Aboriginal people, especially in industries where sustainable, long-term employment is possible;
  • foster the participation of local governments in job compacts; and,
  • support participating businesses, for example through the provision of payroll tax rebates where applicable.

    The NSW Aboriginal Land council will:

  • advocate the interests of Aboriginal people in the development of job compacts; and,
  • distribute information about job compacts through local Aboriginal Land Councils.

    The NSW Business Chamber will:

  • identify factors and means of overcoming barriers for businesses in increasing the employment levels of Aboriginal people;
  • advocate the benefits of job compacts to members; and,
  • harness the participation of businesses in job compacts.

    The Local Government and Shires Association of NSW will:

  • identify factors and means to overcoming barriers in increasing the employment levels of Aboriginal people; and,
  • encourage the involvement of local government in job compacts.

    Unions NSW will:

  • promote the participation of union groups in job compacts.

    Review and evaluation

    The MoU will be reviewed after 12 months, and an annual report will be provided to all participants. Success will be measured by the number of job compacts negotiated and the number of organisations engaged, as well as by the individual outcomes of each negotiated job compact. The effectiveness of job compacts in improving employment outcomes for Aboriginal people will be evaluated after two years of the MoU's operation (in 2009).
  • Outcomes:
    On 4 March 2008, the NSW Minister for Aboriginal Affairs announced in Parliament that job compacts were being developed across the state as a strategic priority for boosting Aboriginal employment. He announced that 12 job compacts were being developed in regional and urban areas with large Aboriginal populations, including Blacktown, Mount Druitt, Campbelltown, Macarthur, the Hunter, Newcastle, Wollongong, the Illawarra, Wagga Wagga, Dubbo, Eastern Sydney, Tweed Heads, Tamworth, Redfern and Murdi Paaki. In the 2006-07 financial year, $183,000 was committed to engaging three specialist organisations to work with the government to develop job compacts. The Minister reported that a job compact in Redfern had been very successful and had led to the creation of over 200 Indigenous construction jobs.

    Related Entries

  • State of New South Wales - Signatory
  • New South Wales Aboriginal Land Council - Signatory
  • Local Government and Shires Associations of NSW - Signatory
  • New South Wales Business Chamber - Signatory
  • Unions NSW - Signatory

  • References

    New South Wales Government (c2001) Two Ways Together - Partnerships: A New Way of Doing Business with Aboriginal People


    Memorandum of Understanding

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