The ACTU has appeared before a Parliamentary Inquiry into Migration (14 March) and called for an overhaul of the 457 temporary visa program on the basis that it is being used to reduce wages and job opportunities for Australian workers and that migrant workers are being exploited.
ACTU President Sharan Burrow said:
"In the last year there was a 42% increase in the number of 457 visas issued by the Federal Government and yet less than one in five work sites are being checked to ensure that the correct wages are being paid.
"The Government's new IR laws, in conjunction with the 457 visa program, are being used by employers to hold down the wages of working Australians.
"It is a program that is out of control and should be immediately overhauled, said Ms Burrow.
Key points raised in the ACTU submission to the Inquiry include:
Unchecked growth in 457 visas
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In the last year there was a 42% increase in the number of 457 visas issued by the Federal Government to more than 40,000 and the number of employer sponsors grew by 20% to nearly 10,000.
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This shows there are more than one hundred 457 visas being issued every day.
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However The Government is not properly policing the temporary visa program. In fact, while the number of visas the Government has been issuing has sky-rocketed, its monitoring and compliance efforts have been falling.
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The Government has admitted it conducts site checks on less than one in five employers (18%) (source: Department of Immigration and Multicultural Affairs annual report 2006)
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It is essential the Federal Government conduct more extensive checks on whether Australians can fill local job vacancies before issuing visas and that it also conducts more checks to ensure that migrant workers are not being exploited and the correct wages are being paid.
Impact on local job market
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The long-stay business visas allow overseas workers to stay in Australia for up to four years and are having a major impact on the local job market.
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Too often we are seeing employers rushing to bring in workers from overseas before making sure that local people are first given the opportunity to fill the jobs.
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The other problem is that employers are using overseas workers to avoid their responsibility to train and upgrade the skills of local people.
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This is already having a big effect on the ability of young Australians to get decent, skilled jobs in local areas and especially in regional communities where many of the visas are being issued.
Migrant workers drive down wages
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The minimum salary that employers are required to pay overseas workers are not set high enough to prevent the exploitation of guest workers and in many areas are not high enough to stop employers using the migrant workers to drive down local wages and conditions.
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For example, the average weekly earnings for a skilled tradesperson on a union Collective Agreement are around $51,000 a year (ABS 6306 Nov. 2005) - this is around $10,000 more than the Government's minimum salary level for the skilled visas.
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It is not good enough for the Government to compare its visa salary requirement to the award rate when most skilled people earn well above this with average earnings for tradespeople on a Collective Agreement almost 90% higher than the award.
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The Government also needs to put in place more stringent checks to ensure that employers and labour migration agents are not docking the pay of overseas workers with unreasonable charges for recruitment fees, rent, transport and other costs that they make compulsory.
Download the ACTU Submission Joint Standing Committee on Migration
