Australia’s modern day slave trade

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By Leith van Onselen

Since the 7-Eleven migrant worker scandal broke in 2015, there has been a regular flow of stories emerging about the systemic abuse of Australia’s various migrant worker programs.

The issue culminated last year when the Senate Education and Employment References Committee released a scathing report entitled A National Disgrace: The Exploitation of Temporary Work Visa Holders, which documented the abuses of Australia’s temporary visa system for foreign workers.

The most damning assessments from the Committee were regarding Australia’s Working Holiday Maker and student visa holders, who were “consistently reported to suffer widespread exploitation in the Australian workforce”.

Last night, ABC 7.30 Report ran another disturbing report on the modern day slavery occurring across Australia:

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LEIGH SALES, PRESENTER: You might assume that in a free country like Australia, there’s no such thing as slavery, but it depends how you define it.

Modern slaves may not be in chains or working in dingy factories but slavery is alive and well in our community often hiding in plain sight and there’s a bipartisan move in Australia’s Federal Parliament to address it…

LINDA REYNOLDS, LIBERAL SENATOR: Slaves are hidden in plain sight, right across Australia, so whether it’s out on a farm, you know, in regional Australia.

LISA SINGH, LABOR SENATOR: It could be domestic workers, it could be forced labour, of course it could be women and young girls in the sex industry.

LINDA REYNOLDS: Whether it’s down at your local shopping centre, the nail bar, the Thai massage place, where you get our car washed, how do you really know who those workers actually are and the conditions under which they’re here.

ANDREW PROBYN: Some of their passports taken from them if they’re paid it might be horribly inadequate or significantly docked.

Others aren’t paid at all…

JENNY STANGER, SALVATION ARMY: I don’t think we have really scratched the surface of what’s out there. I don’t know that we’ve been willing to actually acknowledge the scale and scope of what’s probably out there in the community…

7.30 REPORT EXCERPT: This is a massive black economy which is a huge part of Australia’s underground economy and, of course, some of these workers are part of industry, the food industries, that are supplying some of the biggest supermarkets in Australia…

LINDA REYNOLDS: It is hidden like domestic violence in Australia, it’s currently hidden within plain sight.

ANDREW PROBYN: Liberal Senator Linda Reynolds, a member of the parliamentary inquiry, says many victims are simply misidentified by authorities.

LINDA REYNOLDS: There have been a number of recent cases in Australia, for example in my own home state of Western Australia, where there have been gangs of illegal workers…

We don’t want to see slavery in our country yet it is occurring and we don’t seem of the legislative frameworks to deal with it…

ANDREW PROBYN: Labor Senator Lisa Singh has also been horrified to hear the extent of worker exploitation uncovered by the committee.

LISA SINGH: I think the UK legislation is a really good benchmark to follow. It’s obviously still relatively new, coming into effect in 2015 but I think we shouldn’t stop there…

Elsewhere, ABC News reports that the Labor Party wants to force big companies to report on slavery within their supply chains with fines for those failing to comply, which seems to have broad support:

Opposition Leader Bill Shorten has joined the push for an Anti-Slavery Commissioner and legislation to force businesses to check on practices in their entire supply chain.

Labor’s Justice spokeswoman Clare O’Neil said many of the goods and services that Australians use every day are produced by people in slavery.

She said in Australia there are 4,300 people trapped by criminal syndicates who force them into prostitution or other work…

Labor’s proposal was backed by the Business Council, the union movement and the Salvation Army.

The law it calls for would force big companies to make sure that no business either directly, or indirectly, engaged in slavery.

A similar law exists in the United Kingdom, but Mr Shorten says his plan goes further because it would force both companies to report on their supply chain and apply penalties if they failed to do it.

Liberal backbencher Chris Crewther has pointed out the Government is already working on a plan for modern slavery legislation and the issue is being examined by a parliamentary committee…

Adam Carrel from the Business Council said… modern slavery was often thought of as “sweat-shop labour” but he said the most common form was the exploitation of migrant workers by brokers.

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The parliamentary committee examining slavery is expected to report late this year, with anti-slavery legislation to be enacted next year.

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.