Systemic exploitation of foreign workers continues

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By Leith van Onselen

Ever 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 was highlighted in all of its hideous glory 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 visa system for foreign workers.

Despite this Senate report being released last year, there has so far been zero action from the federal government, with widespread rorting of Australia’s visa program continuing unabated.

Indeed, the Turnbull government recently put its bill to prevent worker exploitation on the backburner, delaying a vote – a full two years after the 7-Eleven wage scandal was exposed – amid an extensive behind-the-scenes lobbying campaign by the Franchise Council of Australia, led by former Liberal minister Bruce Billson, aimed at watering down the legislation.

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As reported in Fairfax yesterday,Fair Work Ombudsman Natalie James has revealed that people on visas continue to be exploited at an alarming rate, particularly those with limited English-language skills:

Of all requests for assistance from the ombudsman in 2016/17, 18 per cent came from workers on visas – an increase on the previous year and significantly disproportionate to the total number of workers on visas.

Half the cases that made it to court involved a visa worker, Ms James told Fairfax Media.

“It is pretty outrageous and it’s sad we are still seeing examples of vulnerable visa holders being exploited in this way,” she said…

Ms James noted “for a lot of workers it’s very hard to come forward, particularly where they don’t have very strong English language skills”.

Sadly, there are now entire business lines, firms and sectors whose business models rely heavily on the systematic undermining of wages and, worse, running virtual slave labour.

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We have seen this in pizzas, convenience stores, agriculture, building, mining, accounting, IT, engineering, education, transport, the gig economy and no doubt it is even more widespread.

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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.