Finally, franchise visa rorters bill passes parliament

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By Leith van Onselen

Two years after the 7-Eleven migrant worker scandal first broke, and the veritable conga-line of stories emerging about the systemic abuse of Australia’s various migrant worker programs, the bill to prevent worker exploitation has finally been passed by parliament. From The Canberra Times:

Employers, particularly franchise chains, face stiff new penalties and a beefed up watchdog after reforms to protect vulnerable workers passed the Senate on Monday night…

Minister for Employment Michaelia Cash said the government’s Fair Work Amendment (Protecting Vulnerable Workers) Bill 2017 would protect workers from unscrupulous employers.

“Our bill not only supports vulnerable workers, but also ensures businesses are operating on a level playing field,” she said.

The bill significantly boosts fines for serious breaches of workplace laws that will catch employers who force employees to pay back their wages in cash.

The bill also makes franchisors and holding companies culpable for breaches of the Fair Work Act if they are found responsible…

Labor claimed credit for ensuring passage of the new protections for workers including its amendments to limit the Fair Work Ombudsman’s new co-ercive powers…

Labor also succeeded in getting through its amendment to reverse the onus of proof in claims for unpaid wages where the employer has not produced wage slips or employment records…

About bloody time. With the non-stop flow of reports on the systemic abuse of Australia’s various migrant worker programs, the Government could not afford to ignore this issue for much longer. It simply had to take action, despite the extensive behind-the-scenes lobbying campaign by the Franchise Council of Australia, led by former Liberal Small Business Minister Bruce Billson.

While the passage of this bill is a positive step, it will take some time to turn this sordid ship around.

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The sad reality is that there are now entire business lines, firms and sectors across Australia whose business models rely heavily on the systematic undermining of wages and, worse, running virtual slave labour.

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

The whole system is ripe for reform.

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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.