SA passes laws to prevent migrant worker exploitation

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By Leith van Onselen

Ever since the 7-Eleven migrant worker scandal first broke in 2015, there has been almost weekly reports showing the systemic abuse of Australia’s various migrant worker programs and visa system.

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.

Back in August, Fair Work Ombudsman (FWO), Natalie James, told Fairfax that people on visas continue to be exploited at an alarming rate, particularly those with limited English-language skills. It was also revealed that foreign workers are involved in more than three-quarters of legal cases initiated by the FWO against unscrupulous employers.

While the federal government continues to sit on its hands, and refuses to close the rorts, South Australia has taken action, passing laws in state parliament that would penalise those that exploit migrant workers. From The ABC:

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People running labour hire companies that exploit workers and dodge tax will face up to three years in jail under laws that have passed South Australia’s Parliament.

The laws were sparked by a Four Corners investigation that found extreme exploitation and slave-like conditions in the food production industry, mostly affecting workers employed by labour hire companies.

The legislation means companies operating in South Australia must be licensed and will face tougher penalties, including jail time, if they flout the law.

Employment Minister Kyam Maher told Parliament unscrupulous operators were underpaying workers and avoiding tax, workers compensation payments and superannuation…

National Union of Workers’ general secretary Tim Kennedy welcomed the laws, but said there needed to be national reform.

“We would urge the Federal Government to reconsider its opposition to regulating labour hire nationally,” he said.

“Failing a commitment from the Turnbull Government to fix these matters, it is heartening to see governments such as the Weatherill Government stepping up to the plate and making certain that workers aren’t exploited.”

Similar laws have already passed in Queensland, and a bill is currently before the Victorian Government.

True to form, Do-Nothing Malcolm has been shown up by his state counterparts.

The Senate report on the exploitation of temporary foreign workers was released in March 2016, and yet 20 months later there has been minimal action from the federal Coalition, with widespread rorting of Australia’s visa program continuing unabated.

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Little wonder that Australian wages growth is so low when employers right across the country can so easily grab migrant workers under slave-like conditions instead of training and employing locals.

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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.