VIC Government announces new labour hire watch dog

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By Leith van Onselen

The Victorian Government has announced a new licensing commissioner to police the labour hire sector amid numerous reports of exploitation:

The Herald Sun can reveal Australian Manufacturing Workers’ Union state secretary Steve Dargavel will ­become the state’s first labour hire licensing commissioner…

Mr Dargavel will head up the Labour Hire Licensing Authority, ­created by the government in the wake of an ­inquiry that ­uncovered widespread abuse and exploitation of workers.

The authority will register all labour hire services, which must be run by “fit and proper persons” and comply with workplace laws.

Those that operate without licences will be punished with heavy fines.

Mr Dargavel will also oversee a team of inspectors to ­investigate reports of noncompliance…

This is a good move. Recall what the parliamentary inquiry into establishing a modern slavery act said:

Committee view

9.146 The Committee recognises that recent Commonwealth, state and territory inquiries have highlighted the role that unscrupulous labour hire companies play in contributing to the exploitation of migrant workers…

9.150 While the Committee acknowledges that a labour licensing scheme is no ‘silver bullet’ to stopping exploitation and modern slavery, it considers that taken together with the Australian Government’s existing measures and the recommendations of this report, it will assist to improve protections for migrant workers…

Recommendation 48

9.152 The Committee recommends that the Australian Government establish a uniform national labour hire licensing scheme, consistent with recommendations by the Parliamentary Joint Committee on Law Enforcement, the Joint Standing Committee on Migration and the Senate Education and Employment References Committee. This licensing scheme should incorporate random audits and unannounced inspections of labour hire firms to ensure compliance.

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Sadly, as we know, SA has just abolished these same protections at the prompting of the horribly conflicted Migration Council Chair Innes Willox as it prepares for for its new crush-loading. 

unconventionaleconomist@hotmail.com

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.