Fair Work mass raids poor old Melbourne cafes

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Via The Australian:

Fair Work inspectors are conducting surprise visits at dozens of restaurants and cafes in popular Melbourne city dining strips today following concern about the widespread underpayment of workers.

Inspectors are currently in Degraves Street and Hardware Lane, speaking to business owners, managers and employees to check that workers are being paid correctly.

At least 40 businesses face audits and inspectors are also examining their employment records for compliance with workplace laws.

OK, so we know there is rife underpayment in this sector and fair enough that it is brought to justice.

However, while Fair Work is doing it, we also today have the Summo Government doing the complete opposite. From The ABC:

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The Government has opened a gateway for foreigners with basic farm or hospitality skills to move permanently to Australia on a work visa.

New regional migration agreements for the Northern Territory and south-west Victoria will lower the criteria for skills, language and income for migrant workers.

And they will provide a pathway to permanent residency to these workers that previously did not exist.

However the Government is demanding migrants commit to living in these regions for at least three years before a permanent residency pathway is available…

Manuela Seiberth, a migration agent based in Darwin, said the new offer of permanent residency was “huge”…

Typically, employment visas must be for workers with competent English and pay of at least $53,900 per year.

However, under the previous Northern Territory DAMA, a visa may be approved for a baker, barista or hairdresser with language or income less than these thresholds.

Under the new DAMA these workers will likely be given a chance to move to Australia permanently.

The ridiculously low pay floor of $53,900 for ‘skilled’ migrants will be lowered even further, as will English language proficiency. Sure, these workers will have to spend three or four years in these regions, but after they have qualified for permanent residency they will very likely just move to the big cities, just like all the other migrants.

Note that these workers will very much be allowed to work in cafes and restaurants.

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What is the point of Fair Work inspectors picking off a few city businesses when the system itself is encouraging them to tap cheap foreign labour? It reeks of tokenism.

The issue is the intake of foreign visa holders and the rules around them. Until that is addressed all businesses will consider the underemployment of workers fair game. They’ll simply see it as the need to compete.

Fair Work should raid Scummo’s office.

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.