Subway “skilled” Chinese sandwich maker underpaid

Via Yahoo comes the great Australian economy:

The former owner of two Subway franchises in Sydney has been penalised $65,000 after underpaying a former employee by $16,345.

The employee working at outlets at Artarmon and Stanmore was paid just $14-$14.50 an hour, between October 2014 and April 2016.

That’s well below the minimum rate of $18.

The Chinese national worker was also entitled to a casual loading payment and penalty rates of up to $52.22 on public holidays.

The Fair Work Ombudsman also found the worker hadn’t been granted a special clothing allowance, and the employers had failed to meet record-keeping and pay slip requirements.

Danmin Zhang, who formerly operated the outlets was penalised $9,255 by the Fair Work Ombudsman, with the company she owns with her husband, G & Z United, penalised an additional $56,183.

The Fair Work Ombudsman investigation came after the worker – who was pack-paid in 2017 – lodged a request for assistance.

The Fair Work Ombudsman also emphasised that Zhang is no longer involved with the two Subway restaurants.

“It is unlawful for employers to pay their employees low, flat rates that undercut minimum Award wage rates. This franchisee paid their worker a flat rate that was $4 below the lawful rate, and now faces paying a $65,000 penalty from the Court,” Fair Work Ombudsman Sandra Parker said today.

“The penalty should send a message to fast food businesses that compliance in the workplace is not an option – it’s the law. Every worker in Australia has the same workplace rights and we encourage anyone with concerns to contact the Fair Work Ombudsman.”

It comes just days after fashion startup, Her Fashion Box was fined $329,113 after underpaying staff by illegally classifying them as interns.

And a little more:

The casual worker, who was in Australia on a skilled visa, was paid unlawful flat rates of $14 to $14.50 an hour for 18 months.

There it is in all of its glory:

  • migrants ripping off migrants;
  • absurdly low level “skilled visa” for a sandwich maker;
  • higher youth unemployment and wider underemployment,
  • leading to broad wage compression.

This is the core of weak Australian wages. The nation has never run mass immigration into material economic slack before but that’s what we did after the GFC:

What does economics 101 tell us happens when a perpetual supply shock lands on weak demand? Prices fall. Mass immigration has destroyed Australian labour’s pricing power even as it rewrote industrial relations with floods of cheap foreign workers.

Academic research finally caught up to this reality late last year. Below are key excepts from Chapter 13 entitled Temporary migrant workers (TMWs), underpayment and predatory business models, written by Iain Campbell:

This chapter argues that the expansion of temporary labour migration is a significant development in Australia and that it has implications for wage stagnation…

Three main facts about their presence in Australia are relevant to the discussion of wage stagnation. First, there are large numbers of TMWs in Australia, currently around 1.2 million persons. Second, those numbers have increased strongly over the past 15 years. Third, when employed, many TMWs are subject to exploitation, including wage payments that fall below — sometimes well below — the minimum levels specified in employment regulation…

One link to slow wages growth, as highlighted by orthodox economics, stems from the simple fact of increased numbers, which add to labour supply and thereby help to moderate wages growth. This chapter argues, however, that the more salient point concerns the way many TMWs are mistreated within the workplace in industry sectors such as food services, horticulture, construction, personal services and cleaning. TMW underpayments, which appear both widespread in these sectors and systemic, offer insights into labour market dynamics that are also relevant to the general problem of slow wages growth…

Official stock data indicate that the visa programmes for international students, temporary skilled workers and working holiday makers have tripled in numbers since the late 1990s… In all, the total number of TMWs in Australia is around 1.2 million persons. If we include New Zealand citizens and permanent residents, who can enter Australia under a special subclass 444 visa, without time limits on their stay and with unrestricted work rights (though without access to most social security payments), then the total is close to 2 million persons… TMWs now make up around 6% of the total Australian workforce…

Decisions by the federal Coalition government under John Howard to introduce easier pathways to permanent residency for temporary visa holders, especially international students and temporary skilled workers, gave a major impetus to TMW visa programmes.

Most international students and temporary skilled workers, together with many working holiday makers, see themselves as involved in a project of ‘staggered’ or ‘multi-step’ migration, whereby they hope to leap from their present status into a more long-term visa status, ideally permanent residency. One result, as temporary migration expands while the permanent stream remains effectively capped, is a lengthening queue of onshore applicants for permanent residency…

Though standard accounts describe Australian immigration as oriented to skilled labour, this characterisation stands at odds with the abundant evidence on expanding temporary migration and the character of TMW jobs. It is true that many TMWs, like their counterparts in the permanent stream, are highly qualified and in this sense skilled. However, the fact that their work is primarily in lower-skilled jobs suggests that it is more accurate, as several scholars point out, to speak of a shift in Australia towards a de facto low-skilled migration programme

A focus on raw numbers of TMWs may miss the main link to slow wages growth. It is the third point concerning underpayments and predatory business models that seems richest in implications. This point suggests, first and most obviously, added drag on wages growth in sectors where such underpayments and predatory business models have become embedded. If they become more widely practised, underpayments pull down average hourly wages. If a substantial number of firms in a specific labour market intensify strategies of labour cost minimisation by pushing wage rates below the legal floor, it can unleash a dynamic of competition around wage rates that foreshadows wage decline rather than wage growth for employees…

Increases in labour supply allow employers in sectors already oriented to flexible and low-wage employment, such as horticulture and food services, to sustain and extend strategies of labour cost minimisation… The arguments and evidence cited above suggest a spread of predatory business models within low-wage industries.37 They suggest an unfolding process of degradation in these labour markets…

And below are extracts from Chapter 14, entitled Is there a wages crisis facing skilled temporary migrants?, by Joanna Howe:

Scarcely a day goes by without another headline of wage theft involving temporary migrant workers…

In this chapter we explore a largely untold story in relation to temporary migrant workers… it exposes a very real wages crisis facing workers on the Temporary Skill Shortage (TSS) visa (formerly the 457 visa) in Australia. This crisis has been precipitated by the federal government’s decision to freeze the salary floor for temporary skilled migrant workers since 2013… the government has chosen to put downward pressure on real wages for temporary skilled migrants, thereby surreptitiously allowing the TSS visa to be used in lower-paid jobs…

In Australia, these workers are employed via the TSS visa and they must be paid no less than a salary floor. This salary floor is called the Temporary Skilled Migration Income Threshold (TSMIT). TSMIT was introduced in 2009 in response to widespread concerns during the Howard Government years of migrant worker exploitation. This protection was considered important because an independent review found that many 457 visa workers were not receiving wages equivalent to those received by Australian workers…

In effect, TSMIT is intended to act as a proxy for the skill level of a particular occupation. It prevents unscrupulous employers misclassifying an occupation at a higher skill level in order to employ a TSS visa holder at a lower level…

TSMIT’s protective ability is only as strong as the level at which it is set. In its original iteration back in 2009, it was set at A$45 220. This level was determined by reference to average weekly earnings for Australians, with the intention that TSMIT would be pegged to this because the Australian government considered it ‘important that TSMIT keep pace with wage growth across the Australian labour market’. This indexation occurred like clockwork for five years. But since 1 July 2013, TSMIT has been frozen at a level of A$53 900. ..

There is now a gap of more than A$26 000 between the salary floor for temporary skilled migrant workers and annual average salaries for Australian workers. This means that the TSS visa can increasingly be used to employ temporary migrant workers in occupations that attract a far lower salary than that earned by the average Australian worker. This begs the question — is the erosion of TSMIT allowing the TSS visa to morph into a general labour supply visa rather than a visa restricted to filling labour market gaps in skilled, high-wage occupations?..

But why would employers go to all the effort of hiring a temporary migrant worker on a TSS visa over an Australian worker?

Renowned Australian demographer Graeme Hugo observed that employers ‘will always have a “demand” for foreign workers if it results in a lowering of their costs’.  The simplistic notion that employers will only go to the trouble and expense of making a TSS visa application when they want to meet a skill shortage skims over a range of motives an employer may have for using the TSS visa. These could be a reluctance to invest in training for existing or prospective staff, or a desire to move towards a deunionised workforce. Additionally, for some employers, there could be a belief that, despite the requirement that TSS visa workers be employed on equivalent terms to locals, it is easier to avoid paying market salary rates and conditions for temporary migrant workers who have been recognised as being in a vulnerable labour market position. A recent example of this is the massive underpayments of chefs and cooks employed by Australia’s largest high-end restaurant business, Rockpool Dining Group, which found that visa holders were being paid at levels just above TSMIT but well below the award when taking into account the amount of overtime being done…

Put simply, temporary demand for migrant workers often creates a permanent need for them in the labour market. Research shows that in industries where employers have turned to temporary migrants en masse, it erodes wages and conditions in these industries over time, making them less attractive to locals…

A national survey of temporary migrant workers found that 24% of 457 visa holders who responded to the survey were paid less than A$18 an hour.  Not only are these workers not being paid in according with TSMIT, but they are also receiving less than the minimum wage. A number of cases also expose creative attempts by employers to subvert TSMIT. Given the challenges many temporary migrants face in accessing legal remedies, these cases are likely only scratching the surface in terms of employer non-compliance with TSMIT…

Combined, then, with the problems with enforcement and compliance, it is not hard to conclude that the failure to index TSMIT is contributing to a wages crisis for skilled temporary migrant workers… So the failure to index the salary floor for skilled migrant workers is likely to affect wages growth for these workers, as well as to have broader implications for all workers in the Australian labour market.

The micro-economic evidence has been overwhelming for years:

  • For years we have seen Dominos, Caltex, 7-Eleven, Woolworths and many other fast food franchises busted for rorting migrant labour.
  • The issue culminated in 2016 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 systemic abuses of Australia’s temporary visa system for foreign workers.
  • Mid last year, ABC’s 7.30 Report ran a disturbing expose on the modern day slavery occurring across Australia.
  • Meanwhile, Fair Work Ombudsman (FWO), Natalie James, told Fairfax in August last year 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.
  • Then The ABC reported that Australia’s horticulture industry is at the centre of yet another migrant slave scandal, according to an Australian Parliamentary Inquiry into the issue.
  • The same Parliamentary Inquiry was told by an undercover Malaysian journalist that foreign workers in Victoria were “brainwashed” and trapped in debt to keep them on farms.
  • A recent UNSW Sydney and UTS survey painted the most damning picture of all, reporting that wages theft is endemic among international students, backpackers and other temporary migrants.
  • A few months ago, Fair Work warned that most of Western Sydney had become a virtual special economic zone in which two-thirds of businesses were underpaying workers, with the worst offenders being high-migrant areas.
  • Dr Bob Birrell from the Australian Population Research Institute latest report, based on 2016 Census data, revealed that most recently arrived skilled migrants (i.e. arrived between 2011 and 2016) cannot find professional jobs, with only 24% of skilled migrants from Non-English-Speaking-Countries (who comprise 84% of the total skilled migrant intake) employed as professionals as of 2016, compared with 50% of skilled migrants from Main English-Speaking-Countries and 58% of the same aged Australian-born graduates. These results accord with a recent survey from the Bankwest Curtin Economics Centre, which found that 53% of skilled migrants in Western Australia said they are working in lower skilled jobs than before they arrived, with underemployment also rife.
  • The Australian Bureau of Statistics (ABS) latest Characteristics of Recent Migrants reportrevealed that migrants have generally worse labour market outcomes than the Australian born population, with recent migrants and temporary residents having an unemployment rate of 7.4% versus 5.4% for the Australian born population, and lower labour force participation (69.8%) than the Australian born population (70.2%).
  • ABC Radio recently highlighted the absurdity of Australia’s ‘skilled’ migration program in which skilled migrants have grown increasingly frustrated at not being able to gain work in Australia despite leaving their homelands to fill so-called ‘skills shortages’. As a result, they are now demanding that taxpayers provide government-sponsored internships to help skilled migrants gain local experience, and a chance to work in their chosen field.
  • In early 2018 the senate launched the”The operation and effectiveness of the Franchising Code of Conduct” owing in part to systematic abuse of migrant labour.
  • Then there is new research from the University of Sydney documenting the complete corruption of the temporary visas system, and arguing that Australia running a “de-facto low-skilled immigration policy” (also discussed here at the ABC).
  • In late June the government released new laws to combat modern slavery which, bizarrely, imposed zero punishment for enslaving coolies.
  • Over the past few months we’ve witnessed widespread visa rorting across cafes and restaurants, including among high end establishments like the Rockpool Group.
  • Alan Fels, head of the Migrant Workers Taskforce, revealed that international students are systematically exploited particularly by bosses of the same ethnicity.

The ACTU has now stated this outright as well:

Wright and Constantin (2015) surveyed employers using the 457 visa scheme and found that 86% state that they have experienced challenges recruiting workers locally. Despite identified recruiting difficulties, the survey found that fewer than 1 in one hundred employers surveyed had addressed ‘skill shortages’ by raising the salary being offered. Labour ‘shortages’ should first be addressed through a readjustment in the price of labour – increased wages. An inability to find local workers to work at a specified wage rate, coupled with an unwillingness to offer higher wages, does not necessarily imply a skill shortage – particularly where local workers would be willing and able to work if the wage rate was lifted. This differs from a skill shortage in which there are simply not enough people with a particular skill to meet demand.

The relatively recent availability of a large and vulnerable pool of temporary migrant workers has undoubtedly contributed to current record low levels of wages growth and a growing reluctance by employers to train local workers…

While there are approximately 1.5 million temporary entrants with work rights, the overseas worker team at the Fair Work Ombudsman consists of only 17 full time inspectors to investigate cases of exploitation – over 80,000 visa workers per inspector. Inadequate enforcement and penalties act as an incentive for employers to exploit temporary workers when the benefit from doing so outweighs the cost of the penalty. or where the probability of being caught is sufficiently low….

There have been a range of abuses uncovered which have clearly shown that the entire system is broken. From 7-11 and Domino’s to agriculture, construction, food processing to Coles, Dominos and Caltex, it is clear that the abuses occur in a number of visa classes whether they be students, working holiday makers or visa workers in skilled occupations.

These abuses include: a) Underpayment of wages and superannuation, including being forced to pay back wages b) Abuse ranging from psychological to physical c) Threats of deportation if complaints are made or workers join unions d) Being forced to live in sub-standard conditions

A system predicated overwhelmingly on temporary work cannot create the benefits that migration has been praised for…

Migration intermediaries have a vested interest in inflating demand. Australia has created a massive industry with many migration agents outside of our jurisdiction who cannot be prosecuted for breaches. This mushrooming “migration industry”- a complex and transnational web of agents, lawyers, labour recruiters, accommodation brokers and loan sharks – is currently largely unregulated.

The growth of labour hire operators alongside the migration industry has led to companies seeking to sell temporary migrant workers to employers, creating a fake “Job Network” which preferences temporary workers over Australians.

Labor must comprehensively reform the visa system and cut temporary as well as permanent migration numbers or it will never lift wages.

We reckon the easiest way to end the rorts is simply raise the minimum salary for skilled visas to $100k.

Comments

  1. We reckon the easiest way to end the rorts is simply raise the minimum salary for skilled visas to $100k.

    👏🏾👏🏾👏🏾👏🏾

    Ah yes, the Jacob solution. I love it, because I love big dumb rules.

    Well done, Jacob, you’re getting cut-through.

    • reusachtigeMEMBER

      Is that the unsuccessful dude? He’d be a high achiever by now if he’d just undercut the vibrants on price, for example $13.75/hr, to secure himself a job.

      • I stopped talking about luxury bathrooms because I figured that you chaps are sick of hearing about them.

        Here you go:

        1967 American Standard Cadet Flushing MASSIVE Amount Of Toilet Paper

        https://www.youtube.com/watch?v=Cv9jrGpLYCk

        The government should bring back the high flow toilets. These low flow toilets are crap. One time I put 5 swabs of toilet paper (not rolls, swabs, enough to clean my self) in a low flow toilet and it plugged up.

        Government should not ban perfectly safe products. Remember the Home Alone movie? Harry’s head was on fire and he was able to dunk it in the loo to put out the fire.

    • For supposedly “skilled” migrants that makes sense as they should be paid above mean & they should by definition be filling skilled roles that are in shortage. (not what we have now)

    • Better still they should have to pay at least the meadian wage for the skilled shortage they are coming to fill & the employer payees the government extra equal to the cost of training an Aussie (of any race 😉) to fill said skilled shortage. Thus the new immigrant doesn’t get despised by his/her lower paid Aussie colleagues & they don’t get paid more than Aussies & the economy gets its skilled gaps filled while local education/training suppliers get a boost also!

  2. GunnamattaMEMBER

    Royal Commission into Australian Immigration

    Volumes, processes, beneficiaries and relationship to national economic outcomes

    we need one now.

    • robert2013MEMBER

      Why? How effective are royal commisions at getting things done? We need to get on to the streets, burn a few cars, skirmish with law enforcement and then we might have a chance of being taken seriously. The French get it.

    • Yes we do (need a Royal Commission).
      This is not just an isolated case.

      We have over 2.5 million non resident migrant guestworkers onshore in Australia with at least 1.4 million on some visa pretext or in blatant visa breach.

      A Royal Commission.
      This has to be initiated by the Government of the day.
      That can be forced by public protest, petitions and submission.
      It has to be in the public / national interest.
      The terms of reference have to be specific.
      It goes to the Governor General for a tick in the box.
      A Royal Commission can and often does survive successive governments – and is above and independent on any political authority.

      (Detail in comments below – posted before I saw your comment)

  3. Don’t you think it ridiculous that the price structure has been inflated to the point where $14 an hour is a bad wage?

    • I’ve long argued labour should take its fair share of repairing the real exchange rate. But not all of it via ginormous and self-defeating immigration lie.

    • ErmingtonPlumbingMEMBER

      Geez V
      I was getting 14 bucks an hour in the late 80s!
      How old are you?

      • People still believe that a unit of fiat currency is worth something. It is useful as a medium of exchange but it does not have any intrinsic value. Whether the minimum wage is 14c or $14 or $1400, prices will adjust accordingly.

  4. Wino Shinyface

    The penalty should send a message to fast food businesses……..BWHAAAAAAAHAAAAAHAAAAAHAAA…….oh deary me BWHAAAAHAAAAHAAAA ….send a message BWHAAAAHAAAHAAA

    • SupernovaMEMBER

      Easy fixed: Fast food businesses begin to close down…..too many industrial relations laws and allowances to operate a profitable venture. Argentina here we come…..after of course an Irish style housing downturn/correction.

      • DominicMEMBER

        Nah, a $5 Sub becomes a $10 Sub. Simple!

        The truth of it is these franchises are a disaster for most franchisees — I’ve know a few of these poor saps in my time and the only winners are the franchisors. Have a look at Gerry Harvey’s bank account for proof.

  5. The 100k barrier doesnt work. Massive wage fraud already. There already is a provision whereby if your minimum salary is 96k you could waive the English requirement on some occupations.

    Guess what happened? 96k a year cooks, hairdressers and the rest all started springing up.

    Cut numbers and jobs off the skills list is the only fix.

      • No, it’s not because none of it is enforced. They’ve increased it to 96k for exactly the same reason and no effect.

        Again, knowledge on the Act and regulations is key rather than pointless contrarianism.

      • 100K means 24.6K tax (source: ATO simple tax calculator). Not that the vibrant notices, because it’s PAYG.

        Then make the vibrant pay back say 50% of their take home pay (ie 37.7K) in cash. They end up earning 37.7K per year. Including their tax, you have paid $62.3K. Meanwhile your business can claim $100K per year as a salary expense.

        Or just pay them all in cash.

  6. Actually, if you set the minimum wage to $100k you can inflate away the gigantic debt. Party forever!!

    • SupernovaMEMBER

      Argentina’s inflation created unemployment. Funny how the professors rarely use Argentina as an example where Australia is heading.

      • Inflation did not “create” unemployment in Argentina, Venezuela, Zimbabwe or other places. Rather, hyperinflation is a symptom of a failed economy / society / nation. Hyperinflation is always going to be politically easier than austerity so most debt laden governments opt for the Zimbabwe “solution”.

        It is a path to ruin, of course.

  7. We do (need a Royal Commission).
    This is not just an isolated case.

    We have over 2.5 million non resident migrant guestworkers onshore in Australia with at least 1.4 million on some visa pretext or in blatant visa breach.

    They are mostly adult, third world, unskilled.
    They form 10% of Australia’s population (2.5 / 25 million) and 17% of the estimated workforce (12.7 million legal & 1.4 million illegal =14.1 million / 2.4 million of the mostly adult 2.5 million non resident migrant guestworkers working).
    Nearly 1 in 5 Workers, legal or illegal is a non resident migrant guestworker.

    A Royal Commission.
    This has to be initiated by the Government of the day.
    That can be forced by public protest, petitions and submission.
    It has to be in the public / national interest.
    The terms of reference have to be specific.
    It goes to the Governor General for a tick in the box.
    A Royal Commission can and often does survive successive governments – and is above and independent on any political authority.

    The Royal Commission rulings can be binding and can force federal constitutional & legislative change.

    The desired end result on Australian border control & visa enforcement is – to strip all immigration control powers from the federal government – both DHA (Dept of Home Affairs which includes Borders & Immigration) & DFAT, Dept of Foreign Affairs & Trade.

    And put all immigration/Citizen/PR and non resident visa policy & access settings under the authority of a politically independent & Australian representative controlled authority.

    DHA/ABF, the Appeals Tribunal, ASIC, the tax office, the various state police forces, housing authorities and all other authorities are then bound to comply & enforce non resident visa intake policy, non resident identity cards, locations, tracking, non resident employment, financial activity & income reporting, their accommodation, rent paid/ who to, use of public services & infrastructure and other visa rules & enforcement that is normal in other countries.

    A Royal Commission is the only way to force these changes.

    -/-
    The scale of the Non resident migrant guestworkers impacts to Australia & Australians.

    1st March 2019.
    🔹2.561 million non resident migrant guestworkers in Australia. 5.7% growth rate in the last year.

    🔹In March 2018 we had 2.431 million Migrant Guestworkers onshore.
    Fact check.
    https://www.vsure.com.au/many-temporary-residents-working-australia/

    The March 2018-March 2019 Yearly growth was 5.7% across all visa categories based on the DHA quarterly updates.

    That is 130,000 extra TR migrant guestworkers in the last year.
    Getting close to the entire PR intake of 190,000.

    🔹 So the March 1st 2019 estimate is : 2,561 million Migrant Guestworkers.

    Concentration of impact.
    🔻Sydney 1.31 million or 1 in 4 people are a non resident migrant guestworker.
    🔻Melbourne 1.05 million, or 1 in 5 people are a non resident migrant guestworker.
    🔻And 250,000 elsewhere, mostly other state capitals.

    Their Australian Wages impact.
    1.4 million non resident migrant guestworkers are on a visa pretext / working illegally. Posted in detail here before.

    The vast majority are of third world origin, adult & unskilled. (DHA tables of origin & visa category at bottom of the Vsure link)
    They have very high rates of work participation – but many work illegally as well legally due to their visa categories & conditions if entry or COE.

    The vast majority on extensive evidence, plus their DHA listed country of origin & visa category indicates they are poor to very poor, often in debt to a foreign agent procurer, and burdened in sending back remittances to their families in their country of origin.
    (World Bank & Western Union / explosion in Australian personal xfer / foreign remittances from $4b to $18b)

    Many have fake ID, multiple jobs, work in the cash economy, or ABN / labor rings with no tax paid.

    🔹TR migrant guestworker income.
    The Treasury estimate is migrant TR yearly earnings of $43.7 each or $24 hour.
    And that’s generous.
    There is much media evidence & exposure that it is closer to $15 or $10 an hour – offset by extreme hours & multiple jobs. (As per this article)

    As a broader example: the foreign students & partners across a number of visa categories.
    The total declared funds of all TR yearly is $4.2 billion (DHA). The foreign students (non self declared) are $2.8 billion of this. However this is extensively frauded.
    The 672,000 foreign students & partners do form a $29 billion onshore sub economy of economic activity (@$43.7 each average income) but almost all that money was earned here onshore & 75% illegally fake ID or cash in hand.
    So our foreign student industry is NOT an Export industry at all.
    The attending primary students only pay $8.2 billion in fees (Deloitte Access Economics) which is less than 505,000 jobs they steal costing some $9.2 billion in Centrelink.
    So even on basic primary measures, the foreign student industry is immediately negative and a cost burden import to Australians.

    And it’s the same in the other visa categories.

    On balance the 2.5 million migrant guestworkers, who are mostly adult working age & unskilled, highly motivated to work legally & illegally / displace at least 2 million Australian jobs.

    As we see in our unemployment statistics (below).

    They massively lower Australian wages.
    The average Australian wage ABS May 26th 2017 full-time male weekly earnings $1,631 / females $1388 weekly..
    Or 50/50 gender = $1,500 or $78,000 or $43 a hour.
    So even using the much higher treasury migrant guestworker wage estimate (perhaps the cash rate of $15 -20 hour being a gross rate of $24 hour if they were actually to pay tax) the migrant guestworkers are working at $24 an hour, or half the rate of the $48 Australian average.
    12.7 million (ABS seasonally adjusted Workers Dec 2018) + the migrant guestworkers illegal black economy the ABS has no stats for (1.4 million) = 14.1 million.

    12 million at $48 hour & 2.1 million of the 2.5 million migrant guestworkers working at $24 a hour in a full time equivalent week (one or multiple jobs)

    ➡️ That gives an Australian wages loss or degradation of 6.8% or more.

    Which means every migrant guestworker costs every Australian ($1,500 a week average) at least $102 a week or $5,300 a year lost income.

    That’s just the tip of the iceberg in impact.

    Many migrant guestworkers are working illegally, Fake ID, cash, labor rings so they aren’t paying tax, but they are creating massive cost impacts on public services, transport, education & infrastructure projects – so that is an extra tax burden on Australians subsidising the migrant guestworkers.

    The migrant guestworkers create Australia unemployment.

    We have 1.3 million Australian/PR unemployed (Roy Morgan feb 2019) & lets say half are totally unemployable, but the other half genuinely can’t get a legal job because migrant guestworkers are being hired instead.
    So that’s at least 750,000 Australian/ PR at $18k centrelink / support a year each – costing the Australian taxpayer $13.4 billion or $1,100 per Australian taxpayer.

    We then have another 1.1 million Australians seeking work. No direct taxation outlay impact, but let’s say it’s only part time work at the same rate of $43.7k as the migrant guestworkers.

    That’s $48 billion of lost wages earnings & another 18% tax loss of $9 billion on that potential income & again lowering our GDP per Capita.

    Then add on 116,000 Australian permanent homeless and another 360,000 on housing assistance displaced by the migrant influx – that directly costs us $4.8 billion a year (DHS) – that’s another $400 each taxpayer cost.

    Then add on housing contention (rent or mortgage debt) cost of living impacts – another $3,000 at least of direct tangible costs yearly.

    Then add on degraded our education with exploding costs as the education industry was allowed to sell itself as a migrant guestworker visa alibi – at say a modest $2-3,000 per averaged worker yearly.

    Then add on congestion, contention and overload of services, hospitals, environment, ‘water levies’ tolls etc as the cities population explodes way beyond projectors capacity – $2,000 a year each.

    And it quickly gets to the view that each and every migrant guestworker is costing something like $5,000 a year lost wages growth / income ($60.5 billion) over $20 billion in lost taxation as much of this is at the top rate… plus other taxation loss in the people seeking work but displaced by the migrant guestworkers.
    Plus an added cost of living of some $6,000 each as well..

    ➡️🔻So $11k negative to each Australian worker.🔻
    That’s a very conservative estimate.

    -/-
    If we exited the 1.4 million migrant guestworkers who are working & living illegally..

    And if we controlled the remaining 1.1 million to be either be no work rights at all, or genuine high quality skilled & high income earners..

    Then the average Australian Workers would be $11k or 14% better off.

    That would ‘catch up’ nearly a decade of gdp per Capita, wages and productivity decline.

    Our government wages tax inputs would be much higher, our outlays would be far less – justifying a reduction in taxation rates.

    The cost of living would fall.
    Large white elephant ‘infrastructure projects’ costing tens of billions would not be needed.

    ▪️The Net Benefit:
    ▫️A Higher Australian Employment rate,
    ▫️A higher gdp per capita – particularly as most of our economy is based on fixed commodity exports divided by the number of people here. Less people, higher average GDP per Capita.
    ▫️Less taxation,
    ▫️Lower cost of living,
    ▫️Better housing affordability,
    ▫️Better & more affordable education,
    ▫️Less congested trains & buses.
    ▫️Over 500,000 cars / international licence drivers taken off the city roads,
    ▫️A more sustainable use of our infrastructure & environment
    ▫️And a far better standard of living for all Australians and our new PR. (Who we are stuck with btw).

    -/-
    Neither major political party has shown any indication to act to the Australian public interest, despite the majority of Australians wanting a reduced migrant intake.

    Both political parties have a long history of deceit and playing out tangential issues (457, backpacker tax, boat people etc) whilst increasing the migrant intake.
    Both parties have been exposed as beholden to vested interests and lobbyists to continue the migrant guestworker overload.

    The Australian people need to take control of our migration intake via a Royal Commission.

    A People’s Migrant Control Commission then established that controls all migrant intake settings, social & economic capacity, and sets the policy for locations, condition of entry, tracking & visa enforcement.

    Slash the PR intake.
    Force location controls, non resident identity card, income and activity reporting for all non residents (as per China and most other countries).

    And rapidly exit at least 1.4 million non resident migrant guestworkers in visa breach, who should have never been allowed into Australia in the first place.

    • davidjwalshMEMBER

      keep it up Mike ….. lots of mocking even on this site …. unfortunately ….. get the message out there. Eventually the sheeple will begin to understand …. for me, I am and I stress, almost, beyond caring given my age. Spoke about all you write about as the inevitable consequences of the then policies …. often a great personal cost …

      maybe there will be enough attention paid now to sort of limit the downside a little … not holding my breath …

      keep at it and protect your future as much as you can ………………

      • Hi, thanks for your comments.
        Most people are dimly aware something’s not right, and that’s it’s much bigger than just the ‘PR intake’ or ‘refugees’.
        1.9 million unskilled third world PR last decade.
        2.5 million unskilled non resident third world TR
        Another 440k tourist visitors (5% of the 8.8 million yearly) working illegally.
        Close to 5 million.
        1 in 4 in Sydney a non resident. 1 in 5 in Melbourne.

        On this site (MB) in there seems to be a delineation between those who do, or don’t live in Sydney or Melbourne.

        And then if in Sydney or Melbourne – those who do or don’t live in migrant dominated areas.
        Only a few appear to have ever lived overseas for some time in third world countries & can compare those societies & people versus the quality of what’s getting in here – which is not the best or brightest or most deserving but the corrupt & underclass detritus.
        Most can’t conceive that foreign governments, their passport offices & the agents & foreign criminal syndicates actively collaborate in systemic visa fraud to dump an illegally working, money laundering & remittance generating underclass into Australia.

        And there is lot of preconditioned cultural cringe – somehow it’s ‘racist’ or ‘xenophobic’ to state the obvious – our border control & visa intake settings are broken.

        It’s not a race or migrant issue.
        It’s about the migrant volumes, the quality of those migrants and their economic/social impact – negative or positive.
        The Australian people don’t get any say in this.
        No one said to the Australian people – “let’s bring in 5 million third world unskilled migrants as your future economic & social burden” – vote ‘yes or no’. 🙂

        In my view is it all need to be lifted out of being a vested interest & politicised debate.
        The migrant intake & quality settings need to directed by a people’s Commission independent of any government in power. That can only happen politically by a Royal Commission stripping those powers from the federal government and placing that authority into a non political & Australian people represented body.

        It will happen eventually, the pending recession and third world unskilled migrant intake overshoot forces something to snap eventually.

  8. Spare a thought for fee-paying domestic students at one of our university degree mills who are subsidising the business model via a slavery mechanism that is little discussed.

    Due to the large volumes of overseas students crammed into the system and less favourable staff:student ratios, “group” projects are now a popular course mechanism. These projects frequently attract a “group score”.

    Now imagine you are the only native English speaker with adequate writing skills in a group of people dominated by ESL overseas students? You end up overseeing the editing and composition of group work and explaining the requirements. What else can you do? You are blackmailed by the collective scoring system.

    A great experience in real life diversity and international relations? I think not. Instead, this is a form of unpaid labour and symptomatic of a business model that asks domestic students to subsidise the institution’s lack of resources to service the rivers of gold from international students plonked into degree courses they don’t have the basic skills for.

    It’s nuts. What next, a private hospital cramming in sick patients it can’t adequately care for – because of a profit motive?

    In our universities domestic students are being ripped off and made to work for no pay whilst getting a devalued education. This is exploitation and the abuse of authority.

    Clearly the cart has been put before the horse – as it would be cart-ist not to do so.

    • ErmingtonPlumbingMEMBER

      Well written post there Clive.
      Makes me feel depressed for my kids.
      They and their mates are still a decade away from Uni but I fear little will change for the better by then,…it’ll probably be worse.

      • Thanks EP. The future of my kids is an issue similarly close to my heart. It certainly won’t change until the current domestic students realise how badly they are being done over. One gets the impression that they are too PC and too intimidated to make a fuss.

        Two opportunities are being missed. 1. Domestic student inputs and costs needs to be fairly valued and compensated for; 2. Universities that cater for ESL education in science is a specialist field that is presently not well catered for. Rather than allowing dodgy education businesses to take this niche it could be a profitable college system that takes pressure off domestic tertiary education.

    • My missus recently returned to do a year long course. She flat put refused to do the group component, somehow it worked.

      • This is exactly what I did in my undergrad a few years back. Just refused, told the lecturer I’d do it on my own. My course was mostly foreign students. Now I’m going back this year to do my Masters. I’ve decided that instead of doing any group work on my own, I’m going to demand $1,000 from each foreign student I get lumped in with. If I’m going to do the whole thing on my own, I may as well profit off of it.

  9. Raising it to $100k won’t do a thing
    They’ll keep paying them $40k in practice as the chances of being caught and penalised are very low

  10. The ombudsman should have said to the complainant that he should be more careful what ‘types’ he works for in the future.