ABC must stop publishing disgraced Migration Council

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By Leith van Onselen

For years, MB has questioned the efficacy of the Migration Council of Australia, which purports to be an “an independent, non-partisan, not-for-profit body established to enhance the productive benefits of Australia’s migration and humanitarian programs”.

The Migration Council is chaired by one of Australia’s biggest business lobbyists, Innes Willox, who is also CEO of the Australian Industry Group.

For years, Innes Willox has lobbied against laws to prevent wage theft, lobbied against stricter labour hire rules, and has spread copious propaganda about skills shortages.

Today, Willox is at it again, this time lobbying against stronger labour hire regulation and criminal penalties for wage theft. From The ABC:

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One of Australia’s leading business lobby groups is urging crossbench senators not to pass any industrial relations changes if Parliament sits before the Senate changes over…

“There is a need for genuine consultation with industry about all the proposed changes to workplace relations laws before and after any legislation is drafted,” Ai Group chief executive Innes Willox wrote in a 14-page letter…

The Ai Group has also expressed concerns about a number of changes recommended by the Government’s Migrant Workers’ Taskforce being considered by both the Coalition and Labor.

These include a national labour hire licensing scheme to regulate companies that provide workers, particularly in the horticulture, cleaning, security and meat processing industries…

“Taking away the flexibility that labour hire businesses and their clients need would reduce productivity, competitiveness and employment,” Mr Willox warned the crossbench senators…

The Ai Group is also arguing against another recommendation of the Migrant Workers’ Taskforce, that criminal penalties should be introduced for serious and deliberate breaches of workplace laws…

“Implementing criminal penalties for wage underpayments would discourage investment, entrepreneurship and employment growth,” he added…

Last month, the Migrant Workers’ Taskforce released its final report, which found that “wage underpayment is widespread and has become more entrenched over time”, with as many as half of all migrant workers exploited:

Underpayment of migrant workers is certainly not a new problem. It has not recently emerged, but instead it has been a feature of some sectors of the Australian labour market for years…

Wage exploitation of temporary migrants offends our national values of fairness. It harms not only the employees involved, but also the businesses which do the right thing.

… evidence shows that unscrupulous labour hire practices exist to help take advantage of vulnerable workers, particularly in the horticulture, cleaning, meat processing and security industries…

The Taskforce found that labour hire operators that exploit migrant workers often create complex operating environments that make it harder to ensure compliance with the law. This can include involvement in the black economy, the use of intermediaries (e.g. accommodation providers and migration agents) and potential acts of money laundering, human trafficking and modern slavery…

The main driver of unscrupulous labour hire operators is to lower labour costs and associated charges and gain a competitive advantage. In high risk sectors, the work is intensive and low-skilled, and labour costs are a significant part of the overall business costs…

Labour hire operators may use overseas migration agents in source countries to recruit workers and facilitate their visa for travel, work, accommodation and local transport (often with high charges, which may lead to debt bondage). In some cases, the Australian arm of the business is run by a visa holder who then employs and underpays other visa holders of the same nationality…

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The ACTU has also raised the alarm, claiming the perpetual flood of migrant workers, often through labour hire arrangements, is a direct cause of Australia’s anaemic wages growth:

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…

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…

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.

Lets ask the question once more: does the Migration Council exist as a lobby to benefit migrants and Australians or is it only there to enable business to exploit cheap labour to the detriment of migrants and the Australian community?

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Why isn’t the ABC asking Innes Willox that question? And if the answer is as unsatisfactory as it appears then why is it interviewing him at all?

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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.