John McVeigh (Groom, Liberal Party) Share this | Hansard source

It is a pleasure to rise to speak on the Turnbull government's Fair Work Amendment (Protecting Vulnerable Workers) Bill 2017. Our government recognises that the deliberate underpayment of workers has been too common in Australia and such practices have, unfortunately, as we know, been uncovered at 7-Eleven, Muffin Break, Gloria Jean's, Subway, Caltex, Domino's and Pizza Hut franchises. We have also seen a number of cases of exploitation of seasonal workers in horticultural industries, for example, and they are quite often migrant workers. Such conduct has unfortunately developed due to weak laws, amongst other things, which make it difficult for the independent Fair Work Ombudsman to prove exploitation. This bill, therefore, delivers on the final element of the government's election commitment to protect vulnerable workers from unscrupulous employers, which, in turn, is fairer for competing businesses who do the right thing and pay their employees properly.

In this place, I am proud to represent the electorate of Groom, which has one of the lowest levels of unemployment in the nation. It is an entrepreneurial and small business focused region—a place with many opportunities. But we cannot assume that we are immune to the exploitation of workers by unscrupulous employers either. As I have said throughout regional areas such as ours, we have seen the example in the horticulture sector where contract employment agencies or labour hire companies have on occasions not met their obligation to employ properly staff working in their clients' businesses. Although distressing, I must say it has been good to see such practices being identified and addressed. It is these and other instances that I am keen to see addressed, especially when the good name of such client organisations including farmers, food packers and processors are unfairly and disgracefully tarnished despite the fact that they have done nothing wrong at all.

We all know that the vast majority of employers do the right thing by their employees, including most especially those who could be considered vulnerable. This bill is deliberately designed to lift the compliance rate even higher. The bill introduces higher penalties for serious contraventions of payment-related workplace laws which will apply where the underpayments or other breaches are deliberate and systemic. The penalties for these contraventions will be 10 times higher than usual. It will increase penalties for breaches of record keeping and pay slip requirements—not for genuine mistakes but for deliberate and systemic breaches. The bill also prohibits employers asking for cash back from their employees. Vulnerable workers can easily be intimidated, as we have learnt, into handing back part of their wages in cash or other coercive behaviour under threats of losing their employment. The bill will also clarify the accessorial liability provisions to make them more effective in ensuring holding companies or franchisors are held accountable if they should have reasonably known of payment contraventions of franchisees or subsidiaries. It also prohibits hindering or providing false information to Fair Work inspectors in their work in compliance with the Fair Work Act. Finally, the bill strengthens the Fair Work Ombudsman's evidence-gathering and protection powers to ensure that deliberate and systematic contraventions of workplace laws can be effectively investigated, similar to those powers held by other regulators such as ASIC and ACCC.

It should be noted that the measures in this bill come on top of the government's establishment of the Migrant Workers' Taskforce, chaired by former ACCC chair Professor Allan Fels, to target employers who exploit migrant workers and monitor progress of rectification of prior instances of underpayment. Its provision of additional funding as outlined in this bill to the Fair Work Ombudsman for investigation and prosecution relating to instances of worker exploitation is another feature that strengthens up provisions to protect vulnerable workers. Of course, both of those are in line with the coalition's May 2016 policy to protect vulnerable workers. This particular bill implements the third aspect of that commitment in legislating to create stronger protections for employees in the Fair Work Act. This is yet another instance of the Turnbull government listening to employees and employers as well as our regulators, identifying problems and shortcomings that can allow exploitation to emerge and going about putting in place the safeguards, provisions and solutions the Turnbull government promised.

As we talk about these protections and this continuing and increased focus from the Turnbull government on protecting vulnerable workers, such as in the instances of franchisees and amongst migrant workers—the examples we have all noted—I particularly want to revisit the comments about the practices of some of those unscrupulous employment agencies or labour hire companies in the horticulture sector as seen in regional areas such as my electorate of Groom and throughout horticultural production regions throughout the entire nation. Again, I stress that it is galling to see that when investigations are, understandably, undertaken—obviously, we will see more of that and, eventually, less unscrupulous behaviour such that those investigations may not be required as often or, hopefully, at all—quite often, the good names of client organisations of those labour hire companies and organisations who are, effectively, employment agencies are tarnished and dragged through the mud when those companies, which are often farming and food-processing companies in regional areas, are proven to not be doing the wrong thing. They are proven to be doing the right thing in relating to and, certainly, remunerating their employees on a fair and legal basis and depending on them, in the long term, for the livelihoods of their businesses. That typically involves many Australians and, of course, migrant workers as well. To see their names tarnished because of unscrupulous activity by labour hire companies is galling indeed. It is something that I want to see regional areas focus on. I want people, particularly potential employees, to understand that those farming, food-packing and food-processing businesses in regional areas, on which, most often, our regional economies can depend, are doing the right thing. This is about weeding out the unscrupulous employer organisations, such as labour hire companies that we have heard of.

With that in mind, I am particularly proud to be standing here to speak on this bill. It seeks to put in place, as I have said, further measures that are outlined to protect the most vulnerable workers in our nation. That is important in Groom and throughout Australia and it ensures fairness for hardworking employees and, of course, law-abiding employers.

(Quorum formed)

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