Lisa Chesters (Bendigo, Australian Labor Party) Share this | Link to this | Hansard source

I move:

That this House:

(1) notes:

(a) the Fair Work Ombudsman's (FWO's) report Inquiry into the wages and conditions of people working under the 417 Working Holiday Visa Program (October 2016) found that more than one third of 417 visa holders claimed that they were paid less than the minimum wage;

(b) the inquiry found that the 417 visa program created an environment where unreasonable and unlawful requirements are being imposed on visa holders by unscrupulous businesses;

(c) the FWO, Ms Natalie James, said in a statement that the inquiry confirms that overseas workers seeking regional work to satisfy the 88 day requirement and obtain a second-year 417 visa are particularly vulnerable to exploitation;

(2) acknowledges:

(a) that in 2015-16, 76 per cent of litigations filed by the FWO involved visa holder workers;

(b) that the inquiry found instances of employers engaging in sophisticated labour supply chains involving sham contracting, where workers were in fact employees, to exploit vulnerable 417 visa holders to gain a competitive or commercial advantage through the reduction of labour costs; and

(c) findings from the inquiry found that the 417 visa program has been used to source an unpaid workforce, thus facilitating an unfair commercial advantage to these employers, distorting the market place and placing pressure on the domestic employment market;

(3) expresses its disappointment in the Government for announcing yet another taskforce, the Migrant Workers Taskforce, to look at the issue of worker exploitation, while there is still no legislation that has been presented to the Parliament that will change the law to protect exploited workers; and

(4) calls on the Government to join the Opposition in preventing workers from being exploited by supporting its legislation before the Parliament, the Fair Work Amendment (Protecting Australian Workers) Bill 2016.

A few weeks ago, in October, the Fair Work Ombudsman handed down another damning report into the misuse and abuse of 417 visa holiday workers here in this country, typically known to all of us as backpackers. Whilst the government continues to twist itself in knots around backpackers and the backpacker tax, what they are not doing is addressing a number of the claims and findings that have been recommended by this Fair Work Ombudsman report.

It found that a third of 417 visa holders that it surveyed were not being paid their proper entitlements; in fact, they were being paid less than the minimum wage. It also found that a number of workers were forced to pay for their second engagement, commonly known as the '88-day requirement', to obtain their second year of work rights. The report also found that not only had some of the workers had to pay for this engagement but they actually had to hand money back. The report also found that backpackers were quite often housed in unacceptable conditions, with up to 10 people in a room, they were billed ridiculous amounts for their board and were left feeling very isolated and lonely.

This report that was released by the Fair Work Ombudsman cannot be ignored by this government. They continue to ignore report after report from the Fair Work Ombudsman, and it is time that they started to act. It is time that they started to crack down on the labour supply chains involving sham contracting. It is time that they stopped the exploitation of vulnerable backpackers here in our country, who are essentially here as guest workers.

The backpacker visa was originally designed as a cultural exchange. It encouraged young people from overseas to come to this country, to travel and to work. Equally, Australians have done the same overseas. But more recently, in the last five years the visa has become a backdoor way for employers to engage cheap labour. I know those opposite like to smirk, but you cannot smirk about the fact that a third of young backpackers employed on this visa are being underpaid. They are being exploited by unscrupulous employers and by labour hire companies.

Just some local examples: in my own electorate of Bendigo, DON KR, rather than hiring young university students or young people in our community, have engaged a labour hire firm that employs backpackers from Taiwan. These workers, when we have spoken to them directly, are not being paid the minimum rates. DON KR says that they are looking into the fact. But even if they were to be paid the award rates, they are still undercutting the collective agreement that exists in that workplace by at least $4 an hour. It is unfair that local workers are missing out to backpackers.

There is also a problem not just in the meatworks and not just in horticulture but also in construction. There is a problem even in industries like social work. One case that was brought up was that, in the state of New South Wales, there are Irish backpackers working as social workers to some of the most vulnerable children that we have in our country. They are a not-for-profit that has a contract from the New South Wales government, that has engaged backpackers to be social workers to support children who are in the foster care system. It is just disgraceful that we are living in a situation where, to fill labour shortages, a visa that was intended for a cultural exchange is being used. These backpackers are not aware of their rights and, because of that, are not being treated with the respect or paid the wages that they are entitled to.

The other problem with the backpacker visa, which the government is choosing to ignore, is that one in five backpackers walk onto a farm. They like to pretend that backpackers only serve the bush, when they do not. Four out of five backpackers will never set foot onto a farm, meaning that four out of five backpackers are directly in conflict and directly in competition with young Australian workers. Given the fact that a third of them are being underpaid, they are directly putting pressure on our local jobs market. I call on the government again to do something about the endemic problem that we have in our community with the exploitation of guest workers. It is time the government supported Labor's proposals to protect workers, to make sure that any worker here in this country is paid properly and treated with respect.

Maria Vamvakinou (Calwell, Australian Labor Party) Share this | Link to this | Hansard source

Is the motion seconded?

Nick Champion (Wakefield, Australian Labor Party) Share this | Link to this | Hansard source

I second the motion and reserve my right to speak.

Alex Hawke (Mitchell, Liberal Party, Assistant Minister for Immigration and Border Protection) Share this | Link to this | Hansard source

I rise to speak to this motion. Of course, the Labor Party continually tries to create the sense of crisis in our visa system that does not exist. Broadly speaking, the 417 and 462 systems work very well in supplying a cultural experience and labour solutions to companies all around Australia where it is difficult to get labour. Australians, of course, do take advantage of this same system overseas, making a holiday in many parts of the world on this visa system.

The member for Bendigo is pretty emblematic of the current dilemma in the modern Labor Party. She does not know if she is supporting Donald Trump or Hillary Clinton; she is coming at it from both angles. She is anti-foreigners, and yet she is promoting foreign workers, even in the United Voice union on 457s. The United Voice union, of course, is the number one union that took advantage of 457 visas, including for the positions of workplace relations advisers—foreign workers coming in to advise unions on Australian workplace relations. So when we hear the Labor Party try to lecture us on the use of foreign workers, they could start with the union movement; they could start with the use of foreign workers within the union movement, because if you do not think that there are any Australians qualified to advise on the Australian workplace relations system, then you would be wrong. It is false for her to get up and say there is a crisis in our system.

Of course, the Australian government takes very seriously the issues of visa fraud, illegal work and the exploitation of foreign workers. This government has already made changes to the working holiday-maker program, which is not acknowledged in this motion. Since late 2015, the member for Bendigo—if she had bothered to look it up—would know that this government made applicants for a second-year working holiday-maker visa need to demonstrate that their three months' specified work was paid in accordance with Australian workplace law—an improvement that this government made already in 2015. This provides a strong incentive for working holiday-makers to inform themselves about pay and conditions, and discourages working holiday-makers from willingly undercutting Australian wage levels.

While the member for Bendigo calls in this motion for the government to take legislative action, she would be aware that the Department of Employment informed the government's taskforce that the government intends to amend the Fair Work Act 2009, and it will protect vulnerable workers by increasing penalties, including introducing a new and serious contravention penalty for deliberate or systemic exploitation. We will strengthen the evidence-gathering powers of the Fair Work Ombudsman, and expressly prohibit providing false or misleading information to fair work inspectors. We will introduce new provisions to capture franchises who fail to deal with exploitation by their franchisees, and expressly prohibit behaviour in which an employer pays the correct wages to an employee, but then forces them to repay an amount. These changes are already in the works.

Of course, the member for Bendigo does not want to look at sensible government improvements; she wants to create a series of false claims of hysteria and panic about our system. This government is making sensible changes to the 417 and 462 systems. We are certainly making sensible changes to the backpacker tax, and I reject the comments of the member for Bendigo on this topic. At the moment it is the Australian Labor Party that is standing up for the right of a backpacker to pay no tax or to pay less tax than Australian worker.

Opposition Members:

Opposition members interjecting—

Alex Hawke (Mitchell, Liberal Party, Assistant Minister for Immigration and Border Protection) Share this | Link to this | Hansard source

I know that gets some reaction from members opposite. You are advocating for Australian workers to be taxed higher than foreign labour. That is what you are advocating for. That is why it is hard to figure out if you are coming from the left or coming from the right. You are promoting xenophobia in this country by attacking foreign workers on 457s—deliberately knowing what you are doing in Mackay and North Queensland, attacking foreign workers in the field. At the same time you are undercutting the ability of Australians to get jobs. You are coming at it from the left and the right. Nobody knows where you are coming from in relation to these topics.

But what we do know is that this is bad for our economy. It is dangerous for our economy and for our society. 457s have a legitimate role in meeting workplace shortages and a legitimate role in meeting shortages in our economy that we are unable to fill, especially in rural and regional areas. But is not unreasonable for the Australian government to say that backpackers should pay a decent rate of tax that does not provide a disincentive but also means that Australian labour is not uncompetitive with backpacker labour. That is what this government is doing—sensible reforms in this place.

Labor is, of course, playing all politics. They are not looking at the economy or at what is best for the workers—the visa system, for rural and regional areas and also for our broader economy. I think it is emblematic of this motion that the member for Bendigo, who comes from the United Voice union, the number one union in Australia that makes use of 457s, stands up in this place and tries to condemn the government, which is actually getting on with the practical reforms that will make these visas work better and make sure that visa fraud and legality are stamped out.

Andrew Wallace (Fisher, Liberal Party) Share this | Link to this | Hansard source

I would like to point out to the member for Mitchell that this motion actually does call on the government to bring that legislation into play—this government's legislation, the great reforms he thinks they are going to do one day. Well, 'one day' is this summer period across Australia, where international young people, generally, travelling in Australia will be inundating this country coming in on 417 visas. So action on this needs to take place in the next two week. Perhaps those opposite would like to pay some attention. Rather than trying to vilify members on this side they should go back and do the work they have set up and have not yet completed. None of us on this side are surprised by that. This government has proven itself to be absolutely work-shy when it comes to getting legislation through the parliament, or doing the job that the Australian taxpayer is paying them to do.

These statistics regarding the exportation of 417 working holiday visa holders should be a source of shame for this government. Thirty-five per cent of 417 visa holders said that they were paid less than the minimum wage. We know what that means on the ground. It gives some businesses an unfair advantage against good Australian businesses doing the right thing and paying people a fair wage. Fourteen per cent said they had to pay in advance in order to get regional work—a worker pays a company in advance to get the work! If that is not an Australian I am yet to see it. Also, only 21 per cent of people signed a written agreement. Perhaps the most concerning stat is that six per cent of workers had to pay an employer to confirm that they filled their regional work requirement—pay them to do what is a statutory requirement for those businesses.

These workers are necessary. We know that. Farmers say over and over again that backpackers fill shortages in the Australian food production industry. In essence, they need those workers to get their food to market. No-one on this side is worried about that. In fact, we are taking action to support those farmers to ensure that they have access to these workers. Unfortunately, when you have a government that openly states its disregard for workers, and for workers' rights, businesses feel emboldened and free to exploit workers who do not know their rights. From young adults living in my house and from nephews and nieces who have travelled overseas and have had friends come to visit, I have firsthand knowledge of the number of young people I have seen come from family homes who have been employed in this country on a 417 and are not being paid what they deserve to be paid. The stories are there if those opposite would like to connect with someone in the community and ask the question at the barbecue they are having over Christmas. See if you have some friends who might bring some 417 visa visitors to Australia to your Christmas day and ask them how they are being paid; you will be surprised.

In 2011-12, just five per cent of dispute forms lodged with the Fair Work Ombudsman related to visa holders, while in 2015-16 that figure increased to 13 per cent. Worse yet, of the people who approached Fair Work who were visa holders in 2011-12, 23 per cent were 417 holders. By 2015-16 that number skyrocketed to 44 per cent. This is happening in our community and it is increasing, because this government quietly gives the nod to those businesses that it is okay to exploit these young people. It is okay to get an unfair advantage compared to companies doing the right thing. This government is giving them acquiescence because this legislation has not been brought on. The Fair Work Ombudsman recovered $1.37 million for 417 visa holders in 2015-16. That should give you some insight into the level of what is occurring here, because we are not talking about people who earn an enormous amount of money in these jobs. It is generally people who are lucky to be paid at base level wage. So I suggest that those opposite start getting busy, get rid of their work-shy habits, stop these underpayments that are occurring across the country, which have the flow-on effect of driving down Australian wages and conditions, and make sure that the four out of five backpackers who do not work on farms are not being exploited by businesses while this government sits idly by and watches. Let's see if we can get busy and do it before the summer period.

The Fair Work Ombudsman's inquiry into the wages and conditions of people working under the 417 working holiday visa program commenced over two years ago and raises issues that the government has since taken strong action to address. Allow me to remind the member of the positive improvements the government has already made. In 2015, the government made it illegal for people to pay for or employers to charge for a visa outcome. Established 417 visa holders who are seeking a second year visa also need to provide a payslip as proof that they are officially being paid before an additional visa is granted to them.

In 2015 the government also established Taskforce Cadena, through which the Fair Work Ombudsman and Australian Border Force can together investigate and address cases of migrant worker exploitation. Taskforce Cadena is a joint agency task force comprising the Department of Immigration and Border Protection, its operational arm, the ABF, and the Fair Work Ombudsman. Taskforce Cadena also involves collaboration with other agencies, such as the AFP, the Australian Criminal Intelligence Commission, the Australian Securities and Investments Commission and the Australian Taxation Office, as well as local law enforcement agencies.

Since its launch, Taskforce Cadena has completed more than 11 operations, resulting in the detention of at least 95 unlawful non-citizens and the execution of more than 31 warrants. Some of these matters are ongoing, with Australian Border Force investigators preparing briefs of evidence for consideration by the Commonwealth Director of Public Prosecutions. People involved in the organisation of visa fraud and illegal work can face penalties of up to 20 years imprisonment or fines up to $100,000. People involved in the exploitation of foreign workers are liable for civil penalties of up to $10,800 per breach for a person or $54,000 for a corporation.

The Turnbull government has made it clear on numerous occasions that attempts to exploit Australia's temporary visa programs will not be tolerated. The task force continues to gather intelligence across all industries where illegal work practices involving unlawful non-citizens and illegal foreign workers may be taking place. Its operations send a strong message to individuals and syndicates involved: if you are in Australia without a valid visa, if you are working in breach of your visa conditions or if you are exploiting foreign workers, you will be caught. We make no apologies for that.

Recently, the government announced that employers of working holiday-makers will be required to register with the Australian Taxation Office, ensuring that government sees how people are being employed. The government also has a comprehensive plan to protect vulnerable workers, such as migrant workers. Well before the Leader of the Opposition was talking about this issue, the government had established a Migrant Workers' Taskforce to rectify instances of exploitation, and announced new powers and funding for the Fair Work Ombudsman. Legislation to implement these commitments will be introduced early next year. In contrast, when in government, Labor had no plan to protect vulnerable workers. In fact, when the Leader of the Opposition was the relevant minister he slashed funding to the Fair Work Ombudsman by 17 per cent and cut Fair Work Ombudsman staffing by 20 per cent.

In my region of the Sunshine Coast, backpacker labour is key to the harvest of strawberries, pineapples and other fruit and vegetables. Labour on temporary visas is also vital to the survival of the dairy, horticulture and fishing industries, which would face the prospect of shutdown without it.

The coalition government put forward a fully-costed reform policy to reduce the tax rate for working holiday-makers from a proposed 32.5 per cent to 19 per cent. The coalition's reform package had come after extensive consultation with industry, had been endorsed by the National Farmers Federation, was aimed at ensuring certainty for farmers so they could plan to hire backpackers over the picking season, ensured tax rates were internationally competitive and ensured fruit and vegetables were on the table at Christmas at the most affordable prices. Thank you.

Nick Champion (Wakefield, Australian Labor Party) Share this | Link to this | Hansard source

I think that one of the problems we have that has emerged in the modern economy is this misuse of the term 'migrant labour' or 'skilled migration' compared with what is actually happening under this government, which is the operation of guest worker schemes. It does not matter whether we look at the 457 visa category, or at the 417 visa category or at the student visa categories; what we see now emerging in this country under the Turnbull government, and before that the Abbott government, is a system where in one instance large numbers of people are here on visas, ostensibly to travel, but are actually really here just to work. Or they are here ostensibly to study, but in reality are just here to work. That is the way these visa categories are now operating.

If we look at the 457 visa category, what was meant to be a small number of very skilled occupations has now got bigger and bigger, taking in hairdressers, bricklayers, electricians, auto electricians and the like. What we have is a system where workers come here, essentially as guest workers, and are vulnerable to exploitation because they have a visa hanging over their heads. We know now that there are labour hire companies that operate both in the country of origin and internally in Australia. They are often separate institutions, but set up in much the same way—in a deliberate way—to exploit these workers. They promise them the world and then extract the maximum amount of their wages out of them while they are here.

That is the way that this system is being utilised and abused, not by an employer but by an economic system where the head contractor or the head institution offloads it to a subcontractor, who offloads it to a subcontractor and so on, creating this chain where it is very difficult to hold anybody accountable. But, of course, we know from the member for Bendigo's previous motions and from my previous motions in this House that this is not a new problem, that this has existed in the retail industry and in the food production and agriculture industries. And, bizarrely, now we hear in this House—I almost fell off my chair!—that it is even in social work, in the residential care of vulnerable youth.

What we have on the one hand is a sophisticated and manipulative system, which sets out to deliberately evade the legislative intent of this parliament and all of our laws, being operated by very large institutions in our country—chicken companies, hotels, retailers and the like—who are completely blase about the application of law or even publicity around this issue. They carry on regardless, with a merry disregard for this parliament, for community standards and even for the government.

The Turnbull government to its credit, as we heard from the previous speaker, announced a task force and the like. My only quibble with that is that he said it is a 'migrant task force'. These people are not migrants. Migrants come, they settle, they have permanent residency and they have the security of their visa. What we are talking about here are guest workers. They are citizens of another country and they are allowed to work here under a strict set of visa requirements, which are being systemically abused.

We have to have a good hard look at it and we need to take action on it, not the sort of rhetorical action that we see out of this government, which is very good at beating up on unions and very good at having legislative instruments beating up on unions. It is keen to take up this parliament's time on those matters, but it is not very keen to take up this parliament's time on legislative instruments that would help and protect migrant workers and, in doing so, shut down these rackets—and that is what they are: they are organised rackets to exploit these poor workers—and protect Australian workers, who, as a consequence, face unfair competition because they are being paid award rates while these other workers are being systemically ripped off.

Stuart Robert (Fadden, Liberal Party, Minister for Human Services) Share this | Link to this | Hansard source

It is always a pleasure to follow the member for Wakefield, who, on issues of workers' rights, does actually mean well and has always tried to do the right thing. However, the problem we have is that we have a motion moved by the member for Bendigo, Ms Chesters, and the member for Bendigo is not here. It is the first time in a parliament that I have seen a member move a motion, which they are apparently passionate about, and not even bother to stay for the entire—

Opposition Member:

An opposition member interjecting—

Stuart Robert (Fadden, Liberal Party, Minister for Human Services) Share this | Link to this | Hansard source

It is 30 minutes! If the member were that passionate about the motion, the member would stay, the member would listen to the contributions and the member would support their own motion. It is the first time in four terms—member for Wakefield, you came in with me in 2007—

Nick Champion (Wakefield, Australian Labor Party) Share this | Link to this | Hansard source

I have been a lot less successful.

Maria Vamvakinou (Calwell, Australian Labor Party) Share this | Link to this | Hansard source

Order! The level of interjection is too high.

Stuart Robert (Fadden, Liberal Party, Minister for Human Services) Share this | Link to this | Hansard source

Has the member for Wakefield ever seen someone not stay for debate on their own motion? How little respect would someone have to have for their own motion that they would not even bother to stay and listen to the debate? This is quite extraordinary. I have never seen this. I have never seen someone not stay for debate of their motion in parliament.

We came into parliament to raise issues of concern. The member for Wakefield has sat through this entire debate, to his credit. He has spoken about his personal concerns for workers, which he has consistently been doing for the last nine years, to his credit, and he is here. The member for Bendigo has done nothing in her life but been a member of the union—and I say that without contempt or disparagement. This is an issue that, apparently, she believes is important and she gave her speech and then left. She gave it five minutes of her time. That just shows you the contempt she holds for her own motion. She has absolute and utter contempt for it. It just shows that it is all politics and no substance.

Let us talk about substance. Let us go to the substance of the 417 visa issues that were raised here in the federal parliament by the member who could not even be bothered to stay for the debate on her own motion. She did not even bother to stay for the debate on her own motion. What is the point of her coming into federal parliament to debate and argue issues when she does not even bother to stay? Let us go to the substantive point of the motion. The Fair Work Ombudsman commenced work over two years ago and raised a range of issues that the government has actually taken strong action on. My colleague the member for Fisher outlined some of those actions but let me reiterate them because they go to the substance of what the government is doing, as opposed to what the member for Bendigo is not doing—as in not even bothering to be here.

In 2015, the government made it illegal to pay or charge for a visa outcome, requiring 417 visa holders seeking a second year on their visa to provide a pay slip as proof. If their pay slip shows they are not being paid a certain amount, they cannot get an extension of their visa. In 2015, the government also established Taskforce Cadena, through which the Fair Work Ombudsman and the Australian Border Force can together investigate and address cases of worker exploitation. Recently, the government also announced that employers of working holiday-makers will be required to register with the ATO, ensuring that the government sees that people are indeed being employed. Well before the Leader of the Opposition was suddenly talking about the issue, the government had established a worker task force to rectify instances of exploitation and had announced new powers and funding for the Fair Work Ombudsman. This has been going on for over 12 months. This is substantive action for over 12 months to deal with issues.

The member for Bendigo could not even be bothered being here for her motion. That is how little regard she has for the issue. And then let us look at what the Leader of the Opposition has done or, more importantly, has not done. Show me your actions, and I will show you the value of what you say. Your words are proven true by your actions. For the member for Bendigo, who did not even bother to stay here, her actions show her true belief.

When Labor was in government, what plans were there to protect these vulnerable workers? Zero. In fact, when the Leader of the Opposition was the relevant minister, the person with the power, he slashed funding to the Fair Work Ombudsman by 17 per cent and cut Fair Work Ombudsman staffing by 20 per cent. That is what the Leader of the Opposition did. Those were his actions to back up his lack of worth. That was the importance he put on this issue. Labor can say what they like now. They can puff their chests up and talk about the action they are going to take, but, when the Leader of the Opposition was the minister, he cut staffing and did nothing. The member for Bendigo could not even be bothered to stay. Those are Labor's actions and that is Labor's worth. (Time expired)

Maria Vamvakinou (Calwell, Australian Labor Party) Share this | Link to this | Hansard source

The time allotted for this debate has expired. The debate is adjourned, and the resumption of the debate will be made an order of the day for the next sitting.

Sitting suspended from 13:36 to 16:00