If you’re going to hit the panic button, it helps if that button actually achieves something and does it effectively. What’s surprising about yesterday’s 457 visa “abolition” announcement from the government is that it stands a relatively good chance of achieving its political goal, while having minimal impact on the economy.
It is, of course, a profound act of hypocrisy from Turnbull and the rest of his party. When Julia Gillard started the bashing of foreign workers back in 2013 by making changes to the 457 system, Turnbull, like his colleagues, defended them to the hilt as you’d expect the stout tribunes of the business sector to do. But nearly four years later, the visas have “lost credibility” — even though the Coalition has been in government for all but six months of the intervening period. Moreover, while the system was apparently working sufficiently well in 2013 that there was no need for significant change, it now turns out that Bill Shorten had by that time — at least according to Turnbull — opened the floodgates. It’s all very like the middle-class welfare cuts the Liberals denounced when in opposition — but once in government, they went much further. Or, at least, that’s what they want voters to think.
[Despite scandals, 457s help a changing economy]
In fact, 457 visas have been an important mechanism for the workforce to respond to changing demand patterns — since the Rudd years, construction, mining and health 457s have been replaced with tech sector and hospitality industry 457s as the most common visas, reflecting a changing economy. And, yes, they’ve also been persistently rorted by some employers that have evaded market testing requirements and exploited 457 workers who don’t know their rights, at the expense of Australian workers. What’s needed is a tightening, not the removal, of the temporary worker system and a reversal of the ballooning categories in which visas are allowed.
And, in fact, that’s more or less what the government is aiming for — but under the pretence of abolishing the whole scheme. Call these new visas 754s — different name, same product. A couple of hundred occupations, many apparently cut and pasted from the jobs list for the Golgafrincham “B” ark, have been removed from the long list of applicable jobs. Variety artists. Homeopaths. Judges. IP lawyers. Funeral directors. Dog racing officials. Intelligence officers (!?). But the two sectors currently using 457s the most, tech and hospitality, don’t appear to face significant changes: only a small number of jobs have been removed from the tech industry list; chefs, cooks and restaurant managers remain on the list, as do medical and health occupations — and a huge number of trades positions.
Applicants will need demonstrated experience in the occupation and higher standards of English language proficiency and employers will face “mandatory labour market testing, unless an international obligation applies” and “strengthened requirement for employers to contribute to training Australian workers”. But Tuesday’s announcement was notably light on what exactly the “strengthened requirements” on training would entail, and it said nothing about the fact that labour market testing — already much honoured in the breach rather than the observance — is already “mandatory”.
[Why temporary migration is a permanent thing]
In short, the changes will have minimal effect but will might make it slightly harder for employers to exploit the system. And the renaming will allow the government to claim it has gone one further than Labor — you’ll be hearing the word “abolish” a lot. Business is broadly on board with this approach — although the government won’t thank them for being less than subtle about how this is primarily a renaming of a program that had earned a bad reputation. “An Opportunity To Rebuild Public Confidence,” the Business Council called it, because “the capacity for businesses to hire temporary workers to fill genuine skill shortages has been an overall boon for Australia.” “The 457 visa system was a highly valued program but misunderstandings of its use and exaggerations of its misuse led it to become a lightning rod for anti-migration sentiments,” said Innes Willox, head of employer group AIG. “The temporary skilled visa program should now be considered as settled without the need for further reviews and disruptive policy change.”
The renaming is the first of a series of steps the government will take to cater to populist sentiment within the community, with immigration restrictions set to be further increased. Unlike with 457s, expect the immigration changes to be more substantive. While business supports high immigration, it’s not an issue that directly affects their operations, so the government will have a freer hand to plumb the deepening waters of xenophobia in the electorate.
your dead set wrong saying anybody who opposes 457 visas is racist, these visas have been used by employers to import cheap foreign scab labour
employment in australia should be for australian CITIZENS , it does not matter whether they were born here or came here as migrants, they simply should be for Aust Citizens or for people with permanent residency, not to be used by corrupt employers so they can pay cheap scab labour rates at the expense of aust citizens
the Department won’t grant a visa unless substancial proof is provided that the visa applicant will be paid a market salary rate equivalent to an Australian. The easiest way to prove this is simply to provide evidence of what a current equivalent Australian employee in that business is getting paid. If the visa holder is then subsequently underpaid then that is a matter for the FWO to take action against the employer. It appears that most Australians are probably too lazy to do certain jobs anymore e.g. cooks and chefs – the hospitality sector is crying out for workers but Australians dont want to give up there weekend nights.
If this proof is ever actually required, why then have there been constant and credible stories of widespread rorting of this visa?
The bludgers in the hospitality sector who want to make big bucks but keep bugger-all for their workers are only exceeded in odiousness by the wealthy (who would never stoop to such work themselves) who expect to wine and dine whenever they want for as cheap as possible.
Anyone outside of the wealthy urban elite with their eyes open would have stories of non-citizen workers getting ripped off by unethical Australian employers. It’s rampant, and not restricted to 457 visas, and it should be prosecuted.
thats why the FWO needs more funding to combat that, but the proposed changes are likely to make things worse. The more insecure a temporary visa worker is the less likely they are to complain.
It seems to me that this is nonsense. There are many jobs which Australians cannot get, but which are on the list. Cooks be stuffed. A top line managing chef, maybe. The issue of wages rorts has NOT been addressed by the FWO, by unions, yes. The other point is that these dishonest businesses are sending honest ones broke by gaining an unfair advantage. Where is the independent “work test?”
…and that’s exactly the sort of ill-informed comment that is the reason the government is making a change, that isn’t really a change but looks like it is.
In the industry I work in (software development) there are no where near enough Australian citizens with the skills we need. Cairns50 do you prefer that we send all our work offshore than bring in a few bright people from overseas to fill our vacancies?
who help train and transfer skills to Australians, with most becoming Australians themselves down the track…
Won’t be allowed to any more, one of dutton’s nasty bits added on…
“There are no where near enough Australian citizens with the skills we need”
Or is that:
“There are nowhere near enough Australian citizens who will work for far less than the starting salary of an Australian IT graduate”
http://www.smh.com.au/business/workplace-relations/proportion-of-indian-it-workers-on-457-visas-rock-bottom-pay-triples-20161202-gt2nso.html
Why does Australia not have people with the skills necessary . Is it because many able students can’t afford to get the qualifications that are essential to bring Australia into the 21st century? Why is it that so many of the politicians who had Whitlam’s free university education seem to think that education is a private benefit and should be paid for by the individual? Not even British nationals like Tony Abbott had to pay. If we can pay for submarines we can sent all capable students to university without financial distress.
Have to agree with Cairns50, Bernard. These visas should be limited to ultra high-skilled, essential roles. I.e: Not cooks!!
BK is a huge centrist and won’t hear anything against the god Reform!.
I’ll go a step further to prove your point: I don’t like the 457 program or this new one because it creates an underclass of foreign slaves without full work rights, stealing their wages and making things worse for everyone but the business owner.
Yeah. If you can pay the overheads of bringing someone from overseas and yet they’re still cheaper than local workers, then someone’s losing out and it’s definitely not the boss or the middleman!
Could someone please explain for me the reason there are so many Taxi drivers of Indian background at the Rank in Kingston in the ACT?? Is there a shortage of Taxi drivers in Australia?
because its a shitty job that most people dont want to do anymore? Take an Uber instead.
Because the big taxi companies have been tightening the screws for years and now it’s hard to make a decent living driving taxis. Only the desperate will take it – not a matter of bludgeing Australian workers, but of bludger bosses who want more and more of the pie.
Because Sri Lankan and Indian drivers speak decent English mostly.
Taxi drivers will generally have migrated as family members, students or refugees – it’s not a job that you can get either a 457 or permanent residency visa for (obviously), just an entirely basic job which you can do even if your English is bad and you don’t have any other marketable skills.
Sure BK, it is bullshit in that while ‘abolishing’ 457’s they created a new class of visa, so the effect is really just to regulate somewhat more effectively the Harbour Bridge wide gap in immigration rorting.
But it is hardly racist to insist that your children should be given jobs in preference to imported labour. No country allows open slather, but ours was as close as any. This was being rorted a mile high and wide, and was used by companies to avoid training responsibilities and to pay below real market wages.
Even in IT and hospitality, it is impossible to believe that the market wasn’t being constantly rorted by 457’s. Graduates and highly experienced locals have enormous difficulty getting work in their trained profession, primarily because they can fill jobs by a very cavalier approach to ‘labour-market testing’. Any such tests worth their salt would have to be accompanied by training commitments to local labour, but they never are.
As for hospitality, given that every second show on TV is about budding chefs, and that the job is very much something that can be learned on the job, I fail to see how we could be short of chefs. Oh, except for the fact that they are paid shite wages and work unbelievable hours, many of them not recompensed appropriately.
Your headline writer is wrong to suggest this is racist.
Tell Australian nursing graduates who can’t find jobs because of the employment of overseas trained nurses on 457 visas that the system is fair. According to Bernard Keane medical professions will remain on the list. I am not racist and believe overseas worker immigration has been designed and encouraged over the years by Coalition Governments to reduce wages.
Next step is to end free trade deals with slave countries so slavery isn’t imported with their el cheapo tariff-free goods.
Precisely, I work in IT and was unemployed for 15 months because of the high number of foreign workers who would accept lower wages, I know this because eventually I got a job working with some of them, they get off planes and are almost immediately employed doing something alot of young Australians could easily be trained to do.
Its ridiculous to call everyone who has a problem with this a racist, get out more Bernard you dont know what youre talking about
No one does hypocrisy quite like Malcolm – he can make it seem a virtue.