Saturday 15 October 2016

Fair Work ombudsman report reveals widespread exploitation, underpayment of 417 visa holders


Posted about 6 hours ago
The Fair Work ombudsman has released a damning report into the experiences of 417 working holiday visa holders, revealing serious exploitation of some backpackers.
The report identified particular concerns about the conditions for backpackers who complete 88 days of paid work in regional Australia in order to obtain a second-year visa.
Fair Work surveyed more than 4,000 overseas workers who completed the 88-day regional work requirement, and found 66 per cent felt employers took advantage of 417 visa holders by underpaying them.
Most of those surveyed also agreed workers were unlikely to complain about their working conditions for fear of their work not being signed off by the employer, and therefore being denied a second-year visa.
The Fair Work statement on 417 visa holders is the result of a two-year national inquiry.
It also follows an ABC Four Corners investigation last year that revealed migrant workers were being exploited by some labour hire companies in the horticulture industry.
A number of serious cases of exploitation have been investigated by Fair Work over the past two years, in some cases resulting in legal action.
This week, legal action started in relation to the underpayment of workers at a mushroom farm south of Brisbane, in which workers are alleged to have been short-changed by almost $650,000.

Dodgy operators need to be 'stamped out'

Key findings:

The inquiry found concerning patterns of behaviour with respect to the treatment of 417 visa-holders, including:
  • Underpayment and non-payment of wages
  • Sexual harassment and workplace health and safety issues
  • Exploitative workforce cultures and behaviours in isolated and remote workplaces
  • Employers and hostels withholding passports without authority
  • Employers engaging in sophisticated labour supply chains involving sham contracting, with visa holders being engaged as contractors and not employees
  • Employers making unlawful deductions from wages and unlawfully requiring visa holders to spend part or all of their wages in an unreasonable manner

Fair Work Ombudsman Natalie James said she had been surprised that most backpackers surveyed said they would not make a complaint about underpayment or exploitation.
"That's why it's so important that working holiday visa concerns do come to us, so that we can take appropriate action," she said.
Ms James said most farmers wanted to do the right thing by their workers, and dodgy labour hire contractors that targeted vulnerable holiday makers needed to be held to account.
"We can and will take legal action against entities that we find breaching the law," she said.
"[But] one of the things that troubles us about these labour hire companies is … we turn up at their registered business address and that's not their registered business address.
"They disappear like a puff of smoke, and those are the sorts of operators that we really need to stamp out because they're not interested in doing the right thing.
"They have set up a business that is reliant on exploitation of workers."
But Ms James stopped short of suggesting the 417 visa system was flawed.
"What the Fair Work Ombudsman is suggesting is that the Government, along with the people who benefit from backpacker labour, need to work together to make sure the settings are right with this visa," she said.
"So we need to look at whether we need to refine aspects of the visa to make sure that when workers are doing these 88 days of regional work, they are paid appropriately."

Contractors need to be certified, grower body says

Meanwhile, growers in the horticultural industry are calling for reform to protect workers and farmers.
Anthony Staatz represents Lockyer Valley Growers, south-west of Brisbane, and he wants a certification process established, where contractors become licensed to supply labour.
"They'd need to go through a licensing program with Fair Work Australia or a government body for that certification," Mr Staatz said.
"Then growers would know straight up if they've got that certification and that they're meeting their obligations.
"If growers choose to go outside those guidelines then, you know, they should be held accountable for anything that isn't done properly."
Mr Staatz expressed concern that a significant majority of backpackers completing the 88-day requirement felt they were being underpaid.
"I'd hate to think that it's that many but look, any exploitation of workers is not fair and it's not on, and to be effective we need a change because obviously the current system isn't doing the job."
The Fair Work Ombudsman will now make recommendations to the Federal Government's Migrant Worker Taskforce for consideration. 

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