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Caps on sc457 set to be removed

The Coalition government is pressing ahead with its promise to cut union rate tape on 457 visas.The ABC reports that the government has lifted the cap on sponsors that was introduced by the previous labour government.

The sc457 visa is designed to be responsive to employer needs for workers in particular industries and regions. Before the last election, the unions and the previous government claimed that there was widespread abuse of the program and as such foreigners were being favoured over Australians.

Under union pressure labour had introduced a series of measures which made it more difficult for employers to hire foreign workers. Among them was a cap on the number of approved nominations for sponsors.

Under the changes, employers are expected to be allowed to hire ‘any number of workers’ provided the relevant nomination, sponsorship and visa criteria are properly met. Details of the changes are expected to be released later today by the office of Senator Michaelia Cash, Assistant Minister for Immigration and Border Protection and Minister Assisting the Prime Minister for Women.

The Migration Alliance welcomes the changes. The sc457 has to be driven by the findings of the Australian Productivity Commission as well as industry bodies who are in tune with actual needs of employers. The changes will help lower employment costs by removing unnecessary red-tape and as such help expanding businesses meet their needs for skilled workers more quickly. Strong and growing local businesses will help increase employment opportunities in Australia.”

The Australian Mines and Metals Association when commenting on the changes last year, characterised the 2013 amendments to the sc457 program as , “cynical and opportunistic, and some of the argument from supporters of labour market testing as bordering on xenophobia.”

Unions maintain that the cap is necessary to protect Australian workers at a time of high domestic unemployment rates. “What we are seeing is massive job losses in Australian manufacturing, and in mining, construction and services and at the same time the government is opening the flood gates for a larger number of temporary overseas workers,” said the CFMEU’s Dave Noonan in an interview with the ABC. Mr Noonan stated that the union is not against migration but is against the shift to temporary migration as it believes this has serious consequences for Australian workers, as it undermines job security; and for temporary migrants, as they will be inherently vulnerable to exploitation.

For details of the ABC story please follow this link: 

http://www.abc.net.au/news/2014-03-08/coalition-govt-presses-ahead-with-457-changes/5307790

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  • Guest
    jerry Wednesday, 12 March 2014

    you can help a lot of people by removing the IELTS exam.:)

  • Guest
    steve Wednesday, 12 March 2014

    Paul 'Interesting comments regarding the 457 visa.' Couldn't agree more, particularly some of yours. eg 'It would make much more sense to ensure all employees whether local or overseas 457 visa holders were paid a minimum of award rates.'

    Whoooo, now you have let the real cat out of the bag. That's what business is trying to do by lifting the cap and 'freeing up' the labour market. ie Increase the supply of labour so as to reduce the price thereof. Neocon Economics 101, more supply = lower price, of labour.

    You submit 'The point that has been missed totally missed (sic) is that employers provide the job opportunities'.

    Agreed employers do provide jobs obviously, but the point you seem to miss is the other side of the equation that employers make no profit unless workers work their jobs.
    Employers often get much of their profits from the difference between the value of the work done for them and the level of wages they pay for that work. NE101 calls it 'the surplus value of labour.'

    So there is an obvious tug of war between labour and capital, they are co-dependent on each other. To say one side is more worthy than the other and so should be given special consideration is arguably ideological nonsense. Employers are not out there to be nice to workers by ensuring they get fair wages and conditions they are there to maximize profits for their shareholders - often not Australians at all!

    To be fair I do agree with you that the 457 visa minimum pay scales are out of whack with reality but I don't agree it's a conspiracy to raise the wages of local workers or that it is a side effect of the greed of the unions. Also I think this Government will lower them drastically as soon as the 457 migrant workers scheme gets too established to be wound back.

    You also say "The 457 Program offers the employers a supply of experienced workers to ensure the business can remain in business and protect their current employees from the chance of the business closing because it cannot produce the products or services to the needs of the market."

    Please let me rephrase your statement to better fit the facts and current capital markets practice as I see it.

    "The 457 Program now offers struggling local businesses and profitable multinational and national companies who are used to the cost and 'flexibility' advantages of migrant labour schemes operating in other countries the ability to better erode Australian awards and conditions through access to an uncapped supply of non unionised labour, and a more 'flexible' work force unlikely to protest when their awards or conditions are reduced.

    The way I see it, over many decades, there have at times, been periods of attack on the wages and conditions of Australian workers and we are again experiencing one, driven this time not by the interests of Australian employers but by global capital that has become accustomed to initiating, accessing and abusing migrant worker schemes, especially in developing countries that can't defend their institutions (including in some 1st world countries). Hopefully we can defend our industrial relations institutions and redress the shift in power away from labour to capital that the 457 migrant worker scheme is obviously designed in the long term to achieve as it has in many other countries.

    It is interesting to note that Australia is not a signature to the United Nations Convention on the Protection of the Rights of All Migrant Workers and Members of Their Families. If it were Paul, a number of your suggestions would be not be able to be implemented. For details of various countries' abuse of the growing number of migrant workers despite sophisticated legal systems cf http://en.wikipedia.org/wiki/Migrant_worker

  • Guest
    John Wednesday, 12 March 2014

    Sorry Mark but I need to set a few things straight:
    1. Ther is no limit to the number of genuine dependants (secondary applicants) under current legislation but I do agree that you would not expect anyone to leave behind dependants to 'fend for themselves'.
    2. State schools in Western Australia do not charge fees for temporary residents (although this will change in 2015).
    3. Medicare benefits can be provided for visa holders who come from a country which has reciprocal health care benefits with Australia. Visa holders from these countries can apply for a Medicare Card when they arrive in Australia and if granted then they meet the health care requirements of condition 8501.
    4. I am not aware of any tax legislation stating that 457 visa holders have to pay far higher taxes than Australian Citizens or PR's.
    5. I don't get your comments about the new LEGENDcom or 457 salary levels as I did not mention anything about them even although I am very familiar with them.
    Finally, I find your childish comments like 'proudly boast', embarrassing for you', purported RMA', 'simply shameful', 'pretence of RMA', very offensive.
    Were you drunk or on something when you wrote your comments?

  • Guest
    Do An Wednesday, 12 March 2014

    You've got to be careful when you talk about IELTS for some lawyer migration agents were quite upset about cancellation of IELTS imposition to none-lawyer agents. They may have thought that driving out none-lawyer agents of migration filed would make full of oysters in the field for them. (laughter)

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