The ABC reports that thousands of Taiwanese workers employed in some Australian abattoirs are being underpaid, abused and encouraged not to pay tax. It is reported that these abattoirs are using labour hire companies that hire sub-agents to recruit east Asian backpackers who readily fill-out all forms they are given (including ABN application forms) believing it’s just due process for getting the work.

The Meatworkers’ Union have made calls to disallow sc417 visa holders to engage in work on the basis of subcontracting by using ABNs. It says that this has led to workers being underpaid and abused. The Union wants workers to be hired directly and paid at the same rate as Australian workers.

 “We’re talking about excessive hours of work…gross underpayment…mistreatment…allegations of sexual harassment by some of the contract bosses…Not even half the minimum wage is being paid to these workers’’ says Grant Courtney, Secretary Meatworkers Union (Newcastle) who has reportedly been investigating the issue for the last two years.

The report specifically alleges that Primo, one of Australia’s leading abattoirs, uses specialised labour hire companies like Scottwell International to employ the Asian backpackers. Scottwell International however did not respond to the ABC queries. However, Primo has denied the allegation in a statement but indicated that it will investigation the matter:

“Allegations of workers being encouraged not to pay tax are untrue. We do not hire anyone under a 417 visa. We do hire the services of labour hire agencies…It may be more appropriate to address…them.” 

The ABC report does not indicate if Primo’s statement mentions what Primo will do if it finds that any of the allegations are true.

It is estimated that some 10,000 sc417 visa holders work in this industry.

For the full story please refer to this link: http://www.abc.net.au/news/2014-03-06/taiwanese-meatworkers-harassed-told-not-to-pay-tax-unions-say/5304258