Business groups, government differ over 457 visa tightening

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By SAT business correspondent

Melbourne: Business groups have slammed the federal government’s tightening of temporary 457 skilled – worker visas. The Coalition has alleged union pressure and the unions have branded the 457 visa as an easy route to permanent residency. The 457 was seen as a life line for the resources boom and its tightening industry group’s suspect will harm growth.
The temporary skilled work (subclass 457) program will be reformed in response to the changing needs of the Australian economy and domestic employment market, Minister for Immigration and Citizenship Brendan O’Connor announced in a media release on 23rd February. The move aimed at stimulating the local labour market has been described by the Minister as “…a set of changes to the 457 program to ensure employers give Australian workers a fair go.’
‘It has become clear, however, that the growth in the 457 program is out of step with those skills shortages, and the government has evidence that some employers – and I emphasise that word, some – are using 457 visas to discriminate against locals. This cannot continue, he said.
Meanwhile, the Australian Council of Trade Unions (ACTU) secretary Dave Oliver supporting the 457 visa changes says, “ unions had long-standing concerns that the 457 visa system, used to import temporary workers was being over-used by unscrupulous employers at the expense of local workers.

“We do not support 457 visas, and have serious questions about the number being granted in recent years, given the slowdown in the Australian economy, particularly in the construction sector,” Mr Oliver said.
The seven changes in 457 visas are as follows:
– Employers must demonstrate that they are not nominating positions where a genuine shortage does not exist
– The English language requirements for certain positions have been raised
– The enforceability of existing training requirements for businesses that use the program will be strengthened
– The market salary exemption will rise from $180 000 to $250 000
– On-hire arrangements of 457 visa workers will be restricted
– Compliance and enforcement powers will be beefed up to stop employers who have routinely abused the 457 system
– Stakeholders will be consulted to ensure market rate provisions more effectively protect local employment.
The differing views on the 457 visa changes between business and the government are quite wide. This is evident from the Business Council of Australia’s media release on 29th February titled, “Red Tape Not the Answer on Skills”.
“The changes to 457 visa arrangements announced by the federal government today are a classic regulatory overreach that risks damaging the competitiveness and viability of important projects and businesses,” Business Council of Australia Chief Executive Jennifer Westacott said.
“Where is the evidence of widespread and systematic abuse of the system that warrants new red tape being imposed on all businesses – businesses that are investing in Australia’s economy, but needing short-term migration to help them do that by filling temporary skills shortages?
“We acknowledge the importance of the integrity of the scheme for its longevity and that enforcement is a necessary part of that.
“Nevertheless, unwarranted red tape and restrictions on the scheme only serve to work against business investment and economic growth and shouldn’t be a recourse to pacifying those who are against temporary migration,” she said.
Temporary work (skilled) (subclass 457) visa details are available on the Department of Immigration and Citizenship’s website www.immi.gov.au
SOURCE: SAT March 2013

One Response

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