The powerful Construction Forestry Mining and Energy Union claims firms hiring foreign labour are exploiting local laws to hire foreign tradies cheap. Source: News Limited
A SHARP jump in the number of foreign 'tradies' coming to Australia has sparked calls for a freeze in temporary work visas - amid signs a growing number of employers are rorting immigration and workplace laws.
Despite sluggish conditions in construction and mining, nearly 5000 temporary skilled work 457 visas were granted to carpenters, electricians, tilers, plumbers, scaffolders, cooks and other ''trades occupations'' in the four months to October 31 - a staggering 57.2 per cent increase on the same period in 2011.
The powerful Construction Forestry Mining and Energy Union claims firms hiring foreign labour are exploiting local laws - with one tiling firm alleged to have underpaid its mainly Korean workforce by more than $5 million since 2006.
But the Immigration Department has stepped up its policing role and slapped 134 penalties and sanctions on companies for rorting 457 visa laws in the six months to December 31.
This is nearly the same number applied for the previous full year - giving weight to arguments that a growing number of firms are abusing the temporary visa system.
At the start of a bruising election year - and with jobs policy to feature prominently in party campaigning - the CFMEU has called for a ''temporary freeze'' in the use of 457s to recruit tradies. One of Labor's factional convenors, Doug Cameron, has backed calls for a ''hard-headed assessment'' of the immigration scheme.
Nearly 26,000 visas in the 457 class were handed out between July 1 and October 31 2012 - an increase of 13.4 per cent on the previous year.
The controversial visa allows firms to ''sponsor'' foreign workers provided they can demonstrate the need to hire from overseas to fill skills shortages.
Mining firms in West Australia have been major users of 457 visas while some of Australia's celebrity chefs are pushing for an easing of visa restrictions so they can bring in more foreign labour to plug labour shortages in the nation's best restaurants.
But the CFMEU has taken aim at the Gillard government and says it is effectively ignoring Labor's own policy platform on the issue.
''The fact that the government is allowing a blowout in 457 and other temporary work visas when tens of thousands of construction jobs are being lost is just crazy policy,'' said Dave Noonan, national secretary of the CFMEU's construction division.
Australian workers ''will not cop employers using cheap overseas labour while their mates who have the skills and want work are told that there are no jobs'', Mr Noonan said.
He said too many employers ''are rorting the visa system to get cheap compliant labour''.
Labor's left faction convenor, Doug Cameron, said there should a ''reassessment of the numbers of 457s required given the on-going downturn in manufacturing, building and construction''.
''There has to be a hard-headed analysis on the need for 457 visas,'' Senator Cameron said.
But a spokesman for Immigration Minister Chris Bowen said the number of 457 visas across all five skill levels in construction actually fell - from 4,617 to 4,442 - in the first half of this financial year compared to 2011/12.
Despite the overall increase in 457 visas for trades occupations, the minister's spokesman said it would be ''irresponsible'' to shut down the 457 program.
''The government's first priority is always ensuring jobs for Australian workers. The 457 visa program is designed to address genuine labour shortages that cannot be met from the Australian labour market and we believe we have this balance right,'' he said.
The CFMEU is planning to launch court action against Queensland-based Echo Tiles, which employs around 50 mainly Korean workers around Brisbane and the Gold Coast.
An audit of the firm - conducted by the CFMEU under its agreement with Echo - claims the company has allegedly been underpaying its workforce by more than $5 million since 2006.
Chartered accountant Patrick Hoiberg believes Echo breached industrial laws by underpaying its workers with non-payment of holiday and sick pay, travel allowances and other entitlements.
Echo's principal director Mr Phillip Kang told News Limited he strongly disagreed with the CFMEU's allegations about under payments, declaring they had "incorrect information".
"If there was any incorrect payments made, this would have been noted by both Fairwork Australia and Immigration when they conducted their regular audits, but no such discrepancies were noted," he said in a statement.
"We strongly feel we have been victimised and bullied by the CFMEU, specifically targeted by them for having foreign workers on our staff."
Number of applications granted in 2011-12 and 2012-13 to October 31:
2011/12............2012/13....% change
Skill Level 3.....3,100................4,880.......57.2 per cent
(Source: Dept of Immigration)
Note: Skill Level 3 represents "trades occupations" including the following: carpentry, electrician, plumbing, tiler, painter, mechanic, welder, sheet metal fabricator, glazier, plasterer
Top eight citizenship countries for primary applications
...............................................% change from 2011/12
United Kingdom ....5,450.......-6.5 per cent
India.......................5,130.......25.4 per cent
Ireland....................2,640.......30.7 per cent
Phillipines..............1,850......19.9 per cent
USA........................1,590......-4.6 per cent
China......................1,260......72.8 per cent
Canada...................600.........-10.7 per cent
Korea.....................510.........98.1 per cent
(Source: Dept of Immigration)
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