Temporary Overseas Workers

Stamped page of passport showing entry into Australia

Unions believe that all workers in Australia, no matter where they’re from, should have equal rights to decent pay and conditions and to be treated fairly at work.


There are many visa programs in Australia under which overseas residents gain the right to work in Australia on a temporary basis.

While the inflow of temporary overseas workers increased rapidly under the former Howard Government as the economy grew, the GFC has seen a large drop in numbers. However, there continues to be a steady movement of temporary overseas workers to Australia and the current decline is not expected to continue over the longer term.

Vulnerable to exploitation

Since 2000 there has been a significant increase in the proportion of temporary workers coming from developing countries. In 2007, the two fastest growing categories by nationality of workers on 457 visas were China and the Philippines.  In addition, it is only in more recent years that Australia has entered into working holiday arrangements with developing countries such as Indonesia and Bangladesh.

Workers from these countries tend to be at greater risk of being exploited by unscrupulous recruitment and migration agents and employers through:
  • The potential for recruitment and/or migration agents to provide misinformation during the recruitment process;
  • Language barriers;
  • A lack of traditional support and family networks in Australia;
  • Unfamiliarity with the way the Australian legal and administrative system works; and
  • A lack of knowledge of their rights under Australian law and low rates of union membership.

Temporary Overseas Workers (457 Visas)
This is the most popular temporary skilled employment visa. Employers can sponsor overseas workers in occupations deemed by the Department of Immigration and Citizenship (DIAC) to be in demand, for up to four years. It is an uncapped temporary visa program entirely driven by employer demand.

The explosion in the number of 457 visas issued in recent years, along with a shift in source countries and increased employer demand for workers with lower levels of skills, has placed enormous pressure on what was already a deeply flawed temporary migration scheme.

Workers on 457 visas have been underpaid, abused and subjected to sub-standard conditions of work. Most cases of abuse have tended to involve trades level 457 visa holders with little or no English language skills who often lacked the technical skills they are supposed to have to be eligible for a 457 visa.
At the same time, the 457 visa program has undermined the Australian labour market by enabling employers who are unable to attract local labour as a result of offering poor wages and conditions, or who are unwilling to train workers in areas of skills needs, to sponsor workers from overseas.

Unions have been working hard to ensure that the 457 visa program recognises and protects the rights of temporary overseas workers and their families, and can’t be used to undercut wages and working conditions in Australia.

Pacific Seasonal Worker Pilot Scheme
The Rudd Government announced in late 2007 that up to 2,500 visas will be granted over three years providing workers from the Pacific Islands with the opportunity to work in the horticultural industry in regional Australia for up to seven months in every 12 month period where there is a demonstrated unmet demand for labour.

The program is aimed at both assisting Australian employers find labour and contributing to Australia’s Pacific region economic development objectives. It has also been used by the Australian Government during its negotiations with Pacific countries over a regional free trade agreement.

Key facts

  • In 2003, it was estimated that about 2.3 percent of the Australian workforce is made up of people on temporary working visas  (around 220,000 workers).
  • Since 2000-1, the number of working holiday visas has more than doubled (from 76,570 to 157,574) and the number of 457 visas issued has almost tripled (from 40,136 to 110,570).
  • Demand for new temporary overseas workers has declined sharply since the global downturn, with a 33 per cent drop in applications for subclass 457 visas between September 2008 and February 2009 Australia-wide.

What’s next
Global economic, social, political and demographic trends suggest that international labour migration is likely to increase in the future. A key issue is how these movements are effectively regulated at a bilateral, regional and multilateral level.

In 2008, the Labor Government supported a review into the integrity of the 457 scheme (the Deegan Review), which produced a raft of recommendations aimed at restoring integrity to the 457 visa program. Of particular importance is the recommendation that workers on 457 visas be paid market rates.  The Government is yet to respond to key recommendations of the Deegan Review.


Translated materials
Download translated materials on basic protections and entitlements, work rights, visa choices, employer obligations and using a migration agent for overseas workers.

Translation service
For information in languages other than English phone the Translation and Interpreting Service on 131 450.
 
Outreach Officer for the ACTU
The ACTU maintains a cooperative relationship with the Department of Immigration & Citizenship (DIAC) through the Union Outreach Program.  If you have any queries about immigration related matters (skilled migration) please contact:

Caroline Petricola
Outreach Officer to the ACTU
Department of Immigration and Citizenship
Tel: 03 9664 7315
Mob: 0466 153 108
cpetricola@actu.org.au
Caroline.Petricola@immi.gov.au

ACTU call centre
For expert advice on your rights at work call 1300 486 466
 
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