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University of Technology Sydney Law Research Series |
Last Updated: 16 June 2017
Regulating Pacific Seasonal Labour in
Australia
Therese MacDermott
and
Brian Opeskin
In 2008 the Australian Government announced a new labour mobility scheme for
Pacific workers, with the objective of meeting seasonal
demand for low skilled
labour in the horticulture industry and promoting economic development in
Pacific Island Countries. Modelled
on New Zealand’s Recognised Seasonal
Employer scheme, it is a significant departure from Australia’s
long-standing preference
for permanent migration that is non-discriminatory with
respect to the country of origin. Any temporary migration programme that
draws a
workforce from developing countries has the potential to exploit vulnerable
foreign workers, but if Australia’s pilot
program is to be a success in
the long term it is imperative that seasonal workers from the Pacific are not
exposed to that danger.
This article examines the many layers of regulation that
have been introduced to protect Pacific workers from exploitation, including
bilateral intergovernmental agreements, supervision by government departments,
and use of external advisory bodies. In addition,
Australia’s regulatory
framework governing workplace relations imposes a range of worker protections
through equality laws,
occupational health and safety principles, dispute
settlement procedures, and trade union involvement. To date, the Australian
scheme
has provided very limited opportunities for Pacific workers. This raises
concerns about the long term viability of this highly regulated
scheme, and the
capacity to move beyond a pilot program to provide sustained opportunities for
both Pacific workers and the horticulture
industry.
Keywords
Labour mobility, seasonal workers, temporary
migration, Australia, Pacific Islands, workplace regulation, migrant workers,
discrimination,
dispute resolution.
Introduction
After many years of
resisting a temporary worker scheme involving its Pacific neighbours, in August
2008 the Australian Government
announced that a pilot seasonal worker scheme
would be introduced in Australia. Four Pacific Island Countries—Kiribati,
Papua
New Guinea, Tonga and Vanuatu—have been selected for the pilot
scheme, and workers from these countries will be allowed to
undertake low
skilled work in the Australian horticulture industry in nominated regional
locations. A labour mobility scheme of this
nature is a significant departure
from Australia’s previous adherence to a policy of permanent settlement
and skilled migration.
Many factors have contributed to this policy realignment,
including lobbying from the farming
sector,[1] persistent pressure from
Pacific Island Countries, a reinvigorated engagement with the Asia Pacific
region following a change of
Australian Government in late 2007, and New
Zealand’s perceived early successes with a comparable seasonal work
scheme.
Labour mobility schemes are often promoted as having the
potential to achieve multiple goals. For the sending country, they are presented
as part of a development perspective which focuses on the potential to provide
developing communities with employment opportunities,
the benefits of regular
remittances, and the chance for skills enhancement. For the receiving country,
labour mobility schemes are
seen as meeting labour shortages in developed
economies, especially in labour intensive seasonal industries where employers
may find
that a reliable workforce is lacking. The adoption of a seasonal labour
scheme has been described by Australia’s Parliamentary
Secretary for
Pacific Island Affairs as “part of a comprehensive new approach to
deepening our bilateral partnerships and strengthening
our overall engagement
with the region”;[2] as adding
symbolic value as a gesture of goodwill towards Australia’s Pacific
neighbours;[3] as having the potential
to contribute to stability and security in the
region;[4] and as a powerful catalyst
for regional integration.[5] Whether
these goals can be realized will be tested over time. The pilot program spans
approximately three years from November 2008
to June 2012, with a planned review
after 18 months and 30 months of operation.
The potential for
exploitation of workers engaged under temporary or guest worker schemes has been
a concern internationally for many
decades.[6] Proponents of seasonal
worker schemes have acknowledged that they often involve compromises in which
individual rights of workers
are traded away for greater access to employment
opportunities in developed
countries.[7] Ultimately, it is a
question of how best to secure the fundamental rights of seasonal workers while
still meeting the needs of receiving
countries.
In the case of
Australia’s pilot scheme, local concerns have many dimensions and this has
led to a dense web of government regulation
designed to ensure that the scheme
does not fail politically. First, there is a foreign relations dimension, which
is directed towards
improving Australia’s bilateral relations with its
Pacific neighbours as part of the Government’s new engagement with
the
Asia Pacific region. Secondly, there is a trade union dimension, which is
directed towards accommodating the interests of labour
organisations with which
the Labor Government has longstanding political ties. Although Australian trade
unions have recently softened
their approach to a seasonal worker scheme, they
are still outspoken in their views that the scheme must not involve a lowering
of
workplace standards or any loss of jobs for Australian workers. Thirdly,
there is the need to meet public expectations by avoiding
a repetition both of
Australia’s nineteenth century history of exploitation of Pacific labour,
and of the much more recent
history of abuse and discrimination against
temporary skilled migrants under what is commonly referred to as the “457
visa
scheme”.
The first part of this article examines the
historical context of labour mobility in the Pacific, the framework of
Australia’s
seasonal worker pilot scheme, and the key features of its New
Zealand progenitor, the Recognised Seasonal Employer program. The second
part
provides an overview of Australia’s recent experience of temporary
skilled migration from the Asia Pacific region, which highlights the
potential problems of exploitation and discrimination that can arise
under
temporary work programs and provides a cautionary tale for Australia’s
pilot seasonal work scheme. The third part of
the article examines the web of
protective regulation that has been introduced specifically to address seasonal
migration from the
Pacific. This includes intergovernmental agreements, close
departmental oversight, use of local advisory bodies, and a government
insistence that Pacific labour is contracted through labour hire companies
rather than directly by growers. The fourth part considers
how the general
regulatory framework of Australian industrial law and policy applies to seasonal
workers and supplements the special
arrangements. Critical factors are the
comprehensive coverage of safety and equality issues, trade union involvement,
and the mechanisms
available for resolving workplace disputes between Pacific
workers and their employers, and between Pacific workers and their fellow
workers. The article concludes by highlighting how these regulatory arrangements
may affect the long term viability of the scheme
and its capacity to move beyond
a pilot program to provide sustained opportunities for Pacific workers and local
growers alike.
Pacific Labour Mobility
Movement of labour within
the Pacific region is not a new phenomenon. The need for large pools of labour
for plantations and mines
during the colonial era lead to significant migration
of workers within the region, particularly to the French and British territories
of New Caledonia and Fiji.[8]
Countries such as Nauru have historically drawn from their Pacific neighbours
(especially Kiribati, Tuvalu, Vanuatu and Solomon Islands)
to provide labour for
the mining sector. Australia itself has a sorry history of forced removal of
Pacific Islanders to work on farms
in Queensland and New South Wales dating back
to the nineteenth century, a practice that became known as
“blackbirding”.[9]
However,
since the early twentieth century the Melanesian countries of Papua New Guinea,
Solomon Islands and Vanuatu have had little
access to labour opportunities on
the Pacific Rim. By contrast, many Micronesian and Polynesian peoples have had
opportunities to
access jobs in developed economies in New Zealand, the United
States and France because of special citizenship rights or preferential
visa
access for residents of current or former Pacific
territories.[10] Other ad hoc
arrangements have also evolved over time, such as the practice of workers from
Fiji, Kiribati and Tuvalu crewing on
international shipping vessels of
particular flag
states.[11]
Over a sustained
period, the Australian Government resisted pressure to give preferential
treatment to Pacific Islanders through a
temporary work scheme, despite numerous
recommendations that favoured trialling such a
scheme.[12] Part of this resistance
was based on a claim that Australia’s immigration policy was strictly
non-discriminatory with respect
to country of origin, and that immigration was
“selective, skilled and tightly
managed”.[13] The exception
was Australia’s neighbourly relationship with New Zealand, whose citizens
enjoy special rights to enter and work
in Australia under the 1973 Trans-Tasman
Travel Arrangements. While Australia’s immigration policy may be
non-discriminatory
in terms of country of origin (expect for New Zealanders and
those Pacific Islanders who are entitled to New Zealand citizenship),
there is
obviously discrimination on other grounds such as age, family relations, health
status, language ability, educational level,
and jobs
skills.[14]
Australia’s
historic preference for skilled migration has had a number of consequences.
First, very few workers from Melanesia
gain access to Australia under skilled
migration schemes.[15] Secondly, the
opportunities that do exist for skilled migration, whether from Melanesia or
elsewhere, have contributed to a Pacific
“brain
drain”.[16] The reality is
that those who most need jobs are unskilled workers with few opportunities for
paid employment in the Pacific region
and even fewer prospects of migrating to
Pacific Rim countries. As Nic Maclellan has observed, many Pacific Island
Countries are
“characterised by an oversupply of unskilled workers and an
undersupply of skilled
workers”.[17] Thirdly, the
emphasis on skilled migration has not supplied the reliable and regular
workforce needed for seasonal work in the Australian
horticulture industry
because the deficiencies in labour supply do not relate primarily to skilled or
semi-skilled workers but to
entry level positions of an unskilled or relatively
low skilled nature. As a result, the industry has had to rely on a mixture of
documented and undocumented workers, backpackers on working holiday visas, and
“grey nomads” (i.e. peripatetic retirees).
Fourthly, although
Australia’s stated preference has been for permanent migration, recently
there has been a large expansion
of temporary long stay business visas, known as
“457 visas”, which do not facilitate permanent migration.
Presumably,
considerations other than skill and permanency could inform
migration policy in this area, including outward-looking factors such
as
enhancing development assistance and promoting regional
stability.[18]
In contrast to
Australia, New Zealand has had an active engagement over many decades with
Pacific workers from its current and former
territories. New Zealand has taken
an approach that acknowledges its “special relationship” with
Pacific Island Countries,
especially in Polynesia. In recognition of these
strong historical ties, residents of Cook Islands, Niue and Tokelau are New
Zealand
citizens and are therefore able to pursue employment opportunities in
New Zealand.[19] Since the 1960s
there has been a special Samoan quota system that currently allows up to 1,100
Samoan citizens to be granted residence
in New Zealand each
year.[20] In 2002 New Zealand added
a further dimension to these arrangements with a new visa class—the
Pacific Access Category—which
provides additional migration opportunities
through random balloting for residents of other Pacific Island Countries with
which New
Zealand has close cultural or historical
ties.[21] Some of these arrangements
have consequences for Australia because Pacific Islanders who have New Zealand
citizenship can enter and
work in Australia under the Trans-Tasman Travel
Arrangements. New Zealand has also had a number of programs, dating back to the
1970s,
to grant permits to low skilled workers to pursue temporary employment in
the agriculture and forestry industries. Much of this work
was undertaken by
Samoans, Tongans and Fijians. New Zealand’s new seasonal worker scheme,
announced at the Pacific Islands
Forum Secretariat meeting in Fiji in October
2006, is designed as a single policy framework, and other programs such as the
work
permit schemes are to be phased out over
time.[22]
Australia’s Pacific Seasonal Worker Pilot Scheme
The Pacific Seasonal
Worker Pilot Scheme makes provision for up to 2,500 Pacific Islanders to work in
the Australian horticulture
industry over a three year period for up to seven
months in a year. Since the scheme was announced in August 2008, bilateral
Memoranda
of Understanding (MOUs) have been signed between Australia and
Vanuatu, Tonga and Kiribati, and an agreement with Papua New Guinea
has been
concluded and is expected to be signed in the near future. The scheme targets up
to 800 workers from Vanuatu, 800 from Tonga,
250 from Kiribati, and 650 from
Papua New Guinea. The first phase of the pilot was to recruit up to 100 seasonal
workers, but in
fact only 56 arrived in Australia to work—50 Tongans and 6
ni-Vanuatu. The second phase is to recruit the remaining 2,444
workers.
Two regional areas were initially selected for the pilot scheme:
the Swan Hill–Robinvale region in Victoria and the Griffith
region in New
South Wales. Other regions are now being considered where there is a
demonstrated unmet demand for labour and a sufficiently
long harvest season to
warrant participation in the scheme.
The scheme is premised on the
existence of unmet labour demand in the Australian horticulture industry.
Approval for growers to participate
in the scheme depends on their ability to
show they have tested the local labour market and taken reasonable steps to
recruit Australian
nationals. Oversight of the scheme is vested in local
advisory bodies established for each geographical region. Horticultural growers
in the designated regions apply to their local advisory body for access to
seasonal workers, indicating the number of workers required,
the period of
available work, and the desired skills and attributes of workers. Approval for
growers to participate in the scheme
is dependent on their willingness to
participate in other labour market programs to assist in the placement of
disadvantaged workers,
including income support recipients, Indigenous
Australians and humanitarian job
seekers.[23] Once a grower has been
obtained approval, it does not contract directly with Pacific workers but
instead negotiates with the labour
hire company that has been appointed to
manage the recruitment and placement of workers for the region. A significant
feature of
the scheme is that the labour hire company is the employer of the
workers, a factor discussed further below. To be selected for the
scheme, labour
hire companies must demonstrate a solid history of workplace compliance and
established human resources polices and
procedures.
The New Zealand Model
New Zealand’s
Recognised Seasonal Employer scheme (the RSE scheme) provides for up to 8,000
workers annually to be engaged planting,
maintaining, harvesting and packing
crops in the horticulture and viticulture industries for up to seven months in a
year. The local
labour market must be tested before turning to recruitment from
the Pacific region and South East Asia. In order to achieve recognized
status
under the scheme, an employer is subject to a vetting process that looks at past
workplace practices, evidence of written
employment policies and procedures, and
the facilities available for the workers. Once recognized, an employer can seek
an “agreement
to recruit” overseas workers, setting out the number
of workers required, their roles and the duration of employment. The scheme
initially involved a number of trial countries (Kiribati, Samoa, Tonga, Tuvalu
and Vanuatu), with a view to recruiting labour from
all Pacific Islands Forum
countries if the scheme were
successful.[24] To date, the largest
number of workers has come from Vanuatu. Under the RSE scheme, an employer is
obliged to meet half the travel
costs of the Pacific workers, guarantee a
minimum number of hours of work, and arrange various aspects of pastoral care,
including
accommodation, transport, recreation and the opportunity for religious
observance. A visa to undertake this work is dependent on
having a job offer
from an RSE registered employer and the worker passing various health and
character tests.
The New Zealand scheme has been in operation since April
2007, offering Australia the opportunity to review its neighbour’s
experience and finetune its own scheme. The New Zealand Department of Labour has
described the scheme as “on track to achieve
its aims,” while
acknowledging that issues have arisen in its early stages regarding pay and
deductions, cost and quality of
accommodation, hours of work and productivity,
and induction and training.[25] An
independent study of the operation of the New Zealand scheme, funded by the
Australian Research Council, identified a number of
areas of disputation
including housing, consistency of available work, payment rates and deductions.
The study suggested that seasonal
work programs “require investment and
interventions outside the straight employer/employee relationship” and
found there
was a need for greater engagement with trade unions, the community
sector and Pacific communities, particularly regarding pastoral
care and support
services for workers and their home
communities.[26] In June 2009 the
New Zealand Government foreshadowed changes to the system of pay deductions,
which have generated some controversy.
Research on the selection of workers from
Tonga for the RSE scheme indicates that the program is targeting comparatively
poor and
unskilled workers with restricted incomes and schooling, thereby
creating opportunities that would not otherwise exist for these
workers.[27]
Temporary Skilled Migrants: A Cautionary Tale
Australia has another
temporary migration program relevant to the Asia Pacific region, which provides
a cautionary tale about the
potential for exploitation and discrimination in
temporary work schemes. In 1996 a new class of visa, commonly known as the
“457
visa” was introduced to allow for employer-sponsored migration
of skilled workers to Australia for up to four years. Like the
Pacific seasonal
worker scheme, its object was to meet temporary labour shortages, which became
more acute as the Australian resource
boom took off after 2002. The program
expanded from an annual intake of around 16,500 workers in 1997–98 to
nearly 60,000 workers
in 2007–08, plus their dependants. The cumulative
effect of the annual intake has been significant: by 31 December 2008 there
were 132,023 such workers in Australia. Of the 40 per cent from the Asia Pacific
region, the most populous national groups were Indians
(13,167), Filipinos
(11,587) and mainland Chinese (8,902). The number of skilled migrants from the
Pacific is small relative to other
national groups (931 Papua New Guineans, 917
Fijians and 175 “others”), but still significant relative to the
2,500 potential
Pacific workers under the seasonal worker
scheme.[28]
The increase in
457 visa migration, and its gradual expansion from skilled to semi-skilled
workers in trades, mining and manufacturing,
has been accompanied by an
increasing number of reports of poor working conditions, workplace
discrimination and exploitation.[29]
The Australian Manufacturing Workers’ Union (AMWU) campaigned actively
against the program, describing it as “a new form
of indentured
servitude” and decrying that “[t]emporary visas are being misused
by...unscrupulous employers to provide
a source of cheap, bonded
labour”.[30]
Sustained
criticisms of the 457 visa program led to a number of internal and external
reviews.[31] In one of these
reviews, Commissioner Deegan documented allegations of mistreatment of migrant
workers under the scheme, including
not being paid overtime, working longer
hours than non-visa employees, limited access to sick leave, dismissal for
taking sick leave,
dismissal because of pregnancy, dismissal for taking leave to
care for a sick spouse or child, overcharges on rent or other expenses
organized
by the employer, and sexual harassment in the
workplace.[32] In addition, several
employers of 457 workers have been prosecuted successfully under industrial laws
for failing to provide workers
with required information about the terms of
their employment agreement, for pressuring workers to sign an employment
agreement,
and for breaching occupational health and safety
laws.[33]
The problems that
have been exposed in the 457 visa program are a telling reminder of the
vulnerability of foreign workers in temporary
employment schemes. Proposed
government reforms have now sought to address some of the most pressing concerns
by increasing wages
for foreign workers so that local wages and conditions are
not undermined, increasing the minimum language requirement, requiring
employers
to demonstrate a record of non-discriminatory employment practices, and
enhancing formal monitoring and compliance. The
Pacific seasonal worker pilot
scheme stands to gain significantly from the experience of the 457 visa program,
and we now turn to
consider how Pacific workers are protected under the pilot
scheme.
Special Regulatory Protections for Seasonal Workers
The fairness of temporary labour schemes is often
a highly contested issue. For example, the Canadian Seasonal Agricultural
workers
program, which has been operating for the past four decades and draws
agriculture workers from the Caribbean and Mexico, has been
described by some as
a “reasonable model” that provides “useful lessons for
Australia”,[34] while others
have called it Canada’s “shameful little
secret”.[35] Central to any
assessment of the Australian scheme is the extent to which measures have been
set in place to minimize the prospect
of exploitation of Pacific
workers.
In its 2006 report on enhancing labour mobility in the Pacific,
the World Bank identified a broad range of protections that are essential
to
temporary work schemes.[36] Some of
these are based on broad principles of equality and non-discrimination, such as
entitlements to pay equality with local workers;
others recognize fundamental
labour standards such as freedom of association. A temporary labour scheme can
offer significant protections
for workers if parameters are set to guarantee
minimum length of stay, minimum hours of work, sharing of costs, and reasonable
deductions.
Dispute resolution mechanisms that make provision for the fair
handling complaints, and sanctions for non-compliance, are also relevant.
A
factor that has a significant bearing on whether a scheme can ensure fair
outcomes is whether workers are bonded to a particular
employer in circumstances
where the threat of expulsion can be used as a tool of coercion and
exploitation.
One benchmark against which temporary labour mobility
schemes can be measured is the extent to which they adhere to the norms
established
in international instruments relevant to the treatment of migrant
workers.[37] The International
Labour Organization has concluded two treaties dealing specifically with migrant
labour, but Australia is not party
to either of
them.[38] More recently, the United
Nations General Assembly adopted a comprehensive convention on migrant workers,
which came into force in
2003, but Australia—keeping company with nearly
all net migrant receiving states—is not party to that instrument
either.[39] Australia’s
failure to ratify these conventions does not mean that it fails to observe the
conventions’ core principles
in practice, yet ratification would no doubt
provide a measure of comfort to Pacific Island Countries by signalling that
their nationals
are entitled to an international minimum standard of treatment
when working in Australia.
In the absence of guarantees under
international law, alternative protections have been put in place to minimize
the risk of exploitation
of seasonal workers, and it is to these that we now
turn. The interrelationships between relevant actors are illustrated in
Figure
1.
[insert Figure 1 about here]
Intergovernmental agreements
An important source of protective measures for
seasonal workers is the bilateral agreements that have been entered into between
Australia
and participating Pacific Island Countries. As noted above, Australia
has entered into MOUs with three Pacific Island countries—Kiribati,
Tonga
and Vanuatu—and an agreement with Papua New Guinea is still to be signed.
The MOUs set out the operational principles
governing the scheme, the desired
outcomes, and critical factors by which the effectiveness of the scheme will be
evaluated.
The protection of Pacific workers is recognized under each of
these themes. For example, the operational principles include “equity
of
access and opportunity for workers” and “investing maximum effort to
mitigate risk to ... participating nationals”.
The desired outcomes
include “avoiding unethical recruitment practices [or] exploitation of
workers”. And the critical
success factors will gauge the scheme’s
effectiveness by whether “[Pacific] nationals enjoy...fair and reasonable
treatment
by approved Australian employers” and whether seasonal workers
“are not levied with any recruitment costs or subject
to excessive
up-front
charges”.[40]
The
worker protections identified in the MOUs are important because they state the
common understanding of the parties at the commencement
of the scheme, but they
suffer from several limitations. They do not cover the broad spectrum of rights
and obligations that are
found in comprehensive international instruments. They
do not create binding legal obligations between States: as instruments of
“less than treaty status”, they operate only in the moral and
political spheres. Moreover their language is very general,
leaving open both
the possibility of different interpretations and the necessity of further
arrangements to make the principles operational.
The MOUs are supported
by detailed “facilitative arrangements” which purportedly deal with
issues of recruitment, pre-departure
and on-arrival information, the role of
trade unions, pastoral support in Australia, and access to training. It is
likely that these
arrangements articulate protections for Pacific workers beyond
those stipulated in the MOUs. However, the details of the facilitative
arrangements have not been released into the public domain because they are
regarded as “private arrangements”
[41] and, presumably, because different
concessions have been negotiated with each country.
Departmental oversight
The pilot scheme is unusual for the high degree of
government oversight of what would otherwise be private employment arrangements.
Two departments are closely involved in supervising operational aspects of the
scheme. The lead department is the Department of Education,
Employment and
Workplace Relations (DEEWR), which exercises functions in two main areas. In
relation to growers, DEEWR receives applications
from growers who wish to access
Pacific workers; it assesses whether they have made genuine attempts to recruit
local Australian
labour; and it conducts integrity checks about their
immigration, workplace relations, and occupational health and safety history.
In
relation to labour hire companies, DEEWR receives and evaluates expressions of
interest from companies that wish to employ Pacific
workers, and it scrutinizes
each company’s financial viability and its history of workplace practices.
Successful applicants
must enter into a detailed “deed of agreement”
with DEEWR, which sets out their obligations under the program, including
monitoring and reporting requirements.
The other department involved in
the scheme is the Department of Immigration and Citizenship (DIAC), which
oversees the issuing of
immigration visas. Each selected labour hire company is
required to enter into “special program agreement” with DIAC
and it
is then able to enter into commercial arrangements with growers to host the
Pacific workers for all or part of their stay
in Australia. The special program
agreement sets out the obligations of the labour hire company but these extend
far beyond migration-related
matters—indeed it forms an integral part of
the special regulatory framework for administering the scheme. Among the most
important
obligations, a labour hire company is required to: (a) pay the
full upfront cost of each worker’s airfares, with the ability
to recoup
half the cost from the worker over the period of employment; (b) meet all
transport costs of the Pacific workers between
the arrival and departure point
and the location of the work; (c) guarantee Pacific workers a minimum
average of 30 hours work per
week for six months; (d) provide briefings and
appropriate induction and training; (e) provide pastoral care and assist
workers with
arranging accommodation, health care and banking facilities; and
(f) communicate in writing if any financial deductions are to be
made for
airfares, advances for living expenses or accommodation. Labour hire companies
are also required to reimburse the Government
up to AUD$10,000 for any costs
incurred by the Government in trying to locate and remove a seasonal worker who
overstays his or her
visa. This institutional incentive to promote visa
compliance is supported by the prohibition on seasonal workers bringing
dependants
to Australia and by the opportunity for circular migration in which
visa-compliant workers can obtain work in future harvest
seasons.[42]
Local advisory bodies
A third level of regulatory control comes from the
establishment of local advisory bodies in each of the geographic regions in
which
Pacific workers undertake work for growers. These bodies comprise six
members—two representatives from local employers in the
horticulture
industry, one from local government, one from a trade union, and two from
community organisations, including churches.
Each local advisory body is
supported by government representatives from DEEWR and DIAC who observe and
assist in deliberations.
The bodies serve a number of functions. They provide
advice to DEEWR on local conditions and on applications by local growers to
participate in the scheme. They also consult about the role of labour hire
companies in each region and liaise with labour hire companies
appointed to
manage the recruitment and placement of Pacific seasonal workers in the region.
Local advisory bodies can also play
a part in facilitating and monitoring
pastoral care for workers, but it is clear that labour hire companies will have
to take a broader
view of their role as employers than may have been typical in
the past.
Labour hire arrangements
The pilot seasonal
worker scheme makes it very clear that Pacific workers will be employed only by
labour hire companies and not directly
by growers. During the first phase of the
arrangements, a number of labour hire companies were approved to employ and
place a small
number of Pacific workers—initially one engaged Tongan
workers in the Swan Hill–Robinvale region and another engaged
ni-Vanuatu
workers in the Griffith region. Additional labour hire companies have now been
selected for the second phase of the scheme.
Labour hire arrangements are
not new to the Australian labour market, where they have been used to achieve
flexibility in a number
of industries for many
years.[43] This has also been the
case in the horticulture industry, where growers meet their seasonal demand for
labour by supplementing their
own employees with workers contracted through
labour hire companies. What differs about the arrangements under the pilot
scheme is
that the nature of the employment arrangements is not left to the
discretion of growers but is dictated by government as a regulatory
condition of
participation in the scheme.
The Australian Government has suggested a
number of reasons for designating labour hire companies rather than growers as
the employers.
It removes financial risk from growers and simplifies the
negotiation of industrial instruments; it assists government in monitoring
wages
and conditions and in overseeing the practices of employers; and it facilitates
the regulation of employers through codes of
conduct applicable to the labour
hire industry. The importance of the last point is demonstrated by the criteria
that DEEWR uses
to select labour hire companies. One criterion is that the
applicant “is a member of the Recruitment and Consulting Services
Association Ltd (RCSA) or another Australian peak recruitment body or [is]
willing to comply with the RCSA Code of Conduct or similar
industry
standard”. Thus the Government’s regulatory framework for the pilot
scheme includes the potential to require
compliance with industry
self-regulation.
In other contexts, the trilateral work relationships
established by the involvement of labour hire companies have been problematic
because of the mixed legal relationships between the
parties.[44] In the pilot scheme the
labour hire company is clearly designated as the employer and, like most labour
hire arrangements, there
is no contract of employment between the grower and the
worker (see Figure 1). This avoids a common problem associated with
temporary
work schemes, namely, that the worker is tied to a single host and is
therefore vulnerable to exploitation under the threat of being
sent home. Under
the Australian scheme, the tying is not to a single grower but to a single
labour hire company. This can also create
difficulties where workers have a
dispute about their treatment at the hands of the labour hire company, or where
the company has
difficulty maintaining an adequate supply of work. Moreover,
there may be problems if workers have a dispute with a grower, since
the labour
hire company may be reluctant to disrupt its commercial relations with the
grower by intervening on the workers’
behalf.
General Workplace Regulation and its Application to Seasonal Workers
One of the critical
failures of Australia’s 457 visa scheme was that temporary migrants were
exempted from the industrial regulation
governing wages and conditions of
Australian workers. As discussed above, this left migrant workers exposed to the
risk of discrimination
and exploitation, and for some migrants this risk became
a reality. This design failure has now been remedied and has not been repeated
under the seasonal worker pilot scheme. This part considers how the general
regulatory framework of Australian industrial law, policy
and process applies to
seasonal workers and therefore supplements the special arrangements considered
above.
How will workplace regulation in Australia respond to the
challenges posed by a seasonal worker scheme? The pilot scheme is premised
on
the assumption that the scheme should not involve any lowering of workplace
standards or any loss of jobs for Australian workers.
Trade unions have
historically opposed such schemes on the basis that they are “exploitative
of the guest and exploitative
of unemployed
Australians”.[45] Although
there has been a softening of opposition to a seasonal worker scheme by some
sectors of the trade union movement, their
principal concerns of not undermining
jobs and wages remain.
Recent reforms
The last decade has seen
a fundamental realignment of Australia’s collective framework of workplace
relations to a very different
model of labour regulation. Australia’s
traditional model of industrial relations relied heavily on centralized
bargaining
and arbitrated awards but from the early 1990s successive Australian
Governments—both liberal and conservative—began
to allow for greater
flexibility and enterprise-level bargaining. The changes introduced by the
conservative Howard Government in
2005 by the Work Choices legislation
represented the high water mark of efforts to achieve a decentralized industrial
relations system.[46] These reforms
“all but completely dismantled the traditional Australian labour law
system”[47] and put in place a
new regime characterized by a very limited safety net, little scope for
arbitration, an emphasis on individual
rather than collective agreements,
weakened enforcement mechanisms, and marginalization of collective
values.[48]
Australian
workplace regulation is now at another critical juncture, with a different
Australian Government seeking to redress what
it perceives as the imbalance of
reforms instituted since the early 1990s, under a policy called “Forward
with Fairness”.[49] The first
piece of legislation to implement this policy took effect in March
2008.[50] It brought to an end the
use of statutory individual agreements and set up an ongoing process of award
modernization. The next phase
of the reform agenda, the Fair Work Act
2009, claims to rebalance Australian workplace relations towards fairer
outcomes.[51] Most of the new
legislative scheme came into force on 1 July 2009, although aspects of the
scheme such as award modernization were
postponed until 1 January
2010.
These changes form the backdrop against which the seasonal worker
scheme will be assessed. Although some Pacific workers arrived in
Australia
during the final days of the previous workplace relations regime, the vast
majority will work under the new regime. The
new industrial relations climate
has the potential to provide Pacific workers with a more favourable working
environment than previous
regimes. The new parameters of workplace regulation
are likely to restore a greater collective focus to workplace regulation and
to
offer more safeguards through the incorporation of a broader industrial safety
net. The expanded safety net, in the form of National Employment
Standards, together with the reduced capacity to rely on statutory
individual contracts, are likely to offer greater protections to vulnerable
employees.
Awards and agreements
Horticulture and
agriculture have been described as precarious industries involving low union
coverage, limited government regulation
and a highly casualized, mobile
workforce.[52] These factors present
particular challenges in providing industrial protection for workers. The terms
and conditions for workers
in this industry are governed by a complex regulatory
framework comprised of a number of sources. First, there are awards negotiated
for particular industries. A modernized award—the Horticulture Award
2010—has been prepared for the horticulture industry and commenced
operation in 2010. Secondly, the new National Employment Standards set
out minimum legislative entitlements on matters such as working hours and leave.
Thirdly, some employers have contractual arrangements
with their workers to pay
above the award rates to reflect market conditions. And finally, some employers
negotiate a collective
agreement applicable to their workforce alone, but these
are not widespread.
Early briefings by the Australian Government
indicated that one of the responsibilities of labour hire companies would be to
negotiate
an appropriate industrial instrument to cover the terms and conditions
of seasonal workers. The Australian Workers Union (AWU), which
covers many
workers in this industry, put forward a framework agreement outlining the terms
and conditions of employment under the
scheme, including matters such as
deductions and remittances. At this stage, it is unknown to what extent
individual labour hire
companies will base their arrangements on the framework
agreement.
The application of different industrial instruments to the
work undertaken by Pacific seasonal workers can be illustrated by the example
of
the 50 Tongan workers who arrived in Australia in February 2009. They were
initially engaged to pick almonds in the Robinvale
region in Victoria and were
employed by a labour hire company called Tree Minders. There was conflict from
the start between the
labour hire company and the relevant trade union, the AWU.
Tree Minders chose not use the AWU’s framework agreement—relying
instead on minimum entitlements in the horticulture award—and it employed
the workers as casuals rather than as permanent employees
for the duration of
their stay in Australia. These arrangements put in jeopardy a fundamental aspect
of the scheme, namely, that
the workers would be guaranteed 30 hours work per
week for six months. The difficulties came to a head with the collapse of the
company
(Timbercorp) that owned the farms on which the work was being done. This
left the labour hire company without adequate work for the
Tongan
workers.
Ultimately, the Tongan workers were re-employed by a different
labour hire company and were split into two groups for the remainder
of their
visa period. Some workers were relocated to Queensland to work on the citrus
harvest. A smaller group remained in Victoria
pruning table grapes. The AWU
became involved in negotiations on behalf of the workers, who were then employed
under terms and conditions
consistent with the framework agreement. The six
ni-Vanuatu workers employed in the Griffith region were employed under the
framework
agreement from the outset, and their status was that of permanent
employees.
The difficulties experienced so early in Australia’s
pilot scheme highlight some of the challenges of using labour hire companies
as
intermediaries. Under their special program agreement with DIAC, labour hire
companies undertake to provide each worker with an
average of at least 30 hours
work per week for six months, although the demand for seasonal labour is
ultimately within the control
not of labour hire companies but of growers. In
New Zealand these difficulties have been largely avoided by direct employment
arrangements
between Pacific workers and growers.
Occupational health and safety
A fundamental obligation
of an employer, both under statute and the common law, is to provide a safe and
healthy place of work for
its employees and contractors. The employer is
responsible for ensuring the safety of the worksite, the work systems in place,
and
the storage and handling of potentially harmful materials. This obligation
requires employers to undertake hazard identification
and risk assessments to
ensure all steps are taken to prevent and control risks to the health and safety
of their workers. This extends
to providing adequate information, instruction,
training and supervision of workers, as well as consulting with workers about
occupational
health and safety (OHS) issues. For Pacific seasonal workers, these
core obligations are replicated under the terms of the special
program
agreement.
Obligations under Australian OHS laws attach not only to an
employment relationship but to entities engaged in labour hire arrangements,
including the labour hire company that employs the labour and the host to whom
the services of the worker are provided. Thus, both
the grower and the labour
hire company must proactively manage risks to the health and safety of Pacific
workers who are engaged
at the work site and ensure that appropriate actions are
taken to avoid risks to health and
safety.[53] Growers have an
obligation to ensure all reasonable steps are taken to prevent workers being
exposed to risks to their health or
safety while working at a grower’s
site.[54] Additionally, labour hire
companies, as employers, have an obligation to assess the workplace for risks
before placing the workers,
to examine the growers’ OHS policies and
procedures, to make their workers aware of OHS procedures and hazards at the
site,
and to provide on-site
training.[55]
Effective
communication is a key factor in controlling risks to health and safety. The ILO
has noted that “language and cultural
barriers require specific OHS
communication, instruction and training
approaches”.[56] Pacific
seasonal workers are likely to be unfamiliar with many of the practices used in
Australian horticulture, to be inexperienced
in the use of chemicals employed in
intensive farming, and to have different (and probably lower) expectations about
health and safety
standards. It may be questioned whether many of the workers
have sufficient knowledge of safety standards, at least on their first
placing,
to enable them to resist working in conditions that may be judged unsafe.
Although proficiency in English is a desired attribute
for participating in the
scheme, for many Pacific workers English is a second or third language and may
not be at a level sufficient
to understand instructions, read signage or
labelling, and communicate effectively in the workplace to avoid health and
safety risks.
It is also foreseeable that many seasonal workers will be
keen to work long hours to maximize the financial return from their temporary
stay, even where they may have an injury or are susceptible to a repetitive use
injury. The extent to which adequate medical screening
is done before departure
will have an impact in this area. In Victoria there is a statutory obligation to
provide information in
an appropriate language, and an OHS Compliance
Code provides guidance on these
issues.[57] Vigilance in supervision
will also play a part in ensuring the heath and safety of seasonal workers, as
will the role of trade unions
in ensuring compliance with health and safety
standards.
Exploitation and discrimination
The potential for
exploitation of seasonal workers has been one of the principal objections to
such schemes for some time. The lack
of social and cultural support networks for
temporary workers, the absence of long term job security, and the prospect of
being sent
home arbitrarily all operate to place temporary workers in a
vulnerable position. In minimizing the risk of exploitation and discrimination,
Australia has the capacity to learn vital lessons from its experience with 457
visas under the temporary skilled migration program
discussed above.
Both
labour hire companies as employers, and growers as hosts, have a statutory
obligation to ensure all reasonable steps are taken
to prevent and eliminate
discrimination and harassment in the workplace. How should these obligations be
realized in practice? This
requires a proactive approach to minimize the risk of
discrimination and harassment in advance of placing workers. The required
preparatory
work extends to providing workers with information on workplace
rights during pre-departure and on-arrival processes. It also extends
to
ensuring that equal employment opportunity policies and procedures are in place
at the workplace, that existing work practices
are non-discriminatory in their
application to Pacific workers, and that growers receive training to create a
non-discriminatory
environment. Ultimately, the knowledge that seasonal workers
have about avenues for redress and the access they have to effective
dispute
resolution processes will have a significant impact on the potential for
exploitation and discrimination.
Trade union involvement
We have already noted
that trade unions in Australia historically have been “absolutely opposed
to guest labour schemes”.[58]
This position has now shifted, with some Australian unions accepting that a
temporary labour scheme can be of mutual benefit to primary
industries and to
neighbouring Pacific states, provided it does not involve any lowering of
employment standards and conditions.
Part of this shift may be attributed to the
fact that labour shortages in these industries forced growers to rely
increasingly on
an undocumented workforce comprising a mixture of overseas
students working beyond their visas, individuals working while in receipt
of
Australian social security benefits, and those with no visa entitlement to
work.[59] There is no guarantee that
labour supplied through these channels will enjoy terms and conditions of
employment that comport with
existing labour standards, and it was thus in the
interests of trade unions to ensure that labour shortages were met through more
formal and regulated channels.
Trade unions have an interest in ensuring
that the wages and conditions of Pacific workers meet the minimum standards set
in the relevant
industrial instruments. The ability of trade unions to access
workplaces to speak to workers about their working conditions will
be important
to the proper oversight of the seasonal worker scheme. Rights of entry have been
a contentious aspect of previous workplace
reform
agendas.[60] The changes introduced
by the Fair Work Act 2009 allow for more liberal rights of entry, and a
change of some significance in the context of seasonal workers is that trade
unions
will have access to a workplace for the purpose of discussions even if
they currently have no members there. Trade unions also have
specific rights of
entry to investigate alleged breaches of OHS laws.
Resolving Disputes and Monitoring Compliance
Seasonal worker schemes
need robust processes for dealing with workplace disputes, particularly if
Pacific workers feel vulnerable
to being sent home if they make complaints or if
cultural differences in the articulation and settlement of grievances make them
reticent about voicing their concerns through formal
channels.[61] Concerned about these
issues, some Pacific communities have chosen their initial participants for
their good communication skills
so that they may speak on behalf of other
workers and help to resolve any difficulties.
There are established
procedures for dealing with disputes that arise in relation to employment
issues. All awards and collective
agreements must contain a dispute settlement
clause, and they must make provision for the use of informal procedures to
resolve grievances
about
entitlements.[62] Where disputes
arise regarding provisions in an award or agreement, or with respect to other
work conditions, seasonal workers may
use these dispute resolution processes
directly or a trade union may act on their behalf.
As with any regulatory
scheme, effective compliance and enforcement relies on the willingness of
informed individuals to come forward
with grievances. Because many Pacific
workers lack knowledge of Australian workplace practices, it is incumbent on
government agencies
to be proactive in seeking out seasonal workers to ascertain
whether the scheme is functioning well in practice. Workplace inspectors
have
the power to enter workplaces to ascertain if rights and obligations under laws,
agreements, awards or orders are being complied
with. Inspectors have the power
to initiate legal action to restrain certain conduct, impose penalties or
recover outstanding monies.
They also play a part in ensuring freedom of
association and in facilitating a trade union’s right of entry to a
workplace.
It is vital that the powers of the inspectorate are harnessed within
the seasonal worker scheme to facilitate compliance and enforcement.
Similarly,
local advisory boards will have significant responsibilities of oversight of the
scheme in particular localities, and
can thus facilitate local compliance with
regulatory processes and support dispute resolution mechanisms.
Beyond a Pilot Scheme?
The Australian
seasonal worker scheme has been implemented as a pilot program and is scheduled
to be reviewed to gauge its effectiveness
in contributing to development goals,
meeting labour shortages in particular industries, and addressing strategic
priorities for
the region. So far, there appear to have been genuine tri-partite
efforts to ensure the pilot scheme becomes fully operational, but
whether this
can be sustained in the long term remains to be seen. This small pilot scheme
has been estimated to cost the government
alone AUD$23.6 million (including
establishment, monitoring and
evaluation),[63] which is two-thirds
of the estimated total wages bill of all 2,500 Pacific workers. It is an open
question whether Australia—once
described as a “reluctant Pacific
nation”[64]—will move
beyond the pilot to a more permanent arrangement for facilitating labour
migration in the Pacific. As Australia’s
Minister for Foreign Affairs has
observed, the Government has been pleased with the trial to date but has
“a fair way to go
before coming to a final judgement about whether [it]
could take that forward in any permanent way into the
future”.[65]
The scheme
was purposely introduced as a pilot—involving a small number of workers
over a finite period—so that appropriate
evaluation could be undertaken
before implementing a more enduring program. Yet, even by the modest standards
set, very low numbers
of Pacific workers have been deployed in the Australian
horticulture industry compared with the New Zealand scheme. The absence of
Pacific workers from the start of the second successive harvest season in
December 2009 has raised concerns about the viability of
the scheme.
In
some respects the timing of Australia’s initiative has not been
propitious. The domestic and regional goals of the scheme
have to be delivered
in the face of competition from a New Zealand program that started earlier,
operates on a significantly larger
scale, and builds on stronger ties with
countries of the Pacific and with Pacific Island communities who are resident
within New
Zealand. In addition, the global financial crisis has contributed to
a gloomier labour market outlook than was the case when the
pilot scheme was
first announced. A soft domestic labour market may mean there are fewer labour
shortages that need to be filled
using non-Australian labour. However, in the
long term neither of these factors is likely to have a sustained impact on the
viability
of the Australian scheme. New Zealand is a small economy whose
seasonal labour needs cannot meet the demand for employment by Pacific
Island
peoples. Moreover, the Australian economy has fared well in the global financial
crisis by international
standards,[66] and on balance it
seems likely that there will continue to be labour shortages in the regional
locations that the scheme is designed
to serve, and in the type of low skilled,
low paid work to which the scheme is directed.
An evaluation of the pilot
has been set up to examine whether the scheme is meeting its twin objectives of
achieving development goals
and increasing domestic labour supply. Much of the
rhetoric surrounding the scheme has advocated a regulatory framework that is
fair,
efficient and effective. This article has examined this regulatory
environment from two perspectives—the arrangements that
have been put in
place specifically to address the seasonal migration of Pacific workers and the
application of mainstream industrial
regulations to those who arrive under the
scheme. As noted earlier, these protections are a political necessity from the
viewpoint
of the Government’s relations with Pacific neighbours, trade
unions and the Australian public. They are also part of Australia’s
general legal obligations to safeguard the rights of individuals who are present
in its territory, including foreign workers. The
regulatory framework outlined
in this article indicates that a very high priority for the Australian
Government is to avoid any suggestion
of, or opportunity for, exploitation of
Pacific workers. This objective necessitates a level of oversight and engagement
by government
departments, industry associations and labour organisations. An
important consideration in evaluating the pilot is whether the type
and level of
regulation is sustainable if the scheme were to expand in size and
duration.
As one of the objectives of the scheme is to meet local labour
shortages, it is also important to consider the viability of the scheme
from an
industry perspective. The horticulture industry has traditionally been subject
to limited regulation and has relied on a
highly casualized and transient
workforce. Industry sources are already saying that “red tape”,
“delays”,
“onerous government conditions” and
“excessive micro-management [by government]” have made Pacific
workers
unattractive to growers.[67]
It has also been suggested that growers are reluctant to shoulder the financial
premium required to cover the travel and administration
costs of bringing
seasonal workers from the Pacific, and that the mandatory use of labour hire
companies as intermediaries has pushed
up labour costs from $18 to over $22 per
hour.[68] These factors have the
potential to drive growers back to their traditional sources of seasonal labour,
including dubious contractors
and undocumented workers. Ironically, it may be
the very web of regulation that has been woven around the scheme to protect
Pacific
workers that may make their employment less attractive to
growers.
There will always be a concern that temporary labour schemes
create possibilities for exploiting vulnerable workers, especially if
the demand
for short term labour is met by the movement of people across the
“North–South” divide. Australia’s
history, both recent
and distant, is a palpable reminder of these risks. If Australia’s
seasonal labour scheme is to bear fruit
in the future, it is vital that it is
nurtured today through a strong regulatory framework that is vigilantly
monitored and enforced
to avoid the slightest suggestion that they are the new
“blackbirders”. To date, the pilot has been painstaking in its
efforts to ensure the integrity of its protective framework, but opportunities
for Pacific workers have been quite limited in practice.
The forthcoming
evaluation of the pilot will have to meet the challenge facing all temporary
migration schemes, namely, how to enable
foreign workers to exploit new
employment opportunities without themselves being exploited. Hopefully this
elusive goal does not
lie beyond the reach of the scheme.
Figure 1: Organizational Relationships between Key Actors
local
grower
labour hire
company
Australian
Government
DEEWR
DIAC
local
advisory
body
employment
contract
supply agreement
special program agreement
deed of
agreement
placement
selection
Pacific
workers
support
integrity
checks
ENDNOTES
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