Section 457 visa under the spotlight as inquiry continues


Author: Craddock Murray Neumann Lawyers

Publish Date: Apr 01, 2007

The recent inquiry by the House of Representatives Migration Committee has unveiled a host of concerns about the inadequacy of the current long-term temporary business visa program (457 sub-class) and trade skill training visa (471 sub-class).

In a public hearing in Melbourne on 14 March 2007, the committee heard submissions from various interest groups such as:

  • The ACTU, the Uniting Church, the Recruitment and Consulting Services Association, Midfield Meat Pty Ltd, Entity Solutions Pty Ltd and the Law Institute of Victoria; and
  • The Australian Nursing Federation and the Information Technology Contract and Recruitment Association. Registered nurses, computing professionals, and business and information professionals represented the top three occupations for temporary skilled migrants in Australia in 2005-06.

ACTU calls for a “complete overhaul”

The Australian Council for Trade Unions (ACTU) in it s submission to the inquiry on 9 February 2007, called for a total overhaul of the 457 temporary business visa program and a complete abolition to the 471 trade skill training visa.

According to the ACTU, the need for substantial review of the visa programs stems from a concern about:

  • use of the visas by employers where there is not a demonstrated skill labour shortage
  • the abuse of workers who come to Australia on such programs
  • the use of such programs to attempt to drive down Australian wages and working conditions; and
  • the lack of a strategic approach to training and the development of broad based skills amongst Australian workers.

ACTU tells inquiry workers are “afraid”

As reported by AAP on 14 March 2007, ACTU industrial officer Michelle Bissett told the inquiry that employees at a Victorian printing firm working on temporary visas feared losing their jobs and deportation if they complained about their conditions. 

Ms Bissett said the employees were expected to do unpaid overtime and had rent and entertainment expenses docked from their pay. But they were “too scared” to report their employer because they would be sacked and had only 28 days to find an alternative sponsor or be sent home.
"They are often afraid to go public because they are in the precarious situation of the employer being able to withdraw sponsorship at any time," she said.
The ACTU suggested section 457 visa-holders should be given three months to find another sponsor before facing deportation.

Visa refusal “seriously affected” financial viability of meat company

According to the submission by Midfield Meat Company dated 29 January 2007, the Department of Immigration and Citizenship’s (DIAC) failure to process its skilled visa application has “seriously affected” the company’s financial viability.
Midfield Meat International executive manager Noel Kelson submitted that the company applied for 110 workers to be admitted under the 457 scheme in March 2006, to fill a significant shortage of skilled slaughterpersons at their Victorian site.
According to the submission, DIAC approved the first round of applications for 10 skilled workers, but failed to approve subsequent applications by “re-classifying” the plant positions.

As reported by AAP on 13 March 2007, Mr Kelson claimed the delay had cost the company a potential $1.5 million.
”We simply cannot operate a line, slaughtering for export, unless we have the skilled off-shore slaughterers at the head of it and we are now seriously considering having to close one of our lines,” the company stated. “Up to eighty people are employed in such a line.”

The next public hearing is scheduled for Brisbane on 16 April 2007


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