The Government has announced a review of 457 visas for temporary foreign skilled workers, which looks like it will unwind conditions enacted by the former Labor Government, such as the requirement that a job must be advertised locally before a 457 visa is issued. From The Australian:
EMPLOYERS will gain a new chance to scale back Labor’s controversial limits on skilled worker visas when the Abbott government moves today to reignite a political row over the 457 visa program…
Assistant Immigration Minister Michaelia Cash will announce the inquiry with a pledge to ensure the integrity of the program while scrapping any unnecessary red tape that holds business back.
The terms of reference to be issued today highlight the importance of the program to employers that experience skill shortages and the potential of the workers to boost the economy…
Senator Cash is expected to commit to “evidence-based productivity reform” as part of the announcement…
There were 90,780 workers in Australia under the scheme at the end of last year, up 8.3 per cent on the previous year…
The toughening of the 457 visa program cleared the parliament on June 28 when Labor gained the support of the Greens and crossbench senators Nick Xenophon and John Madigan.
Abolishing the requirement that employers first advertise locally before importing workers through the 457 process seems like a retrograde step. After all, the 457 system is supposed to alleviate genuine labour shortages, rather than be a way for businesses to employ foreign labour on the cheap.
Moreover, reforming the 457 visa system seems curious given that labour shortages are fast becoming a thing of the past. The Australian economy is already experiencing over-capacity, as evident by the 6% unemployment rate, declining labour force participation (suggesting hidden employment), and substantial under-employment. With the mining investment boom set to unwind over the next few years, along with the closure of the local car industry, Australia is likely to soon face significant labour surpluses, undermining the need for 457 visas at all.
On the face of it, the Coalition’s review looks like another measure aimed squarely at undermining local workers’ pay and conditions, while at the same time keeping the throttle on population growth.
