The sharp contraction of temporary migrants is driving up hospitality wages, according to Restaurant and Catering Australia (RCA). But rather than let the ‘market’ balance supply & demand, the RCA is calling for the federal government to hasten access to cheap, exploitable migrant workers:
Pubs, bars and restaurants are offering workers their pick of shifts and roles and hourly rates in some cases over $40, costs a key industry body said would have to be passed on to patrons.
Wes Lambert, chief executive of Restaurant and Catering Australia, said some hospitality businesses were paying sign-on and retention bonuses “into the thousands of dollars”.
“Some businesses are offering up to $45 an hour for positions that would normally pay in the 20s,” he said…
Restaurant and Catering Australia has called on Immigration Minister Alex Hawke to hasten the arrival of working holiday and skilled visa holders and international students to plug the critical shortage.
The notion of bringing foreign workers into Australia to work in hospitality to alleviate purported ‘skills shortages’ is deplorable. The actual evidence shows that the Accommodation & Food Services industry (i.e. hospitality & tourism) pays the lowest wages in Australia at only $650 per week, according to the ABS:
The Accommodation & Food Services industry pays the lowest wages in Australia.
It is true that the Accommodation & Food Services industry has been hit hard by the reduction in temporary foreign workers:
These temporary visa holders tend to work in low skilled industries like hospitality and compete for jobs directly with young Australians:
In addition to placing upward pressure on wages, the sharp reduction in temporary foreign workers has driven youth unemployment well below pre-pandemic levels (despite the recent lockdowns):
Therefore, the drop in foreign workers has boosted opportunities for young Australians – an unambiguously good outcome for the nation.
We should also remember that the hospitality industry is notorious for migrant wage theft and exploitation. Thus, giving the industry easier access to foreign workers will only worsen the systemic exploitation already prevalent across hospitality, keeping wages low and denying local workers employment opportunities and a living wage.
The long-term solution to ‘labour shortages’ is to offer decent wages and conditions. That’s how a labour ‘market’ is supposed to work.
Politicians must stop pandering to vested interests like RCA.
