Australia’s evil black economy catches PNGns in its web
15 November 2015
PETER KRANZ
THE discredited sub-contractor labour scam is still rife in Australia and, despite numerous whistleblowers, little to correct its excesses seems to have been done.
My wife Rose was subject to its predations when working as a contractor picking grapes in Mildura, Victoria, and afterwards when employed as a cleaner at our local RSL club on the NSW central coast. (See PNG Attitude passim here and here)
It seems black people, students and overseas workers on temporary visas – in other words, those who are vulnerable - are easy pickings for the scammers and conmen.
While it is reassuring that television current affairs programs are to some extent covering this issue, the true nature of the enormity of the scams has not been exposed.
The system works in a way that was seemingly designed to encourage exploitation and corruption.
Want a permanent work visa? Come to us and we will get one - just give us $10,000.
And who are these sub-contractors that legitimate to which Australian organisations download their employment obligations?
I could can name a few, but it is up to Australian government authorities and trades unions to investigate them.
There is widespread corruption in the casual employment of vulnerable people in Australia. Rose and I can give chapter and verse to a few examples, but it is much wider than us.
Pick fruit for three months and you are lucky to clear $1,500 (when promised $10,000).
Clean toilets and floors in a club for a month part-time and you might make $150 (when promised the award rate of around $1,400).
This particular case is now subject of a Fair Work Ombudsman inquiry, but I don't hold out much hope.
This is the unhealthy side of working in Australia. It is effectively slave labour.
I recently met a young woman from Malaysia working at our local club as a cleaner. She worked for three months, aiming to save enough to travel back home to be with her family.
She was given $850 in wages, with someone else's name on the payslip. No superannuation, no tax, all off the record so no comeback. As she had overstayed her visa she was too afraid to speak out.
When she challenged the sub-contractor employer, the reply was “if you don't like it, get out.” When challenged, the club said, “it's not our problem, speak to the contractor” and slammed the door.
And these cases are widespread – they are much more widespread than just a few anecdotes.
There is an evil underground economy in Australia. Many organisations are taking advantage of this and it is disgusting. Worse still, no one in authority seems to care.
Update, ABC report, 27/03/16
Seasonal workers from Fiji who were paid less than $10 dollars a week have been told they must return to work for the contractor they say exploited them — or leave Australia.
An ABC investigation last month revealed many of the workers received little or no pay after deductions while picking fruit and vegetables for AFS Contracting, in northern Victoria.
Since then, representatives from the Departments of Employment and Immigration met the Fijians, who have quit working for the contractor that sponsored their temporary visas to come to Australia.
The government officials told the workers they did not have long to make their decision.
"They [are] pushing us to go back home. Every one of us is not happy," one of the group's leaders, Merewairita Sovasiga, said.
"And we are going back home with nothing. We are taking nothing back home."
The Fijians said they would like to stay and find work with other employers.
Most are desperate to make some money before returning home.
"Most of these workers have homes that were devastated by the cyclone," said Sakiusa Lesuma, a Fijian-Australian who is assisting the seasonal workers.
"This is the reason they want to stay back, and work somewhere else, earn some money."
The ABC understands the Departments of Immigration and Employment told the Fijians the only option to earn money was to return to work for AFS Contracting and its owner, Tony Yamankol.
ABC
http://www.abc.net.au/news/2016-03-27/seasonal-workers-to-return-contractor-accused-of-exploitation/7270902
Posted by: Peter Kranz | 27 March 2016 at 05:46 AM
A recent article germane to the topic: http://www.weeklytimesnow.com.au/news/politics/backpackers-left-out-of-pocket-by-labour-hire-contractor-inquiry-told/news-story/9a4545c9fe577d7d89f8056dab54cd6d
Posted by: `Robin Lillicrapp | 29 February 2016 at 06:14 AM
I saw the report too Paul and the union was in there trying to sort out what was going on. They are flat out chasing similar rorts everywhere.
There were the usual platitudes from the minister, Michaelea Cash.
Posted by: Philip Fitzpatrick | 28 February 2016 at 08:18 AM
Peter,
the best action is to take the matter up with the Department and the Minister and demand answers. Complaining will only lead to more misery.
I notice the Union movement seems to be very quite about this in the media. Is this because these workers are not part of a union?
The next issue is what were these workers told prior to taking the work on? Who told them and what did they sign? Isn't this a matter for investigation by the government and the industry if it is found to be counter productive to the initiative.
Are these isolated examples of rogue operators?
Once you have the facts it's far easier to follow the matter up through the police via a complaint and the court system via perhaps the Court of Petty Sessions where I understood you don't have to pay.
Even the threat of a complaint and potential court action could be enough.
The real issue is that no one seems to be championing these vulnerable workers. Why not take it on as a challenge?
Posted by: Paul Oates | 28 February 2016 at 08:06 AM
Yet another expose of such seasonal worker scams.
ABC's 7:30 report on Thursday Feb 25th revealed Pacific workers on the seasonal worker scheme were receiving as little as $10 a week after 'deductions' despite being originally promised over $650 a week, and were threatened that they would never be able to work in Australia again if they chose to complain.
"A group of seasonal workers from Fiji and Tonga came to Australia with the promise of earning good money to send home to their families. But that's not how things have worked out.
Since they arrived last month under the official program, the fruit and vegetable pickers have been shocked and disappointed. Some of them earn just a few dollars a day after deductions.
As Norman Hermant reports, word of their experience is spreading back to their home islands via an online forum with tens of thousands of members and that could cause dramas for Australian businesses that rely on the flow of seasonal labour. "
http://www.abc.net.au/7.30/content/2015/s4413998.htm
Posted by: Peter Kranz | 27 February 2016 at 04:31 PM
Another exposé, this time specifically about the seasonal worker scheme and corroborating Rose's experience.
________
THE Federal Government’s Seasonal Worker Program has been exposed as a front for slave-like working conditions.
The Weekly Times can reveal the scheme has been exploited by government-approved labour-hire companies that are paying workers as little as $1.20 an hour.
The issue came to a head on the weekend as six Fijian workers were in the process of being sent home by one labour-hire company.
The workers were at Melbourne Airport when they became aware the “deportation” was being carried out without the knowledge of government departments, despite the labour-hire company making this claim.
The Weekly Times has discovered government authorities are unaware of the depth of exploitation in the Seasonal Worker Program, with claims of mistreatment at farms in Victoria, NSW and Queensland.
The Fijians were among a group of farm workers who walked off the job last month claiming underpayment and mistreatment at a Euston farm in southern NSW, near Robinvale.
Five of the six are in Melbourne seeking legal advice. They refused to leave Australia out of fear they would face jail if they returned home.
Under the Seasonal Worker Program workers from Pacific Island countries receive a visa, usually valid for up to six months, to work in Australian agriculture and tourism regions unable to attract local labour. The program is predominantly used by horticulture producers.
The Fijians were casual employees of Queensland-based labour-hire company PlantGrowPick, an approved Department of Employment seasonal worker employer.
The alleged mistreatment included being:
PAID as little as $1.20 an hour under a piece rate system.
DENIED medical access.
UNDERFED by the labour-hire company, which was required to feed them.
UNABLE to move freely in the community, including visiting family.
VERBALLY abused by supervisors.
REFUSED work breaks.
PROHIBITED from attending church.
Last Thursday the workers were told they had been fired and were given less than 48 hours notice that they would be sent back to Fiji.
http://www.weeklytimesnow.com.au/news/national/shocking-conditions-exposed-in-federal-governments-seasonal-worker-program/story-fnkfnspy-1227645959057
Posted by: Peter Kranz | 16 December 2015 at 07:13 PM
The Guardian has a piece about this today.
"Hardly a week passes without further media revelations of sordid labour scandals involving big Australian companies. Myer subcontractor Spotless, 7-Eleven and Pizza Hut feature prominently on the list of employers accused of cheating employees.
Human rights protections aimed at preventing labour exploitation are enshrined in international law but instances of corporate labour abuses are rife. We need a renewed focus on human rights if we are to break this pattern of labour exploitation by corporate Australia."
http://www.theguardian.com/sustainable-business/2015/dec/10/myer-7-eleven-and-pizza-hut-scandals-show-many-workers-dont-get-a-fair-go
Posted by: Peter Kranz | 11 December 2015 at 07:55 AM
The dirty trick employers use to pay you less
As recent scandals at Myer and Pizza Hut have revealed, bosses continue to trick unsuspecting employees into arrangements that strip them of lawful entitlements in order to save costs.
(Cleaning company Spotless and convenience store franchise 7/11 have also been implicated, as well as many other clubs, hospitality companies, agricultural employers, fruit picking agencies etc.)
This may involve direct contracts or the use of another agency which enforces sub-contracts on workers.
Both Myer and Pizza Hut were accused in November of paying workers as contractors rather than full-time employees – an illegal strategy called ‘sham contracting’ that can deprive the worker of income, penalty rates, superannuation and insurance.
Many of these workers are told to sign written contracts – a clue the sham is a well-researched swindle, not an inadvertent mistake on the boss’ part.
Sham contracting occurs when an employee is pushed into an independent contracting relationship where they are classed as a contractor and paid an ‘all in’ sum inclusive of tax, leave and superannuation.
As a result, these workers may not be covered by workers’ compensation insurance. This is even more of a problem for low-paid workers because they cannot afford to have unpaid leave, fall behind in taxation and are not able to make their own superannuation contributions.
Warning signs include being told to apply for an Australian Business Number (ABN) despite your work being controlled entirely by your boss, who provides your equipment and does not delegate your tasks to anyone else.
Employers use sham contracts to avoid their obligations to provide tax and superannuation as well as accrue and pay leave.
According to McDonald Murholme’s Mr Jewell, employers may use sham contracts to avoid paying Award rates and otherwise implement below-market or unlawful conditions for employees.
Sham contracting breaches the Fair Work Act with the exception that the employer was not aware of and was not reckless of the employment status.
“Employers who choose to involve themselves in shamming take on significant legal risks, breaching multiple areas of the Fair Work Act,” Mr Jewell warned.
http://thenewdaily.com.au/news/2015/12/06/dont-fall-for-sham-contract/
https://www.fairwork.gov.au/how-we-will-help/templates-and-guides/fact-sheets/rights-and-obligations/contractors-and-employees-whats-the-difference
See also this recent report on ABC's Four Corners.
http://www.abc.net.au/4corners/stories/2015/05/04/4227055.htm
Posted by: Peter Kranz | 08 December 2015 at 04:50 AM