Migrants to get Market Rates

Sep 7, 2009

On September 14th, 2009 changes will be introduced to the Temporary Business Sponsor visa, aka 457 Visa which will help to dter exploitation of overseas migrants on temporary 457 visa, and help protect local jobs. Below is an extract from The Australian newspaper.

MIGRANTS TO GET MARKET RATES

CONTROLS on temporary skilled migrants have been tightened to ensure they are not being used to undercut wages of the permanent Australian workforce.

The government will require that employers hiring workers from overseas using what are known as 457 visas must pay them market rates. 

"The Rudd government has made it clear that temporary skilled overseas workers should not be employed ahead of local workers because they are a cheaper option," Immigration Minister Chris Evans said. 

Under long-established rules, employers bringing temporary skilled migrants to Australia must pay them either the award wage for the position, or a minimum salary level of $45,220. 

This could mean, for example, that a shipyard that has been paying its welders over-award wages could bring in a team of Filipino workers on the award. 

Employers who are paying their temporary migrant staff less than market wages have until January 1 to raise them.

Department of Immigration research shows that most of the 77,300 temporary migrants are in relatively highly paid positions, with 59 per cent professionals, 9.56 per cent managers and 12.8 per cent semi-professionals. 

The average salary is $77,500 while the average total remuneration is $91,400. However, the government is concerned that problems are developing among the 17 per cent of skilled migrants who are working in trades, particularly in the mining industry. 

Senator Evans said that employers bringing in temporary migrant workers would have to set their wages in line with those paid to equivalent Australian workers undertaking similar work at the same workplace. This would include any above-award salary rates. 

Where there is no equivalent local worker, the employer may use collective agreements or awards for the position as the market rate. If this is not possible, the employer should refer to remuneration surveys. 

No 457 visas will be issued if the market salary rate is below the minimum threshold, which has been set at 60 per cent above the minimum wage determined by the Fair Pay Commission. 

Source: The Australian