Worker exploitation is a national disgrace   :(

Date
    March 26, 2016
    Sydney Morning Herald

We learned a lot, says BusinessDay's Adele Ferguson, after the company's co-owner and chairman Russ Withers answered questions at a senate hearing.

Edwin De Castro's account of his work life is harrowing: 60 to 70-hour working weeks, dangerous working conditions, gross underpayment of wages and overcrowded accommodation.

"We were six in one bedroom and another in a shipping container – while they were deducting $250 each week for each of us for our accommodation," says the Filipino 457-visa worker.

De Castro was one of dozens of people recruited by a labour hire company to work on a building site in Narrabri, NSW, until they were dismissed without notice and evicted from their accommodation.   :(


"During the night they forced us to leave the premises, because we were living on the site. The police said that our contract had been terminated. They did not give any notice to us or inform us.


They forced us to leave the premises, otherwise they said they would charge us with trespassing. So we moved to a motel that night. They were planning to ship us out of the country to avoid any troubles," De Castro told a Senate inquiry into foreign worker exploitation.

Stories like De Castro's are all too common in industries where foreign workers on temporary visas are used.   :(

Risk to economy

With 1.3 million foreign workers on visas, equivalent to one in 10 workers, it is becoming a big problem that could easily get out of control if it isn't addressed.

In most cases the workers are too afraid to speak out for fear of being deported or are threatened that they will put their families at risk back home.

Over the course of a year and 10 public hearings, the Senate inquiry, chaired by Senator Sue Lines, heard first hand evidence from victims, regulators, unions and academics, outlining cases of wage fraud, worker exploitation and in some cases slavery.

It has now released a report with the apt title "A National Disgrace: The Exploitation of Temporary Work Visa Holders".

Some of the recommendations are highly controversial, some are obvious, but everyone agrees that the current situation can't – and shouldn't – go on.

It cites a survey by United Voice found that of more than 200 international students, 25 per cent were receiving $10 or less an hour, 60 per cent were earning less than the national minimum wage and a massive 79 per cent knew little or nothing about their rights at work.
Controversial proposals

The more controversial recommendations relate to labour hire companies and the $170 billion franchise industry. A key recommendation is that Treasury and the ACCC review the franchising code of conduct and "whether there is scope to impose some degree of responsibility on a franchisor and the merits or otherwise of so doing".

This follows a joint media investigation of the country's biggest convenience store chain and franchise network 7-Eleven, which found systemic wage fraud and fabrication of payroll records across the 620 franchised stores.   :(

The Senate didn't pull any punches. Armed with stinging criticism from Professor Allan Fels, the committee didn't buy arguments from billionaire and 50 per cent owner Russ Withers that "the 7-Eleven model had a 38-year track record as a very viable system".

The report said: "evidence to this inquiry challenged the notion put forward by 7-Eleven that it was unaware of the racket that its franchisees were running. The committee shares the view of many submitters and witnesses, that the protestations by the former chairman of 7-Eleven and other senior executives that they were simply unaware of the mass underpayment of employees defy belief".

It went further and said it was "wary of what appears to be a well-oiled public relations exercise that seeks to distance 7-Eleven from the practices of its franchisees".

The brutal reality is the franchise code needs to be revisited and franchisors do need to be more accountable for what their franchisees are doing.

Labour hire reform needed

Labour hire companies also need to be held accountable for their actions, as outlined during the Senate hearings.

In one  case, the inquiry was told about a 417 visa scam where workers at a meat processing facility did a six-week training course and "get paid nothing".

Once the training was completed, they worked up to18 hours a day, six days a week.

"They were frequently denied proper breaks and often had to keep working or return to work early after suffering workplace injuries," the inquiry was told.    :o

To this end, the opposition and crossbench members of the committee recommended introducing a licensing regime for labour hire contractors and that a business can only use a licensed labour hire contractor to procure labour.

"There should be a public register of all labour hire contractors. Labour hire contractors must meet and be able to demonstrate compliance with all workplace, employment, tax, and superannuation laws in order to gain a licence. In addition, labour hire contractors that use other labour hire contractors, including those located overseas, should be obliged to ensure that those subcontractors also hold a licence."

The committee said there was "pervasive abuse of the working holiday visa program by a network of labour hire companies supplying 417 visa workers to businesses in the horticulture sector and the meat processing industry".

But the recommendation wasn't unanimous. The Coalition senators on the panel, including Senator Bridget McKenzie, disagreed on the basis "it would punish those labour hire firms which are already complying with relevant laws".
Time for accountability

The Senate also looked at the role of the Fair Work Ombudsman and whether it had adequate resources and tough enough penalties to control systemic wage fraud and worker abuse of foreign workers.

Instead of making its own recommendations to address the shortcomings, it called for a government review of the resources and powers of the Fair Work Ombudsman to be completed by October 30 by an independent tripartite panel.

The Coalition senators criticised this recommendation as "a review recommending another review".

It is a fair comment. Equally, saying it was a matter of policy for the incumbent government, not an independent tripartite panel, is a recipe for inaction.

Worker exploitation is a national disgrace. In the quest to offer customers cheaper prices and services – and KPIs focused on the bottom line – there has become a race to the bottom.

Some big companies have been hiding behind supply chain abuses by using labour hire firms or sub-contractors. Franchisors point the finger at a few rogue franchisees.

Corporations need to be held accountable for misconduct by their contractors or sub-contractors and franchisees.

Surely this calls for a RC into exploitation of workers by employers. This seems to be reported on a regular basis these days thanks to this government's policy of  desertion of workers rights. And it isn't just foreign workers.

macman wrote on Mar 26^th, 2016 at 7:23am:

Surely this calls for a RC into exploitation of workers by employers. This seems to be reported on a regular basis these days thanks to this government's policy of  desertion of workers rights. And it isn't just foreign workers.

The more controversial recommendations relate to labour hire companies and the $170 billion franchise industry. A key recommendation is that Treasury and the ACCC review the franchising code of conduct and "whether there is scope to impose some degree of responsibility on a franchisor and the merits or otherwise of so doing".

This follows a joint media investigation of the country's biggest convenience store chain and franchise network 7-Eleven, which found systemic wage fraud and fabrication of payroll records across the 620 franchised stores.   Sad

The Senate didn't pull any punches. Armed with stinging criticism from Professor Allan Fels, the committee didn't buy arguments from billionaire and 50 per cent owner Russ Withers that "the 7-Eleven model had a 38-year track record as a very viable system".



not sure what you call this then???>..

how do you think these companies .. get exposed?????????????

if you want every company in the country before a royal.. it will take about 10 years.....

as has been said... ITS OUR STANDARDS that need looking at....like people who will find a loophole ion the tax system.. they will find a loophole to crawl through on this one as well..

but they will be caught and they will be punished...

"But the recommendation wasn't unanimous. The Coalition senators on the panel, including Senator Bridget McKenzie, disagreed on the basis "it would punish those labour hire firms which are already complying with relevant laws".

What utter nonsense.  How would it 'punish' honest firms?  By increasing honest competition?  By ensuring a level playing field in which all paid their dues and did the right thing and worked under the same rules?  How terribly 'socialist'.....

Are some of these people we pay a couple of hundred k a year to sit on  their arse for real?

Give me a Lambie any day... or a Lazarus..... or a Windsor.... at least you get some honest stirring up of the pot going on and not this kind of vapid rubbish spouted in public...

cods wrote on Mar 26^th, 2016 at 7:32am:

macman wrote on Mar 26th, 2016 at 7:23am: Surely this calls for a RC into exploitation of workers by employers. This seems to be reported on a regular basis these days thanks to this government's policy of  desertion of workers rights. And it isn't just foreign workers. The more controversial recommendations relate to labour hire companies and the $170 billion franchise industry. A key recommendation is that Treasury and the ACCC review the franchising code of conduct and "whether there is scope to impose some degree of responsibility on a franchisor and the merits or otherwise of so doing". This follows a joint media investigation of the country's biggest convenience store chain and franchise network 7-Eleven, which found systemic wage fraud and fabrication of payroll records across the 620 franchised stores.   Sad The Senate didn't pull any punches. Armed with stinging criticism from Professor Allan Fels, the committee didn't buy arguments from billionaire and 50 per cent owner Russ Withers that "the 7-Eleven model had a 38-year track record as a very viable system". not sure what you call this then???>.. how do you think these companies .. get exposed????????????? if you want every company in the country before a royal.. it will take about 10 years..... as has been said... ITS OUR STANDARDS that need looking at....like people who will find a loophole ion the tax system.. they will find a loophole to crawl through on this one as well.. but they will be caught and they will be punished...

In that case we need a standing commission.... another shot at the trough for a few old mates and a chance to post a few old mates and cronies into a nice little earner ..... chance for the feminist lobby to shriek that is should be handled by women since they are oh so sensitive and caring etc....  which ever way you go, Ordinary Joe loses somehow....

Why are the bodies not already engaged to ensure fair conduct doing their job?  Do they always need to wait for national news spreads to see there is a problem?

Out at the (now sold) farm we had a frog in the pipes called 'Paycheck' - he'd always start croaking after the water was already up to his knees in the pipe and running into the tank, rather than croaking when rain was coming like all the frogs down the dams.......

Welcome to the world of free trade and globalisation.

Not only are our jobs going off shore but we have foreign workers being imported into our country working under such pay and conditions.

Well hell why should the oligarchy employ Aussies, when it has a slave labour force it can import into our country that works for a bowl of rice and sleeps in sardine cans.

If we don't take to the streets soon, we too will become like these visa workers.

The oligarchy are the only ones that profit.

Libs don't care.

When good government finally starts they will fix it  :-/

Progressive taxation exploitation is a national disgrace.

Its time wrote on Mar 26^th, 2016 at 9:25am:

When good government finally starts they will fix it  :-/

If we don't take to the streets to fix it like we did for the Vietnam war nothing will happen.

Its our politicians from both sides that let this happen....!!!

Its time wrote on Mar 26^th, 2016 at 9:25am:

When good government finally starts they will fix it  :-/

....yes I guess you can't get exploited if you're unemployed  :D :D

Swagman wrote on Mar 26^th, 2016 at 9:29am:

Its time wrote on Mar 26th, 2016 at 9:25am: When good government finally starts they will fix it  :-/ ....yes I guess you can't get exploited if you're unemployed  :D :D

I could probably hook you up with a gig, I need a new grunt , we're 100% union so we don't contribute one cent to that 110 billion of free OT that naïve aussie workers give their bosses each year .

Swagman wrote on Mar 26^th, 2016 at 9:27am:

Progressive taxation exploitation is a national disgrace.

Was waiting for that from Swag.  As a reminder to the rest of us: http://debatepedia.idebate.org/en/index.php/Debate:_Progressive_tax_vs._flat_tax

Use that to decide what values you place as priority as a human.

Lefties, seriously you cant blame this problem solely on the Libs.

The exploitation i have seen was implemented during Labors watch.

To just blame one side of politics is missing the point, Australia has a problem with paying its workers fairly.

Until you get to the cause you are not going to fix it.

stunspore wrote on Mar 26^th, 2016 at 10:32am:

Swagman wrote on Mar 26th, 2016 at 9:27am: Progressive taxation exploitation is a national disgrace. Was waiting for that from Swag.  As a reminder to the rest of us: http://debatepedia.idebate.org/en/index.php/Debate:_Progressive_tax_vs._flat_tax Use that to decide what values you place as priority as a human.

Why?

You seem to think that exploitation is totally 'ok' when it's a majority decision.

If so you must think that it was totally 'ok' for the CSA to enslave black people because the 'majority' ruled and the 'majority' supported it.  :-?

miketrees wrote on Mar 26^th, 2016 at 10:37am:

Lefties, seriously you cant blame this problem solely on the Libs. The exploitation i have seen was implemented during Labors watch. To just blame one side of politics is missing the point, Australia has a problem with paying its workers fairly. Until you get to the cause you are not going to fix it.

Both sides are to blame.

They have been reduced to nothing more than CEO's for the oligarchy.

[quote author=miketrees link=1458938535/14#14 date=1458952632]Lefties, seriously you cant blame this problem solely on the Libs. Yep they have an open slather policy on 457s, in times of record high unemployment as well, shame libtards shame

The exploitation i have seen was implemented during Labors watch. 457s were introduced in Howards tenure

Australia has a problem with paying its workers fairly. Damn straight

Swagman wrote on Mar 26^th, 2016 at 10:46am:

stunspore wrote on Mar 26th, 2016 at 10:32am: Swagman wrote on Mar 26th, 2016 at 9:27am: Progressive taxation exploitation is a national disgrace. Was waiting for that from Swag.  As a reminder to the rest of us: http://debatepedia.idebate.org/en/index.php/Debate:_Progressive_tax_vs._flat_tax Use that to decide what values you place as priority as a human. Why? You seem to think that exploitation is totally 'ok' when it's a majority decision. If so you must think that it was totally 'ok' for the CSA to enslave black people because the 'majority' ruled and the 'majority' supported it.  :-?

We had this argument before.  Only thing that can be agred is a difference of opinion.
I feel the negative impacts (potential and real) of progressive taxation are the lesser evil vs. regressive taxation.  That's what I'm looking at - not majority wins.

Its time wrote on Mar 26^th, 2016 at 11:07am:

Australia has a problem with paying its workers fairly. Damn straight

That's true.  Most are overpaid their worth......due to market collusion

stunspore wrote on Mar 26^th, 2016 at 11:43am:

Swagman wrote on Mar 26th, 2016 at 10:46am: stunspore wrote on Mar 26th, 2016 at 10:32am: Swagman wrote on Mar 26th, 2016 at 9:27am: Progressive taxation exploitation is a national disgrace. Was waiting for that from Swag.  As a reminder to the rest of us: http://debatepedia.idebate.org/en/index.php/Debate:_Progressive_tax_vs._flat_tax Use that to decide what values you place as priority as a human. Why? You seem to think that exploitation is totally 'ok' when it's a majority decision. If so you must think that it was totally 'ok' for the CSA to enslave black people because the 'majority' ruled and the 'majority' supported it.  :-? We had this argument before.  Only thing that can be agred is a difference of opinion. I feel the negative impacts (potential and real) of progressive taxation are the lesser evil vs. regressive taxation.  That's what I'm looking at - not majority wins.

......yes, kind of like how handing over your valuables to an armed robber is preferable to being shot  :D

Swagman wrote on Mar 26^th, 2016 at 9:27am:

Progressive taxation exploitation is a national disgrace.

So is progressive incomes that generate massive amounts for the few..... they should pay their fair share for the benefits they receive from society.

Swagman wrote on Mar 26^th, 2016 at 12:37pm:

stunspore wrote on Mar 26th, 2016 at 11:43am: Swagman wrote on Mar 26th, 2016 at 10:46am: stunspore wrote on Mar 26th, 2016 at 10:32am: Swagman wrote on Mar 26th, 2016 at 9:27am: Progressive taxation exploitation is a national disgrace. Was waiting for that from Swag.  As a reminder to the rest of us: http://debatepedia.idebate.org/en/index.php/Debate:_Progressive_tax_vs._flat_tax Use that to decide what values you place as priority as a human. Why? You seem to think that exploitation is totally 'ok' when it's a majority decision. If so you must think that it was totally 'ok' for the CSA to enslave black people because the 'majority' ruled and the 'majority' supported it.  :-? We had this argument before.  Only thing that can be agred is a difference of opinion. I feel the negative impacts (potential and real) of progressive taxation are the lesser evil vs. regressive taxation.  That's what I'm looking at - not majority wins. ......yes, kind of like how handing over your valuables to an armed robber is preferable to being shot  :D

As in letting Bossy earn as much as he wants so he won't sack you, and allowing him to exploit you all he wants?  Maybe we need a return to the company store.... that way the Boss could generate as much profit as he likes and exploit every facet of his worker's incomes for his own benefit, while paying no tax....

Yes - you can work here - but only if you buy from the company store at ruinous rates... sound a lot like your argument against compulsory Unionism.....

How is concentrating all the economic power into the hands of a few any different from the company store - and how is the company and company store any different from forcing everyone to belong to a Union?

That's why the Unions started out..... you can't just exploit everyone and force them to do your economic bidding so you can make as much as you want tax-free, the same as you can't force elected representatives to vote for your purported 'mandate'.. meaning anything you want it to be.

There have to be rules and balances, Swag.

Sir Grappler Truth Teller OAM wrote on Mar 26^th, 2016 at 5:31pm:

Swagman wrote on Mar 26th, 2016 at 9:27am: Progressive taxation exploitation is a national disgrace. So is progressive incomes that generate massive amounts for the few..... they should pay their fair share for the benefits they receive from society.

If you're paying a lot of tax you must be earning decent money, think of those poor souls that have to work weekends just to make ends meet whilst you complain about working showing up five days a week.

Don't try to change Swag - it won't work.  The guy has no concept of real slavery.  The "working poor" is something so outside his mind that even when it is right in front of him he sees right through them like they are invisible - which is fair enough, because the poor are invisible - can only tell they are present via their stink of neediness probably.

stunspore wrote on Mar 26^th, 2016 at 7:45pm:

Don't try to change Swag - it won't work

......ah ha..... finally an accurate post  :D

Swagman wrote on Mar 26^th, 2016 at 11:42pm:

stunspore wrote on Mar 26th, 2016 at 7:45pm: Don't try to change Swag - it won't work ......ah ha..... finally an accurate post  :D

If only the rest of your posts are accurate too.

Sir Grappler Truth Teller OAM wrote on Mar 26^th, 2016 at 5:31pm:

..... they should pay their fair share for the benefits they receive from society.

....I don't disagree, they should pay the same as the next man, just like a shout at the pub.  :D