Parliamentary Committees

Select Committee on Wage Theft in South Australia

The Hon. I. PNEVMATIKOS (18:13): I move:

That it be an instruction to the Select Committee on Wage Theft in South Australia that its terms of reference be amended in paragraph 1 by inserting after subparagraph (h) new subparagraphs (ha) and (hb) as follows:

(ha) The impact of COVID-19 economic measures on work practices;

(hb) The intersection of slavery and slavery-like practices with wage theft to establish the depths of human trafficking in South Australia; and

I rise today to bring this motion to a vote. This motion clearly extends the wage theft committee's terms of reference to both include COVID-19 circumstances as well as look at the intersection of human trafficking and slavery and wage theft. I would like to thank each member of the committee, former and current, for their work on the committee. I am sure other members of the committee would agree that the investigation has uncovered much more than we anticipated and has highlighted how rampant the issue of deliberate underpayment of workers' wages and entitlements is in South Australia.

The submissions of witnesses have highlighted the systemic issues of employer practices as well as the number of workers and their families who are affected by wage theft. Several witnesses raised issues that were beyond the scope of the current terms of reference, hence the reason that I am seeking to extend them with this motion today. Although the current terms of reference allow for other matters relating to wage theft to be discussed, I am proposing that the committee specifically add these extensions to properly assess the full scope of wage theft in South Australia.

I have talked about the issue of slavery and slavery-like practices in this chamber before and believe that it intersects greatly with wage theft. The deliberate underpayment of workers and labour exploitation is a slavery-like practice and must be investigated. Furthering the wage theft committee's terms of reference in this area would uncover the true human cost of wage theft in South Australia.

Secondly, the motion seeks to extend the terms of reference to investigate the impact of COVID-19's economic measures on work practices. Coronavirus has forced many workers from a range of industries to change their work practices. As such, workplaces have been reported to be underpaying their workers. We know that businesses are hurting; however, employers cannot use this pandemic as an excuse for underpaying their workers.

The media has also reported that businesses are rorting the JobKeeper scheme and not using the program as legislated. I recognise that the economic measures in response to COVID-19 predominantly lie within the federal law, but we have a responsibility to assess how it is applied and manifests in our state. As we begin to recover from the deepest impacts of the coronavirus, it is of the utmost importance that the committee fully consider what effect it has had on wage theft. If this motion is successful, an interim report will be released soon, with another to be released after further assessment of these two additions is complete.

The Hon. T.A. FRANKS (18:16): I rise on behalf of the Greens to support the Hon. Irene Pnevmatikos' motion today, certainly extending specifically the terms of reference of the wage theft select committee currently underway. I note that I am a member of this particular select committee and that it has done some very fine work already, although I am not sure if I am allowed to talk about that at this point.

I would also note that we do know already that the impact of COVID-19 has been profound in our community, with the extension of the economic measures around COVID-19, and not just potentially the wage theft under schemes such as JobKeeper but also the treatment of those who have become trapped by the pandemic. Certainly, my understanding is that we have many, for example, international students and others on various visas, who have now been put in a position with very little support.

We know, anecdotally, from reliable sources of information that, for example, international students are relying on charity for the only food that they are receiving, and we know that they are in positions where their employment has disappeared. They are unable to return home, not least because of financial means, but of course with travel restrictions and difficulties, and we have in our society now people with no access to supports eating only a few meals a week. That sort of situation is one that this legislature should not look away from but should look deeper into and should shine a light on.

While these are federal matters—and, indeed, slavery and slavery-like practices have already been presented as evidence to the wage theft committee and are largely the domain of the federal parliament—it is our duty to ensure that where these practices are going on in South Australia we do not look away. We should not shield ourselves from the reality of these situations simply because there are constitutional lines drawn between pieces of legislation, when the job of a select committee is also simply to be that conduit to people who are vulnerable and who are being exploited. In these particular situations, I think the worst of the worst practices are taking place. We know these practices are taking place, and the extension of the select committee's terms of reference for a period of time longer to look at these issues more deeply is most welcome.

The Hon. C. BONAROS (18:19): I would like to quickly note our support for the motion. The two members who have spoken already—the Hon. Irene Pnevmatikos and the Hon. Tammy Franks—have already outlined the reasons well, and given the hour I indicate our support for the addition.

The Hon. R.I. LUCAS (Treasurer) (18:19): I will speak briefly. We opposed the original motion, I oppose this particular extension, but I accept the majority will support it. There are two points I would make. One is that I think it is disappointing that it is a time when many of us are trying to work together—government employers and employees. I instanced yesterday the genuine endeavours of the commonwealth government to work with Sally McManus and the ACTU and business leaders in the interests of post COVID-19 recovery. I outlined my endeavours to work together with Angas Story and other representatives of the employees.

The use of inflammatory language by the honourable member, and indeed others, to attempt to demonise the employer class in South Australia and businesses in South Australia—inflammatory language such as 'slavery', 'slavery-like practices', 'human trafficking', 'wage theft', etc.—seeks to divide rather than to unite. This government is in the interests of working together with employers and employees. We are not interested in driving a wedge. We have seen the problems in other parts of the world where leaders seek to drive wedges between people. This government is about trying to unite rather than driving wedges—

Members interjecting:

The PRESIDENT: Order!

The Hon. R.I. LUCAS: —in relation to this issue. I am assuming, given the views that some members expressed in relation to this motion, that some of the evidence, which is now public, of a former Labor minister who is now a prominent member of the Labor opposition in another place, where the union has taken that particular issue to court for underpayment of wages or entitlements whilst that particular person was a Labor minister, may well be part of the evidence in terms of wage theft as it is so described; that is, for the deliberate underpayment of wages to employees within the public sector.

I am sure the Hon. Ms Pnevmatikos, the Hon. Ms Bonaros, and others who have expressed their views about deliberate intent on behalf of employers, will be exploring those particular claims and issues as well in terms of the evidence that has been presented.

The Hon. I. PNEVMATIKOS (18:22): Just one comment: human trafficking and slavery practices are issues that have been identified worldwide. Human trafficking is occurring. We have heard evidence on the committee about that, so it is not a figment of my imagination or anyone else's. It is a real problem and I cannot give it another name if that is the reality.

At the end of the day, there are a number of practices—and that is not to say that there were not employers who we heard from who were doing an admirable job and were not the target of considerations of our inquiry because there was no issue with their practices—but an assumption that is being made that it is all about painting everyone with the same brush is not the case, and certainly that has not been revealed in the inquiries of the committee.

Motion carried.