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Legislative Council - Fifty-Second Parliament, First Session (52-1)
2010-07-20 Daily Xml
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FOREIGN WORKERS

The Hon. I.K. HUNTER (14:52): My question is to the Minister for Industrial Relations. Is he aware of investigations into allegations of underpayment of foreign workers contracted to dismantle plant and equipment at the former Mitsubishi factory; and, if he is, will he share his understanding of this issue with the council?

The Hon. P. HOLLOWAY (Minister for Mineral Resources Development, Minister for Urban Development and Planning, Minister for Industrial Relations, Minister Assisting the Premier in Public Sector Management) (14:52): Yes, I am aware of investigations into alleged underpayment of foreign workers. A number of Chinese labourers were brought to South Australia last year to dismantle heavy machinery at the former Mitsubishi car plant. I can confirm that the Office of the Fair Work Ombudsman has conducted investigations into the alleged underpayment of wages of a number of Chinese employees of SANAN Pty Ltd who decommissioned the plant at Mitsubishi's former Clovelly Park factory.

I am advised that the investigations have resulted in the initiation of wage recovery and prosecution proceedings in the Federal Magistrates Court against SANAN. The Office of the Fair Work Ombudsman has advised that the proceedings involve 24 employees of SANAN who were allegedly underpaid more than $131,000 between 29 October 2009 and March 2010. The relevant instrument in establishing the alleged underpayment is the federal minimum wage, which at the time was $14.31 per hour.

The migrant workers engaged in the dismantling project at Clovelly Park were initially issued with subclass 456 visas, which are designed for short stay business visits of up to three months for specialised, non-ongoing work. These visas were subsequently found to be unsuitable for the type of work being undertaken by the workers at the Clovelly plant and were cancelled by the Department of Immigration and Citizenship.

I am advised that the majority of workers were then issued with subclass 457 visas, which are employer-sponsored, short stay, skilled visas. The Department of Immigration and Citizenship and the Office of the Fair Work Ombudsman have both confirmed that the alleged underpayment of wages occurred in relation to the period when the workers were issued with subclass 456 visas.

Although there are no prescribed salary or sponsorship requirements under 456 visas, there are still employer obligations to comply with local minimum wage requirements. The Department of Immigration and Citizenship advises that it is currently investigating employment conditions for the subsequent period when the workers were issued with 457 visas.

SafeWork SA industrial relations inspectors had no role in the investigation of the alleged underpayment of wages by SANAN. The investigation has been exclusively conducted by the inspectorate and litigation unit of the Office of the Fair Work Ombudsman. This is because at the time of the alleged breach the employment conditions of the Chinese workers were regulated in the federal system of industrial relations.

However, on 11 December 2009, SafeWork SA occupational health and safety inspectors conducted compliance orders at Clovelly Park and issued two statutory notices under the Occupational, Health, Safety and Welfare Act 1986. These related to the use of unsafe elevated work platforms and the use of temporary electrical power to the designated equipment dismantling work areas.

SafeWork SA has also had discussions with a contractor facilitating the coordination of the project in relation to licensing arrangements for the operation of high risk plant at the site. SafeWork SA has also monitored and reviewed the competency standards of foreign workers at the Clovelly Park plant to ensure the minimum standards have been met.

SafeWork SA recently provided a submission to the Department of Immigration and Citizenship's independent review of the impact of the Migration Amendment (Employer Sanctions) Act 2007 of the commonwealth. Through this review, SafeWork SA is seeking further collaboration with the Department of Immigration and Citizenship, with a view to establishing a memorandum of understanding to greater facilitate access to relevant lists of third-party agents who are sourcing immigrant workers and facilitating their placements in South Australia. This will allow SafeWork SA to build on the collaborative work that it currently undertakes with the Office of the Fair Work Ombudsman to audit for compliance with the Fair Work Act 2009.

Previously, SafeWork SA has liaised closely with Immigration SA in relation to the working conditions of 457 visa workers. SafeWork SA is interested in exploring ways to improve the level of information exchange between Immigration SA, the Department of Immigration and Citizenship and SafeWork SA to ensure that workers coming to South Australia are provided with fair and safe working environments.

In its submission to the current review, SafeWork SA suggested that, should the outcome of the review demonstrate that the Department of Immigration and Citizenship does not have the capacity, particularly in rural and regional areas of South Australia, to audit visa requirements relating to working conditions covering both wages and other entitlements, along with occupational, health, safety and welfare matters, it should consider engaging SafeWork SA to assist in undertaking these functions.

This is particularly relevant, given that SafeWork SA is currently working in partnership with the Fair Work Ombudsman to deliver industrial relations compliance and education services within the national industrial relations system and given that it is also effectively the sole regulator of occupational health and safety laws in South Australia.

I can advise that SafeWork SA has conducted a number of claimant-specific investigations within our pre-2010 industrial relations jurisdiction in conjunction with the Fair Work Ombudsman, as well as under our current contractual arrangements with the Fair Work Ombudsman and the federal government. Since January this year, SafeWork SA has begun undertaking industrial relations activities, such as targeted education visits, as well as responding to complaints and full investigations on a performance-based contractual basis for the Office of the Fair Work Ombudsman.

Anecdotal information from SafeWork SA and the Fair Work Ombudsman demonstrates a high level of non-reporting of underpayment of wages and occupational health and safety complaints by migrant workers on temporary visas. This appears to have a direct relationship to the vulnerability of the overseas workers, with higher levels of under-reporting than SafeWork SA experiences with other vulnerable groups, such as young workers, apprentices and trainees.

SafeWork SA is well placed to contribute to the compliance and enforcement activities relating to the employment of overseas workers. I will be encouraging the agency to engage with the Department of Immigration and Citizenship and other relevant agencies to ensure that migrant workers in South Australia are treated with respect and that, at the very least, they receive their statutory minimum entitlements.

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