The Guardian May 5, 2004


West Australian bosses try to worm out of immigration rorts

Employers, including WA's powerful Chamber of Commerce and 
Industry (WACCI), are protecting their backsides in the wake of 
immigration rort revelations (see last week's Guardian). 
The Australian Manufacturing Workers' Union (AMWU), last week 
lifted the lid on the abuse of dozens of tradesmen, imported from 
South Africa and paid as little as one-third of going rates.

The AMWU fingered three companies — labour hire outfit 
Freespirit, the WACCI and Pretoria-based Australian Business 
Associates — as ringleaders of a scheme that pays qualified 
boilermakers, pipe fitter and welders as little $11.45 an hour, 
after expenses.

In the wake of the revelations, Freespirit hired a PR company, 
Australian Business Associates and rushed its South African 
representative to Perth, and the WACCI made noises about 
extricating itself from the scheme. But, according to AMWU 
representatives on the ground, none of them would talk to 
affected workers.

"They are all pointing the finger at one another", said State 
Secretary Jock Ferguson. "But nobody will take responsibility for 
what has happened.

"Freespirit has hired a legal firm and a PR agency. We have made 
numerous requests for meetings to try and sort this out but, so 
far, nothing.

"We want these workers paid the appropriate rates that apply in 
the industry and we want an end to unfair conditions that are 
being applied. At the end of the day, we want a fair go for these 
people because they are working in our country.

"Someone, eventually, is going to have to face up to that."

The union is also concerned by allegations from the South 
Africans that they were instructed not to join trade unions on 
pain of deportation.

When a boilermaker from Johannesburg went public about his 
situation, two weeks ago, he was sacked from Perth engineering 
shop, RCR, the following day.

The scheme was revealed when 25 South African tradesmen walked 
off jobs in Perth, Port Hedland and Kalgoorlie, in protest at 
their treatment. They all signed up with the AMWU.

One boilermaker revealed he was earning $13.40 an hour, after 
expenses, alongside Australians at Port Hedland on $44 an hour 
union-negotiated agreements.

Members of the 25-strong group said they had answered 
advertisements in Johannesburg newspapers placed by Australian 
Business Associates.

They went to a meeting with a woman, claiming to represent both 
Freespirit and the WACCI. She told them four-year visas would be 
arranged and they would earn around $25 an hour.

When they arrived in Australia they were farmed out to a range of 
sites where all-in rates were eaten away by a $1 an hour health 
care levy; nine percent super deductions; and 12.5 percent 
kickbacks to the labour hire company.

On top of that, they faced $5000 slugs to cover airfares and 
administration costs on visas arranged through Australia's 
Immigration Department. Most said they were being charged 144 
percent interest on that figure.

Unions say the scheme is being facilitated by a Federal 
Government prepared to use immigration to undermine the earnings 
of Australian families.

AMWU organiser Steve McCartney said the South Africans deserved 
praise for blowing the whistle on the practice.

"They've stood up to be counted on this. They don't know anyone 
in this country but they do know they are being shafted by 
Freespirit, the Chamber of Commerce and Industry and the Federal 
Government", he said.

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