People importer wants indemnity

Labour hire outfit Freespirit wants exploited South Africans 
to indemnify it against back-pay claims that could exceed 
$100,000 as the price of keeping them in the country. The company 
has been at the centre of controversy since the Australian 
Manufacturing Workers' Union (AMWU) blew the whistle on its 
importation of 29 boilermakers, pipe fitters and welders who were 
paid effective rates as low as $11.50 an hour to work in Western 
Australia (see last week's Guardian).

Two of the South Africans, Ronald Oliveira and Roland Claasen, 
were sacked the day after they went public about their 
predicament. In the case of Oliveira, Freespirit has informed him 
in writing it was revoking his four-year immigration visa and 
seeking his deportation.

The company refuses to negotiate with the AMWU although all 29 
South Africans have joined the union.

Last week it offered some of the men undisclosed amounts on 
condition that they sign secrecy agreements and deeds of release 
with a wholly-owned subsidiary that would take over their 
sponsorships.

Their new employer would be FSP Technical.

The deeds require the South Africans to release Freespirit from 
"all claims and actions in relation to the employment 
relationship".

Freespirit argues its only salary obligation to the skilled 
tradesmen is to pay the minimum $37,820 a year, irrespective of 
hours worked or any agreements that might apply to Australian 
workers on the same jobs.

This rate, according to the new contracts, includes loadings for 
annual leave, long service, sick leave, statutory holidays, 
termination and other entitlements, as well as "provision for 
repatriation of you and your dependents".

The proposed "sponsorship employment agreements" make it clear 
the South Africans are "casuals" who may be moved from job to job 
at Freespirit's whim.

"You will work for the periods and the hours required by our 
clients", it reads. "We will pay you no less than the minimum 
annual salary level, calculated on a pro rata basis, specified in 
Regulation 1.20B of the Migration Regulations ..."

The workers, already charged $5000 in South Africa for fees, 
paperwork and airfares, are required to make another "non-
refundable contribution" of $650 towards costs of the new 
sponsorship agreements. Many are still being charged interest of 
144 per cent on their original $5000 loans.

Workers are required to meet their own insurance.

Freespirit insists that terms of the agreements must remain 
"confidential", even after they have ended.

The company has been accused of engaging in "pyramid labour hire" 
by AMWU WA State Secretary, Jock Ferguson.

The union is seeking to carry out time and wages inspections on 
behalf of each of the South Africans with a view to lodging 
claims in the Industrial Relations Commission.

Mr Ferguson has written to other state branches in a bid to 
identify 1000 South Africans Freespirit says it has working in 
Australia on Section 457 visas.

Meanwhile, the AMWU is confident of being able to prevent the 
deportations of Oliveira and Claasen.