The Guardian 8 November, 2006
Rip off visas exposed
The Australian Manufacturing Workers Union (AMWU) has released a Cheat’s Guide to Section 457 visas, demonstrating how the Federal Government allows Australia’s worst employers to rip off Third World trades people. The simple step-by-step move is taken straight from the Dartbridge Welding paybook and shows how a theoretical wage of $41,000 a year can be turned into take home income of less than $17,000.
AMWU Secretary, Doug Cameron, said the legal minimum of $41,850 gross annual income demanded of guest labour employers is a "rip off" that duds immigrants of thousands of dollars a year in comparison to Australians doing the same work. In practice it is even much worse than that.
The Filipinos employed by Dartbridge were promised the legal minimum but then the smoke and mirrors were applied.
They were:
charged $175 a week each for transport and bunk accommodation
slugged $49 a week for health insurance
classified as casuals; effectively stripping $201.20 a week from their wages
charged an agent’s fee of $3660 each
made to pay interest on the "agent’s fee" for six months, at an effective rate of 66 percent, costing another $1098
still taxed by the Federal Government on their gross figure of $41,850, stripping another $167 a week out of their pay packets
Then, hey presto, the $41,850 promised in the Philippines had turned into $16,855 ($324.15 a week) in Brisbane.
The AMWU pointed out that the Brisbane welders are just one example of how employers rort the system without attracting the attention of government agencies. It is not the worst case to come to light so far.
Last month, a Chinese immigrant revealed he had been charged an agent’s fee of $20,000.
Another Chinese tradesman said he had been charged an agent’s fee in Hong Kong, then the Australian employer had forced him to pay another $10,000 out of his weekly earnings.
Earlier this year, in Perth, Korean immigrants were forced to buy second hand cars on arrival, at prices locals say were up to three times their real value. The AMWU has called for an inquiry into the system administered by Immigration Minister Amanada Vanstone.
The union is calling for a full parliamentary inquiry into the 457 Visa scheme.