NSW Government to employ 457 Temporary Skilled Employment Visa Holders

Executive, 23 June 2008, EX76/08

"That the report to Executive on 457 skilled temporary Visa holders be noted."

Should the Citizenship requirements for employment in the NSW public sector be relaxed to enable the employment of 457 Long-term Temporary Visa holders?

If so, what should be the appropriate controls and regulation of the use of temporary visa holders in public sector employment in NSW?

As reported separately to this Executive meeting the Public Sector workforce Office (PSWO) released an Issues Paper in relation to the s170 statutory review of the Public Sector Employment and Management Act 2002. One of the proposals floated by the PSWO is for the relaxation of the current Citizenship requirements (s54) for employment in the NSW public sector. The Issues Paper says that the s54 residency requirement is a limitation which:

...prevents the NSW Public Service from appointing highly qualified and experienced overseas applicants on temporary work visas, such as a 457 visa (for a period of up to four years) to executive positions or other non executive positions.(p18)

Whilst the use of 457 visa holders is not being strongly advocated in the Issues Paper it is an issue definitely worthy of some attention if the Minister recommends such a change in his report to Parliament in July. The 457 visa is a creation of the Commonwealth Migration Act. The exploitation and abuse of 457 visa holders by unscrupulous employers has been widely reported. They are potentially a vehicle to undercut wages and conditions and alleviate employers of the burden of proper workforce training - the cheap alternative to training the workforce is buying skills in from overseas.

The use of 457 visa holders is reportedly rife in the Health sector (eg Dr Haneef) and Nursing, private sector and some Government sectors. Although the Issues Paper hints at appointments to Executive positions, areas of skill shortages in the public sector include accountants, information technology as well as other professional areas and skilled trades.

Labour hire employers are also very active in this area. If these workers are working for a Labour Hire employer and provided to Government, they would not currently receive public sector rates and conditions but inferior non-public sector award rates or a rate agreed to between the agency and the host organisation. They would also not receive public sector conditions of employment.

As a preliminary caution the ACTU authority on this issue, Michelle Bisset was consulted and she has provided the Association with the following documentation:

• The ACTU's Temporary Skilled Overseas Workers - Policy
• Australian Council Of Trade Unions - John Holland Group Of Companies - Memorandum Of Understanding

She recommends that should the NSW Government move to allow 457 visa workers access to NSW Government employment that it should be conditional on such things as a proper skills audit of the workforce justifying a 457 intake. This is provided for in the John Holland MOU cited above. Other matters generally should include:

A commitment from the government to negotiate with unions on appropriate conditions of employment - particularly not to get bogged down in the expedient arguments around Labour hire that arose under the Secure Employment Test Case
• an agreement with the Government to ensure that these workers are directly employed and get public sector rates and conditions, ie an absolute guarantee of equal pay for equal work.
• That the Government commit to a proper training plan for both public servants and 457 visa holders (who may be employed for periods up to four years). Training should include provision for scholarships.