Business worried over PM’s visa crackdown

BUSINESS groups have expressed growing concern over the federal government’s latest stance on skilled migration and workplace relations, after a string of announcements from Canberra signalled a shift in government policy.

The government has incurred the wrath of industry groups over its sudden crackdown on the 457 visa scheme and criticism of employers using the program.

Comments by Prime Minister Julia Gillard at an ACTU summit in Canberra backing union demands to enshrine penalty rates in law has done very little to ease business fears the government is tacking to the left.

Ms Gillard said Labor would go to the election with the promise to insert a specific provision in the Fair Work Act guaranteeing higher rates for working outside of normal hours.

“We will make it clear in law that there needs to be additional remuneration for employees who work shift work, unsocial, irregular, unpredictable hours or on weekends and public holidays,” she said.

Australian Chamber of Commerce and Industry chief executive Peter Anderson attacked the government for playing politics at the expense of small businesses.

“It’s a disappointing announcement that will be a blow to small businesses who are trying to make the case in the Fair Work Commission that some of the recent increases in penalty rates should be wound back,’’ Mr Anderson said.

“The government is tilting the playing field in any penalty rates case heavily against small business.”

A bid by industry groups to have Sunday penalty rates for workers cut in half was rejected by the Fair Work Commission this week.

The commission handed down its decision to keep penalty rates unchanged, following a 15-month review process in which groups such as the National Retail Association, the Queensland Chamber of Commerce and Industry and Ai Group made submissions.

The groups sought to halve the penalty rates paid to employees on Sundays and remove the 25 per cent penalty rate for evening work.

On Monday, business groups criticised the Gillard government’s crackdown on the 457 visa program, following the announcement that the Fair Work Ombudsman would be given new powers to monitor and oversee 457 visa compliance.

Immigration Minister Brendan O’Connor said the ombudsman would be granted oversight of several key aspects of the visa program, including monitoring and enforcing compliance over salary market rates and job descriptions for visa holders.

Mr O’Connor said the new powers would protect temporary workers using the visa and safeguard Australian workers from being undercut in pay and conditions.

However, chief executive of the Chamber of Commerce and Industry Western Australia chief executive James Pearson attacked the government’s plans as short-term politicking.

Mr Pearson, who serves on the government’s Ministerial Advisory Council on Skilled Migration (MACSM), said Labor’s rhetoric and action over 457 visas was damaging Australia’s investment reputation.

“Australia’s international reputation as a place to invest and do business, is at risk if Australian employers, in the private sector and government, are not able to supplement our local workforce with skilled temporary and permanent migrants to meet the need to build projects and provide services to the community,” Mr Pearson said in a statement.

He said the government was making changes without consulting industry or providing evidence to support the claims of widespread program abuse.

“The most recent government announcement, today’s proposed change to extend powers to the Fair Work Ombudsman in relation to immigration, has not been made in consultation with MACSM,” he said.

The Australian Industry Group (Ai Group) also voiced its concerns over the government’s plans.

Ai Group chief executive Innes Willox said the politicisation of the issue over recent weeks was worrying.

“We remain concerned that the series of announcements around 457 visas, combined with offensive and repeated references by unions to the system being akin to slavery, is unfairly demonising employers and vilifying 457 visa holders,” Mr Willox said.

Master Builders Australia chief executive Wilhelm Harnisch attacked the government’s announcement, calling for “a rational discussion between government and industry rather than government making decisions on the run”.