A UNION campaign to highlight alleged exploitation of imported workers has turned into a stoush between labour hire company Freespirit and the Chamber of Commerce and Industry over responsibility for the workers.
The Australian Manufacturing Workers’ Union has been campaigning on behalf of a group of South African workers, claiming they have been subjected to “blatant exploitation”.
The controversy has erupted at a time when employer groups, including the CCI, have suggested Australia may need to import more skilled labour to cope with growing skill shortages.
In contrast, AMWU State secretary Jock Ferguson has repeatedly criticised WA employers who import labour.
The latest case involves 37 South African tradesmen working in the heavy engineering sector who were sponsored by national labour hire company Freespirit.
Mr Ferguson has claimed the workers came to Australia expecting to earn between $40,000 and $80,000.
“However, once arriving in Australia, they were stunned when informed that more than 40 per cent of their hourly wage would be lost in order to pay Freespirit administration fees, their own superannuation and other entitlements,” he said.
A Freespirit spokesman disputed these claims and characterised its role as simply an agent.
He said Freespirit was approached by CCI’s business visa services manager Dan Engles who set up the entire deal.
The spokesman acknowledged Freespirit was the legal employer of the 37 South Africans and handled their payroll.
It took on this role because it was pre-qualified with the Federal Government as a business sponsor.
He said deductions from the workers’ pay were set by the ‘end user’, or ultimate employer, rather than Freespirit.
However, the spokesman said Freespirit charged end users a 12.5 per cent administration fee.
In practise, this money appears to have been deducted directly from the pay packets of the workers.
CCI spokesman Bob Pride has a very different interpretation.
“Freespirit recruited the workers in the latter part of 2003 utilising CCI’s services,” he said.
Mr Pride said the resumés of South African workers who responded to advertisements were passed by CCI to labour hire companies, including Freespirit, “for selection and hiring”.
“CCI’s only other role was to process the applicants’ visa applications,” he said.
“In the case of these workers, Freespirit was more than the agent, it was the employer and had the responsibility of placing and paying the workers.”
The CCI added that claimed problems experienced by some of the South African workers should not be regarded as indicative.
