The joys of travel: The 457 visa journey

1. The joys of travel: The 457 visa journey Verena Marshall, PhD, JD School of Business Law and Taxation & Graduate School of Business Curtin University

2. Methodology • 2 stages of data collection • 1st – On-line quantitative survey (n=1,044) • 2nd – Follow-up qualitative interviews (n=40)

3. Methodology… • 1st: On-line survey (n=1,044 responses) • Australian Human Resources Institute • Piloted by Curtin Graduate School of Business • 54% respondents: directors, managers, advisors, administrators, • 45% HR managers and administrators

4. Four (4) datasets: in relation to 457 workers… • employers (n=683) • colleagues (n=330) • 457 visa workers (n=47) • haven’t employed 457s (n=154)

5. 2nd Stage – Follow-up Interviews (n=40) • Drawn from • Mining • Construction • Health • Public Sector • Agriculture • Defence • Education • Migration agents • Scientific industries, etc.

6. 70% of respondents - experienced skill shortages • Of those who recruited 457s (n=683) • 70% - professionals • 47% - technical (IT, science) • 27% - managerial • 19% - trades

7. Of those who recruited 457s… • 96% - report organisations benefited “You can see it a mile off if they’ve got the right attitude.” (Recruitment Manager, Law Firm, Perth)

8. 32% (n=221) experienced problems: • Employers acknowledge: • Navigating immigration process • English proficiency • 457 colleagues divided on this issue (53% : 47%) • Leaving before visa expired • Assimilation into organisation

9. Navigating immigration process “Magnetic Island was taken off the regional area – because Townsville was so close…but it’s a $30 round-trip on the ferry to come across… not many locals want to…two hours worth of someone’s work to come across to work.” (Manager, Tourism Industry)

10. English proficiency… • IELTS – at least 5 in all components (speaking; reading; writing; listening) • However, who is in charge of the exam?

11. IELTS Form (describing Band 8): “…has fully operational command of the language with only occasional unsystematic inaccuracies and inappropriacies; misunderstandings may occur in unfamiliar situations; handles complex detailed argumentation well.”

12. Leaving before 457visa expires • For some a problem… • Others, it wasn’t… “I’ve heard of competitors insisting on clauses in contracts offered… It’s harsh on people from 3rd world countries, unfamiliar with their rights, but I understand why they do it…” (Company Director, Mining, WA).

13. Assimilation into organisation “Linies (linesmen)… they’ll do whatever you tell them to do… you tell them, ‘go and jump off thatBridge there’… they don’t question” (Engineer, Electricity Company, SA)

14. Change to flight plan needed..? “…a PhD-holding individual…[agency] blown away by the qualifications… asked him for usual documentation in order to prepare 457…huge diatribe as to why he couldn’t provide any of his degrees… found out this guy had never completed anything at all…got in to see this Professor, and when his back was turned, he pinched his letterhead”

15. Change sponsorship obligations Medical Costs Time Security checks Absence of probationary clauses Reduction of minimum salary Flexible hours of work Increase range of occupations Visa range beyond 4 years Pay repatriation costs Voluntary or involuntary No costs recoverable for visa application Increased monitoring & sanctions Australian market rate salary or above at or above $45,220 pa Must be approved occupation No. of occupations reduced Visa range 1 day – 4 years Careful what you wish for…

16. Changes for employers: • Validity of sponsorship approval – • increased to 3 years • Unlimited no. of nomination applications • Employers no longer show 457 visa employment benefit to Australia • instead – demonstrate record of training & employing Australian citizens

17. Increased sponsorship obligations… • Co-operation with DIAC inspectors • Maintain records of compliance with obligations • Provide records and information to DIAC • Possible exchange between DIAC and other agencies (DEEWR; ATO) • DIAC – greater power to take sanctions against employers • Barring sponsorships • Cancelling sponsorships • Issuing fines

18. Occupations/positions… • Skilled Occupation List (commenced 1 July 2010) • Previous number: n=408 • Current number: n=181 • Medical (40%) • Engineering classifications (20%) • Construction-related trades (15%)

19. Scientific method for job analysis? “…they’ve got a list of roles and every role has to fit…we pick the closest one.” (Manager, Publishing Company, Melbourne) • That can sometimes be difficult… “The [CEO]’s a Paeleontolgist…but he has a passion for bats – so he wanted to bring a bat specialist into SA to look at some bat colonies…found one [bat specialist] in a remote island off coast of Papua New Guinea…” (Manager, Public Service, Adelaide)

20. Occupations/positions… • Employer-driven? Yes, but… lot more needs to be demonstrated: • Certify skills and qualifications commensurate with occupation • Need the skills – but not the quals? • Methodology used to determine market rate • Language proficiency test • Business information • Even if long history as sponsor

21. Changes for 457 visa workers: • Responsible for private health insurance • Remuneration – Australian market rate salary or above • Changing jobs – • No longer have to apply for new 457 visa • If new employer already approved sponsor – lodge nomination application • If new employer isn’t an approved sponsor..? • Back to the drawing board…

22. Implications: Two-tier system of Sponsors? • Larger employers have no problem in meeting requirements? • More likely to meet them • Previously 5-6 week process; • Now approx. 3 months. • If they have problems, there are options: • Sponsor 457 workers for PR • Transfer to Regional Sponsor Migration Scheme (easier requirements; eligible for Medicare…)

23. Small businesses more difficult… • recording; • E.g., training: 1% of wages or 2% to recognised training organisation • monitoring; • Reporting… • How many people trained? • How many people speak English as a second language?

24. “…if you look at all the different schemes we have for local people – apprenticeships, traineeships and they’re actually given a subsidy to take on board people. But if you take on board a 457 visa person, there is no subsidy, there’s no nothing, there’s just a penalty if something goes wrong…” (Manager, Secondary College, Perth)

25. Implications: Two-tier system of 457 visa applicants? • Professionals, engineers.. • Applicants driven by crime, lifestyle, over-population, pollution… towards Australia… “But if you just go out into the labour market and say, I’ve got a job for you in Australia, and it pays x amount of dollars, we can’t compete.” (Migration Agent, former DIAC Manager, Sydney)

26. Skilled (but unqualified) applicants: “The skills we were targeting weren’t covered under ASCO.. We weren’t looking for tertiary-qualified people – we were looking for experienced people with sound knowledge of that particular field.” (Managing Director, AgriBusiness, Adelaide)

27. Responsibility for private health insurance; but “Try telling that to someone in Papua New Guinea...” (Manager, recruiting for Shovel Operators in Mining Company, Kalgoorlie)

28. Coming up… watch this space • State and Territory Migration Plans – Memoranda of Understanding • Between Minister for Immigration & Citizenship and State/Terr Govt Minister • Specifying: • no. of applicants (Skilled Migrants) each govt can nominate • Range of eligible occupations they can nominate for.

29. In summary? “Just as we need to strengthen our gene pool by having a good mix, we also need to strengthen our skill pool… Immigration is a matter of national interest and should not be played as a political football, turned on and off at each change in the economic climate.” (Manager, Public Service, Melbourne)