Edith Cowan University · 2016-04-28 · Edith Cowan University Support agency observation • Study participants reported that Australian workers from the East Coast are the hardest

Your School or Centre name here Edith Cowan University

Dr Susanne Bahn A/Prof Llandis Barratt-Pugh

Dr Ghialy Yap Centre for Innovative Practice

Preliminary findings

457 visa workers in the Western Australian resources industry: The benefits and

costs for business, migrant families, and the community – Pilot study


Research Study •  Costs and benefits:

  Businesses employing workers on 457 visas   Workers (families) on 457 visas   Australian Community

•  First study in Australia – mixed methodology •  Unique in that it seeks the views of the workers on 457

visas •  Funded by AMMA and ECU – 12 months (2012) •  Preliminary observations as data analysis is underway with

final report due at the end of the year.


Background •  Australia has entered another resources boom due to the

global demand for its resources and this growth in turn is driving major infrastructure projects (BIS Shrapnel, 2009).

•  Such expansion requires adequate numbers of specialised

skilled workers which presently Australia is unable to meet (Skills Australia, 2012).

•  This study is important as it will inform public debate about how best to ensure adequate numbers of skilled workers for the Australian economy.


Previous research •  Supporters of skilled migration argue that in periods of rapid

growth the Australian economy lacks the capability to train sufficient domestic workers within the timeframe industry requires (OECD, 2002; Roach Report, 2005; Evans, 2008).

•  Opponents argue that such actions place Australian jobs at

risk, reduce domestic skills training (Toner & Woolley, 2008) and that the 457 workers are at risk of exploitation through reduced wages, conditions and political and social rights (Oke, 2010; Jockel, 2009; Deegan, 2007; ILO, 2003).


Study research questions •  What are the benefits to business, communities and

migrant families from employing 457 workers? •  What are the costs to business, communities and migrant

families from employing 457 workers? •  What are the implications of the study findings for policy

and practice? •  What are the issues encountered by business, migrant

families and communities when employing 457 workers? •  What support do business, migrant families and

communities need when employing 457 workers?


Study methodology – quantitative •  The quantitative data for the project is drawn from statistics collected by

the Department of Immigration and Citizenship (DIAC) between 2007-2012 of:

  the number migrant families entering Australia on 457 visas,   what businesses they were employed in,   the work they did,   the numbers that were employed by the resources sector, and   how they spent the money they earned in Australia.

•  Cost Benefit Analysis conducted to provide the benefits and costs associated with employing workers on 457 visas.


Study methodology – qualitative •  The qualitative data for the project included

interviews with:   30 workers on 457 visas,   17 representatives of 15 businesses who are

employers of workers on 457 visas,   7 representatives from support agencies, eg:

Migration Agents, Relocation Agents and community groups.


Findings for this presentation •  Cost benefit analysis has not yet been

completed, •  Interviews are currently being transcribed, •  Draft report is in preparation.   This presentation: •  Preliminary observations of emerging themes in the data,

with a •  Focus on workers on 457 visas perceptions of issues and

benefits of working in Australia.


Study sample demographics (26 workers sampled)

Occupation Managers/Directors 15% Engineers, Technicians and related professionals 58%

Clerical and Administrative Workers 23% Trades (eg Chefs, Boiler Makers) 4%

Length of time in Australia Less than one year 42%

1-2 years 34%

Two years or more 23% Marital Status Single/Separated 34%

Married/de Facto 66%

Number of Children None 46%

1 19%

2 19%

3 15% Family in Australia Yes 50%

No 50%


Study sample demographics Country of origin UK 27%

Philippines 23% Scotland 12% Ireland 8% South Africa 8% Other 23%

Age range 20-24 years 4% 25-30 years 23% 31-40 years 30% 41-50 years 27% 50+ years 8%


General observation •  Three strategies to respond to skill

shortages:  1) training and retraining of Australian workers,  2) continued temporary migration of overseas

skilled workers,  3) encouraging and supporting skilled Australian

workers to move interstate.


Tentative preliminary findings •  Study participants explained that temporary

overseas workers are sought because:

 Some work required very specialised training,  International companies are utilising their global workforces to

move from project to project,  The FIFO requirement for many resources jobs acts as a de-

motivator for Australian workers,   The high cost of living, lack of infrastructure and remoteness of

Perth is a disincentive to relocate , and   Workers living and working in the regions have limited access to

services normally available in urban cities.


The voice of the workers •  “The infrastructure I think is a big disadvantage for the

place, it just doesn’t have much infrastructure” (Scottish worker).

•  “When we were first out in Leonora it was a bit of a shock I suppose, I got used to it but she (wife) found it hard. I was working but she wasn’t working at the time, so she was on her own and we were out in the middle of the bush and I was away maybe for a day or two in the mine site” (Irish worker).

•  “It’s quite funny like during the week you’d think oh we’ll go and do this, so we’ll go and have a drink and they’re closing or they’re closed! So I think my god!” (UK worker).


Support by business  Visa costs,  Airfares,  Relocation expenses,   Temporary accommodation for at least one month,  Access to relocation Agents. Costs business between $7ooo-40 000 per worker.

•  All workers on 457 visas need some support. •  The level of support depends on the skills of the worker – higher skills =

large relocation packages, lower skills = smaller relocation support. •  Those companies who outsource to relocation agencies spend less and

appear to have better assimilated workers. •  Relocation agents appears to be new and emerging industry.


Benefits to business •  Immediate skills for business growth, •  Contribution to future skills pool, •  Support for regional regeneration, •  Contribution to the economy, and •  Increasing labour market flexibility.


Support agency observation •  Study participants reported that Australian

workers from the East Coast are the hardest to resettle out of all workers, followed by workers from the US, UK and Ireland.  $8 pint of beer in Qld compared to $14 in Perth;  Stick of deodorant $5 in Perth compared to half that in

UK.  Housing in US compared to that in Perth - $600K in

Houston 8 bed, 5 bath home that is 500m2 living, pool, etc, live in maid, pool boy, gardener.


Permanent residents? •  Migrant workers – loyal and most remain in their

jobs – few move to other employers or move back home before the end of their visa.

•  Not all workers become permanent residents:  1) global worker,  2) the work comes to an end,  3) families left back in home country.

•  Businesses will assist in PR costs and paperwork.


The voice of the workers •  “This is how we work all over the world, we are project

contractors so we come into a country and have a few months to do the job. We don’t have much time, we are very much prepared to do the job and solve the problem. But that’s the way we have to make money” (Dutch worker).

•  “For me it’s to go and work in areas that I actually never get to go to. Australia for me is a really nice place to go and the variety in my job is great although I do live in New Zealand” (UK worker).

•  “I know that working in the mines you can be working long hours but really that suits me because my family are back home” (Irish worker).


Issues for workers •  Loneliness and isolation especially for some

US, UK and Irish workers. •  Seek support from online groups eg

websites for ex-pats, FIFO Families. •  Particular problem for wives with small

children and empty nesters. •  Not such a problem for ethnic workers –

embraced by their community and church groups.


The voice of the workers •  “It’s difficult in that we really feel alone, we don’t really know

anyone here. So, getting to know people is difficult in the beginning and we miss our family back home” (South African worker).

•  “Friends! We needed some friends, that’s the most difficult

part of living here. It’s a period of 18 to 24 months to settle in and find a network of friends. You may meet people but you don’t always connect with people so it takes a bit of time and that can be quite a tough period, especially when you have kids and my wife was pregnant at the time. So, it was quite tough for the first year and a half” (UK worker).


Issues for workers •  Must have private health insurance. •  Not eligible for child care rebate – almost prohibits spouse

from seeking work as can cost up to $110 per day per child for child care.

•  Not all workers receive the same amount of assistance – some agencies are paid by both the companies and the migrants raising concerns about profiteering from what is often a complex activity schedule.…….(some charged by agencies to relocate to Australia and the same agency charges business for the workers relocation – double dipping).


The voice of the workers •  “One of the main difficulties is that you are on a 457 visa so you

don’t get all the benefits as a permanent resident. It becomes very difficult to buy a car, a house and health services you don’t get any of those benefits” (South African worker).

•  “It’s almost beneficial for the mother to stay at home, also no cleaning services here and things like that, well there are but in South Africa we had people coming in for quite cheap to clean” (South African worker).

•  “The agency where I applied for they charged me one month’s salary and the employer paid the agency for me to get over here too, so obviously the agency was charging on both sides...the applicant and the employer” (Filipino worker).


Benefits for workers Workers are attracted by a diverse mix of

specialised work, company career, salary, and the option for permanent residency.

•  Equality and respect in Australia, •  Opportunity for career advancement, •  Quality of living, •  Chance to become permanent residents.


The voice of the workers •  “Filipino men don’t have good self esteem because they think that

everyone else is above them. In Australia whether you’re wealthy or poorly educated or not we can eat the same food, it doesn’t really matter we are all equal. They have more choice in Australia” (Filipino worker).

•  “I think my career prospects are a lot better. There’s a lot more room to grow and I can earn a lot more here than I can back in South Africa” (South African worker).

•  “The differences are socially and people’s approach to cultures, so I found the UK to be very very almost aggressive. I lived in America as well and I found America to be naive whereas it’s not the case with Australia. Australia is very very relaxed, there is a lot of space, people are happier and it’s just the little things that make this place a better place to be” (UK worker).


Where to from here? •  Huge amount of data yet to analyse – currently tentative emerging trends •  The experiences and motivation of 457 workers are not homogenous and should

not be stereotyped   Areas to consider:

•  Research into training issues in Australia. •  Knowledge retention and transfer to Australian workers especially for 457 workers

who do not remain as PRs. •  Global workforce – challenges the very nature of work in Australia. •  Impact on family unit of 457 workers whose family members remain in the home

country. •  Policies that could encourage local skilled labour relocation. •  Growth of a labour relocation industry. •  Dilemmas of remotely located work opportunities


Questions?

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Edith Cowan University · 2016-04-28 · Edith Cowan University Support agency observation • Study participants reported that Australian workers from the East Coast are the hardest