The following paper concentrates on the abolition of the Temporary Work (Skilled) (subclass 457) visa and had replaced it with the new kind of visa named the Temporary Skills Shortage (TSS) visa in Australia. Significantly, this huge change has impacted in a huge way in the workforce that comes from outside countries to live in Australia and work for the Australian organizations. This change may be a political game for the current Australian government as they want to overrule the Temporary work 457 visa. This visa was approved by the Australian government in the year 1996 by the then Australian Howard government. Certain industries have been affected largely because of this because of the workforce shortage. The very simple logic they use is that if they use the workforce form the other undeveloped countries, they have to pay less wages to the. The native Australians will never agree to work at such a lower wage.
The top union body of New South Wales had found that the migrant workers who come from their countries to Australia to earn their livelihood are likely to be paid much less money than those of the native people (Webb & Gray, 2013). This underpayment is below the national standards and this is a matter of worry. They have felt that this practice must be stopped to establish equality in the wages. They gathered the data that almost four of the five jobs were paid under the natural rate. This amounted to 80%. The NSW Union wanted to push the rights for the proper payment to the workers and they wanted to use their collected data for this. The problem lies in the root that the migrant workers are often unaware of their rights about payment. They found an instance that a woman from South Korea was employed in the NSW Union as a translator and she said that the employers who pay below the national standard wages often tried to justify their means by some way or the other. They were pretty sure that they were deceived by their employers as they were very much underpaid. Other migrant workers have expressed their opinions in the same way as well. A renowned lecturer has also expresses his grave concern over this issue saying that under payment for the workers has been on the rise in the last two decades (Piracha & Vadean, 2013). The reason of this problem has been identified as there has been perceived a huge rise in the temporary migration and the workers being hired in the organizations are mostly the vulnerable workers. The crisis has reached at such a point because there are very few numbers of inspectors to cover every workplace in the country so the employers get the chance of escape from the legal harassments. The national standard payment for the workers is fixed at $53,900 and the temporary workers have been paid much below that rate 9Britt et al., 2012).
The 457 Visa in Australia was designed by the Howard government in 1996 to emphasize on the temporary workers who lived in Australia and earned a livelihood. This was implemented by Prime Minister John Howard (Singleton et al., 2012). This Visa program was for the employers who employed the workers from overseas on a temporary basis. Later, it was found that almost 40% of the workers living in Australia from overseas did no longer work for their employers and the people who did work, were paid lower wages. The criteria for being a 457 Visa holder was that the people coming from the overseas must be able to work in Australian with a short-term six months Visa before they could apply for a new Visa. These reports conducted and collected by the Fair Work Ombudsman had created a big reason for worry in the country (Stewart & Owens, 2013). The condition began to deteriorate from the end of 2014 when the Department of Immigration and Border Protection had warned the government to put some relaxation on the rules and regulations in approving the 457 Visa (Singleton et al., 2012).
The current Prime Minister of Australia, Malcolm Turnbull very recently decided to abolish this kind of Visa and introduce the TSS Visa. He explained the probable reasons for that were he thought Australian people should get more chance to work in Australia though it is considered as in immigration nation. There was a thorough data collected about the implications of the 457 Visa and this showed that the numbers allotted for allowing workers in Australia were going out of control and quality wise, some of those workers were utterly foolish (Bahn, Barratt-Pugh & Yap, 2012). In this scenario, the native Australians were deprived of chances to seek a job. There has been a wide range of protests coming framing from different parts of the society. The Australian Industry Group’s Innex Wilson had remarked after this incident that this is a sheer show of anti-immigration sentiment from the Australian government led by Turnbull. The Labor party has also attacked this incident as well (Kefford, 2013).
Some of the industries have been affected in this context as they have to find new workers and pay higher wages to the. As a result, they have to increase their production costs as well. The kinds of occupations that will be mostly affected by this abolishment of the 457 Visa are the Information-Technology industry, Hospitality and Leisure industry and many others. The Information-Technology sector will also be hampered due to this decision (Schwalbe, 2015). Several people come to Australia on a short-term basis for study and then perhaps get good jobs there for the best companies. These opportunities may end because the recruitment process in this industry may have to be cut down at a certain extent if this decision is properly implemented. This is because many IT roles have been listed off from the preferred professions. The CEO of the IT Industry Group in Tech Sydney viewed his opinion that IT practice is kind of a job that cannot be taught but it has to be done by gaining experience (Schwarzer, 2014). The fact is that the people who have this experience are overseas and the government has set barriers to recruit them. The hospitality industry will be affected in a large way as well because around 15000 people work in Australia from overseas work in Australia are related to Accomodation and Food services Industry with the most important roles holding 457 Visa are tat of the chef, cook, and restaurant or the caf? managers (Mok, Sparks & Kadampully, 2013). Some other positions thathave been removed out of the industry are the bed and breakfast operator and travel agency managers. These have been the drawbacks of abolishing the 457 Visa ban from Australia.
The new visa called the Temporary Skills shortage (TSS) will look to comprise of a short-term period of two years instead of six months and the long-term period of four years. The basic skills required to attain this visa are proficiency in English language, labor market testing and earlier skilled work experience (Duncan & Dunifon, 2012). The holders must possess a mandatory police clearance certificate to ensure cleanliness in the recruitment process. The key stakeholders behind this are the government, the heads of the business organizations and legal persons. The business organizations must check their background and previous working experience. This would also ensure that the migrated workers do not become victims of lower wage payment. This would assure that the employers must pay the migrated workers the minimum Australian market salary rate i.e. $53,900. The workers who want to hold the TSS Visa are required to pass the IELTS 5 test for English proficiency (Council, 2017). As this program has to be implicated, the employers can tend to use the 457 Visa program and the current employees can begin to lodge applications for the employer nominated permanent residence under both the legal frameworks such as Employer Nomination Scheme Direct Entry Stream and Temporary Residence Transition Stream until March 2018. There will be no permanent residency pathway for the TSS visa holders (Johnson, 2017).
These reforms in the visa system may incur the fact that the inefficient and foolish kind of workers can be prevented by the government and have jobs by depriving the native Australians (Johnson, 2017). However, many such industries like the IT industry and the hospitality and leisure industry may face severe consequences in recruiting new employees from overseas on a short-term basis. Another fact that they have to maintain the minimum Australian market salary will make them increase their production costs (Shepherd, 2015).
This paper can be concluded by saying that the banning of 457 Visa has left big impact on the business environment in Australia. The Australian market will face severe setbacks in managing workforce because they would not be able to get so much people working for them in so less wages. In this perspective, their profits may decrease and their production costs will increase as well. The human resources will drop off and they will need to engage people at a higher salary than they used to pay before. The iT industry will suffer a setback as well as most of the talented people in this industry are available in overseas only.
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