Problems relating to Trade and Investment on Australia
16. Employment |
|||
Issue |
Issue details |
Requests |
Reference |
| (1) High Labour Cost | - International competitive edge of the Australian business has been declining in general, while the high labour cost presents managerial issues to deal with. - MFS, being operated by local staff in sales and administration, incurs a high percentage of operational expenses for personnel cost (especially from the minimum wage, overtime premiums for work on Sundays and national holidays), while the minimum number of the requisite employees is fixed, leaving little room for cost reduction therefore MFS faces tough situation with low profitability. |
- It is requested that GOA deregulates the requirements (particularly, the minimum wage) for accepting overseas' workers. - It is requested that GOA takes step to rectify the personnel expenses based on the international competitive edge of the Australian business operations. |
- Migration Act 1958 - Fair Work Act - Labour Act |
| (Action) - Since January 2010, Fair Work Act 2009, relating to workplace relations, and for related purposes, has been in force. It incorporates National Employment Standards (NES), providing the 10 minimum employment entitlements that have to be provided to all employees. |
|||
| (2) Downward Rigidity of LEWs Wages | - The downward rigidity of wages for Locally Employed Workers (LEWs) oppresses management by way of increased cost and difficulty in securing human resources, a factor that weakens the cost competitiveness of the Australian industry. | - It is requested that GOA takes step to rectify the problems by legislative system. | |
| (3) Shortage of Skilled Workers | - The shortage of skilled workers persists in Australia so that there are occasions where acceptance of foreign workers becomes necessary. | - It is requested that GOA: -- substantially deregulates the requirements for issuance of the Temporary Work (Skilled) visa (subclass 457), and -- simplifies the visa acquisition procedures. |
- Migration Act 1958 |
| (4) Jacked up Acquisition Cost and Prolonged Procedures for Expatriate's Visa Acquisition | - Amendment of Migration Act on 1 July 2013 (2013 Amendment), jacked up the acquisition cost of expatriates' visa, while the prolonged examination period is a matter of concern. Moreover, 2013 Amendment requires separate payment of visa acquisition cost also for the accompanying family member(s), not required previously. Further increase has been in effect from 1 September, 2013. Moreover, for the occupational category at less than the basic wage, minimum IELTS 5.0 scores have become additional requirements. |
- This Amendment is sequel to remote area allowance levy in 2012, addressed to foreign workers. It is requested that GOA streamlines the visa acquisition procedures and cuts down its examination period. | - Migration Act 1958 |
| (Action) - A 3-step (sponsorship nomination long-term work visa) applications and licenses are required to obtain Temporary Business (Long Stay) - Standard Business Sponsorship (Subclass 457 Visa). The requisite documents for Subclass 457 Visa application includes among others passport, Form 1066, Marriage Certificate, Sponsorship Permit, Qualification Examination Document, and if the applicant stays for more than one-year, Health Certificate, Personality Examination, Document showing the past entry/departure records, etc. Furthermore, a certain level of English language skills is required for residents whose mother tongues are not English. If an application is sponsored by Australian enterprises, the Internet application is accepted. However, if it is sponsored by a Japanese enterprise, application must be filed at the Australian Embassy in Japan. - On 5 May 2008, Minister Evans, Department of Immigration and Citizenship (DIAC) announced: 1) A special team will be placed in Sydney, Melbourne, and Perth to ensure a smooth processing of Subclass 457 Visa applications; and 2) Improvement measure will be implemented as soon as possible to employ the fast track on Subclass 457 Visa applications by enterprises with a sound performance record. - On 16 March 2009, Senator Chris Evans, Minister for Immigration and Citizenship, announced: "The Rudd Government will cut the 2008-09 permanent skilled migration program by 14 per cent [from the initial plan of 133,500 to 115,000 persons] to protect local jobs while ensuring employers can access skilled professionals in industries still experiencing skills shortages." - On 1 July 2009, Ministry of Department of Immigration and Citizenship released a partial change in the examination of Subclass 457 Visa, which is a long stay business visa. The change calls for examination of skills for welders, motor mechanics, chefs and cooks, fitters, and metal fabrication workers from 10 countries, namely, Brazil, Fiji, PRC, India, Papua New Guinea, Philippines, South African Republic, Thailand, Vietnam and Zimbabwe for the sake of assuring security and preventing illegality. The release also refers to the planned future additions of the subject countries and the job description. - On 1 July 2009, Ministry of Immigration and Citizenship amended in part the Regulation under which "The minimum salary levels for Temporary Skilled Overseas Workers (subclass 457 visas) will increase by 4.1 per cent from July 1 ...", This makes the minimum salary levels per annum for workers holding Subclass 457 Visa at A$45,220 and for IT related workers, at A$61,920. - On 18 February 2010, Ministry for Immigration & Citizenship announced that the 457-Visa issued during July 2009 through January 2010 was a reduction of 47.4% in aggregate. - As of February 2010, generally it takes about one month to have the 457-Visa issued from the filing date of application. This is an improvement compared to the latter half of 2009 when it used to take more than 3-months. (JETRO News Letter dated 26 February 2010, JETRO TSUSHO KOHO). - On 1 July 2013, federal government amended the requirements for acquisition of temporary skilled overseas workers (subclass 457 visas). It has further tightened the terms and conditions for acquisition of subclass 457 visas, making more stringent, including the requirement to provide on the job business training to the Australian employees and to permanent visa holders, the cap on the employees allowable for sponsorship, skill assessments requirement, repeal of exemption of English language skills by work. |
|||
| (Improvement) - On 14 October 2014, federal government announced relaxing temporary work (skilled) visa (subclass 457) requirements. The thrust of the amendments are: (1) simplify the review for low risk applicants (2) increase the sponsorship approval period from 12 to 18 months for start-up businesses, (3) provide greater flexibility in relation to English language requirements for 457 applicants (4) retain the temporary skilled migration income threshold at $53,900, ahead of a review within the next two years. |
|||
| (5) Indefinite Procedures / Time for Acquisition of Expatriates' Visa | - Upon filing application for visa acquisition, the requisite time for its acquisition varies by large margin from the broad guidance given. Uncertainty on this point can materially disrupt the corporate personnel movement plan (in the case of Japanese affiliated enterprises). Moreover, the approval process and the requisite time are uncertain. - Electronic travel authority: The number of cases has increased whereby entry/exit under ETA visa to and from Australia is interrupted upon immigration examination, although it has not yet occurred in the case of a reporting member firm. It is said that in one case, visa was canceled, or in another case, re-entry into Australia suspended for the subsequent 3-years, or in third case, employer was investigated for compliance, monitored, or even penalised in some other cases. There is a concern that occurrences of such events could affect subsequent renewal/application procedures for expatriates' visas, or for renewal or application of sponsorship. In addition, several different responses came back to enquiries made to department of immigration and border protection that show there are communication problems in the department. |
- It is requested that GOA clarifies the terms and conditions for visa acquisition. - It is requested that GOA takes step to: -- put a stop to indiscriminate canceling of entry visas for mid-long term or frequent entry with legitimate reasons, also -- extend its helping hand in dealing with refusal of entry at immigration, and for taking actions as necessary. |
|
| (Improvement) - Under agreement between Japan and Australia Economic Partnership Agreement enforced on 15 January 2015, "The Chapter on Movement of Natural Persons" provides undertakings between the parties concerning temporary stay permit of natural persons, a business visitor, an intra-corporate transferee, an investor, etc. and accompanying spouse and children, and simplification of requirements, while expediting and improving transparency of the procedures. |
|||
| (6) Negative Impact on Investment from Over protection of Workers | - Due to the labour protection policy, there are cases where employers are compelled to absorb the excessive labour rights, a factor causing "cost overrun" syndrome in investment into business. - In Australia, employees' right is heavily protected so that even a change in the assigned work requires the employee's consent. In addition, abundance of strikes led by Trade Union drives up the operation cost, debilitating the competitive edge in export business. - Premium wage for overtime, weekend, and holiday work, and statutory minimum wage frustrate SMEs operators' efforts to develop their business. A reporting member firm frequently receives consultation from them how best to cope with this difficulty. It is difficult to cope. It is almost impossible to give them good advice. |
- Labour Protection in Australia is prominent among the developed countries. GOA's effort for its moderation is much hoped for. - It is requested that GOA takes step to relax assertion of workers' right. - It is requested that GOA takes step to modify employment legislation to make it more compromising and practicably feasible for SMEs operators. |
- Labour Laws - Fair Work Award |
| (Action) - Since January 2010, Fair Work Act 2009, relating to workplace relations, and for related purposes, has been in force. Apart from the 10-minimum employment entitlements (10-MEE) that have to be provided to all employees, it sets forth labour arbitration by industrial sector and by business sector. |
|||
| (7) Inflexible Posture of Trade Unions at Labour Management Negotiations | - Improvement in productivity and flexibility is indispensable for business entities to remain winners amid the fierce competition and to run business on a stable, competitive basis, the fruits of which materialise as improved working conditions. While employers negotiate with trade unions for fair wages and working conditions on the principle of good faith under the going labour law on collective agreement, trade unions focus only upon improvement of working conditions, threatening decline of the competitive edge of employers' business entity, casting doubt on continuation of the business operation to the end of the year 2017. - Due to the trade union led strikes, the construction work can be delayed. - The power of trade unions is quite significant at the construction site in Australia, making management of cost and construction process extremely difficult, while causing drop in profitability. Particularly in Victoria state, trade unions are too strong for Japanese enterprises to operate from scratch construction business successfully. |
- It is requested that GOV weaves into the Fair Work Act a Process, whereby during labour bargaining the Trade Union undertakes to cooperate with employers for improvement of productivity / flexibility in enterprises' operation. - It is requested that GOA takes steps to: -- strengthen the Bureau of Mediation's authority in regard to new Collective Agreement, and -- make more stringent the requirements to authorise labour disputes. - For the successful run of the construction site operation, the review on the status quo of the local trade unions is imperative not only for FFEs but also for local industry. |
- Fair Work Act 228 Bargaining representatives must meet the good faith bargaining requirements - Fair Work Act - Industrial Relation Law - Labor Law |
| (8) Difficulty in Holding Down Invocation of Labour Disputes, Suspension, or Termination of Industrial Action | - Trade unions can readily plead industrial action, which cannot be readily suspended or terminated unless the Fair Work Commission (FWC) is satisfied that the protected industrial action would cause significant harm to the Australian economy or an important part of it. During the industrial bargaining in 2011, a Japanese affiliated manufacturing enterprise experienced 4-times of strike, but its application for termination To the Fair Work Australia (FWA, predecessor of FWC) got rejected because of the excessively high basis for interpretation of what amounts to "significant harm". - Led by the trade union, protest movements have arisen, while their impact always exists as risk to the production activity. At the regular negotiation for collective agreement amendment, employers have but meager countermeasure against the trade union's unrealistic demands. Scrap-and-build of factories, measures taken in the course of medium-and long-term management strategies, are at the risk of triggering industrial disputes. They heavily impact business activity. While paying attention to the current administration's move for legislative amendment, it appears, it's a long way to make radical legislative changes. |
- It is requested that GOA reviews the judgement basis of what amounts to "significant damage" in an industrial action. - It is requested that GOA amends the going fair work act (for simpler, and speedier mediation process, and for restricting trade unions activity devoid of balance and fairness, and adequate reinforcement of fair work commission's authority.) |
- Fair Work Act 2009, Article 424 FWA must suspend or terminate protected industrial action---endangering life etc. - Fair Work Act |
| (9) Rampant Sporadic Absentees | - The rules are lax under the going Fair Work Act concerning prior submission of emergency leave notice or medical certificate in proof of accident and sickness. As a result, rampant sporadic absentees slow down production / business activity also in private enterprises. | - It is requested that GOC weaves into "Notice and evidence requirements" the rules to deal with sporadic absentees, the solution of which is beyond private bargaining of an enterprise. [Example]: Mandate for submission of medical certificate or voucher for all sporadic absentees. |
- Fair Work Act, Article 107, Notice and evidence requirements |
| (10) Cost Increase due to Securing Drivers' Safety | - Suppliers and transportation operation contractors are responsible for securing the safety of their drivers (from overwork and by arrangement of an adequate operational plan). In addition to the car drivers' insurance, employers incur the cost of proper training and labour control. This is one of the factors that drive up the transportation fees. | ||
<<BACK |