No names, no pack drill, but here's how to rort the 457 temporary worker visa system and whatever the government renames it.
Let's use an example of, say, refrigeration mechanics. This is a skilled area in demand. Yes, we increasingly want air-conditioning despite all the government backbenchers who don't believe in climate change.
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There is an award for the job, but nobody with the skills works at the award wage – they're better paid thanks to the demand for their services.
So Dodgy Brothers Refrigeration advertises for refrigeration mechanics at the award wage and, surprise, surprise, receives no local applications.Â
Under both the existing and proposed systems, this means Dodgy Brothers can charge ahead and hire foreign workers, perhaps in theory paying them the market rate, but more likely the award or the minimum guest worker salary ($53,900  a year – and it hasn't changed since 2013). In any event, it's a good deal less than the labour costs of the competitors genuinely competing in the local jobs market.Â
Dodgy Brothers gains an unfair advantage over its competitors. It also keeps a lid on refrigeration mechanic wages instead of escalating them to the extent of attracting more people to do the training to join the skilled trade.Â
And this example is why the government's rebranded 457 visa scheme falls short.Â
No, you can't trust employers to do their own labour market "testing". You do need an independent body. That's what the coalition's own Azarius report recommended in 2014. It looks like that is not what is desired by the business lobbies that have the government's ear.
![A temporary worker system, properly run, is of great benefit to the nation.](http://web.archive.org./web/20170610084034im_/https://www.fairfaxstatic.com.au/content/dam/images/g/v/n/7/x/b/image.related.articleLeadwide.620x349.gwmt9s.png/1497009230871.jpg)
A temporary worker system, properly run, is of great benefit to the nation. It makes up for the past lack of investment in skills and can smooth the peaks and troughs of labour demand.Â
When there are simply not the skills available – for example, doctors and nurses just a few short years ago – 457s saved lives.Â
![Malcolm Turnbull said the 457 visa policy change would ensure 'we are putting jobs first'.](http://web.archive.org./web/20170610084034im_/https://www.fairfaxstatic.com.au/content/dam/images/g/v/o/v/v/g/image.related.articleLeadwide.620x349.gwmt9s.png/1497009230871.jpg)
During the height of the resources construction boom, temporary workers helped prevent inflation jumping with the inevitable consequence of uncomfortably higher interest rates that would made life more uncomfortable in the cities as businesses were squeezed and jobs lost. Â
In areas of particular talent shortages, of rare talent, such as some of the reported university research cases, 457s deliver opportunities for the nation beyond the bare numbers of visas issued. There always is a global shortage of the absolute best talent, always a war for talent. At a time when the lunacy of a xenophobic American president is giving us an advantage in attracting stars, it looks like we're going to shut the door.Â
![Chef Colin Fassnidge arrived in Australia thanks to a 457 visa.](http://web.archive.org./web/20170610084034im_/https://www.fairfaxstatic.com.au/content/dam/images/g/u/z/e/2/q/image.related.articleLeadwide.620x349.gwmt9s.png/1497009230871.jpg)
The relevant minister, Peter Dutton, as "signalled he is willing to compromise" with the universities, but the detail is yet to be seen.
And then there have been the benefits for both guest worker and nation of using the 457 route to "try before you buy" as permanent residents.Â
![Illustration: Matt Golding.](http://web.archive.org./web/20170610084034im_/https://www.fairfaxstatic.com.au/content/dam/images/g/k/5/z/x/2/image.related.articleLeadNarrow.300x0.gwmt9s.png/1497009230871.jpg)
It was a Productivity Commission recommendation that 457s not be given an advantage in seeking permanent residency. Now the government threatens to put them at a disadvantage. That doesn't make sense at all if a priority should be to attract the best possible talent.Â
Never mind. Some benefits of the existing system will be weakened, $1.2 billion in fees will be raised, some excesses ended, but the unscrupulous will still be able to rort the new one. One step forward, two back.Â
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