Call to Regulate Labour Hire Agencies

The Victorian Government conducted a review into the labour hire industry and also insecure work in 2016. The Inquiry was conducted by Professor Anthony Forsyth from RMIT.

The Government was keen to inquire into the growth of labour hire and the increasing incidence of insecure work.

It wanted to consider any recommendations of the Inquiry that would help better regulate labour hire and give greater security to those who rely on labour hire employment.

 

SDA Input


The SDA made its own 13 page submission to the Inquiry.

As well as the submission, SDA Senior Research Officer Antony Burke appeared before the Inquiry’s chairperson, Professor Forsyth, to present the Union’s submissions and recommendations and to answer any questions.

The SDA’s submission highlighted the huge growth in labour hire and its impact on retail, warehousing and other related industries that the SDA covers.

It highlighted the benefits and drawbacks of labour hire for workers.

The SDA also highlighted the shift to more insecure work, and the growing exploitation of unscrupulous employers of employees on working visas.

Recent examples of international students being exploited at work have come to light at 7-Eleven, Pizza Hut and Domino’s.

In these cases, students on working visas have been deliberately underpaid by unscrupulous franchisees.

The Australian community as a whole is disgusted by this, and has demanded that Australia treats workers on student visas properly and fairly.

The SDA therefore made recommendations to the Inquiry for these workers to be educated about their rights at work.

 

SDA Recommendations


The SDA made the following recommendations to the Inquiry:

  • That labour hire agencies operating in Victoria be registered by a Government body. A Government body must make sure that anyone wanting to operate a labour hire agency in Victoria is registered and run by a fit and proper person or persons.
  • That no person shall be able to work as a labour hire employee unless employed by a registered labour hire agency.
  • That labour hire employees should be paid no less than the on-site rates and conditions in the enterprise agreement applying to the site.
  • That the State Government must undertake an extensive education program in universities, TAFEs and education colleges to inform potential employees of labour hire agencies and those on student visas of their legal working entitlements.

 

Inquiry Recommendations


In August 2016, the Inquiry’s final report was produced.

It made 35 important recommendations to help regulate labour hire and promote more secure and properly paid labour hire employment.

 

Government Response


The State Government has given its response to the Inquiry’s final report.

The Government has accepted the need for the labour hire industry to be properly regulated.

To begin with, it will call on the Federal Government to implement a national licensing scheme for regulating labour hire agencies.

In the meantime, the State Government will look to target specific industries for Victorian-based regulation of labour hire agencies. The Federal Government is also looking at the need for legislation to protect labour hire workers from exploitation.

The State Government has also supported the SDA’s call for labour hire employees to receive on-site rates of pay and conditions.

The SDA will continue to lobby State and Federal Governments to improve the position of labour hire employees, and will be working with other unions to achieve some outcomes.

 

This article was originally published in The Shop Assistant Journal - Winter 2017: Vol 81, Iss 2.