4. Backpackers

The CFMEU believes that young Australians are being denied employment opportunities by a rapidly increasing Working Holiday Makers Visa program. This program allows young people, predominantly from the United Kingdom, Ireland and Japan to holiday and work in Australia over a 12 month period. The program also allows for young Australians to travel and work overseas.

The table below shows that the program has grown from 25,557 visas in 1992-93 to 65,000 visas in 1998-99. However, in 1997-98 only 22,000 Australians travelled overseas on the program.

The Department of Immigration and Multicultural Affairs has done minimal work on the labour market impacts of this scheme. A survey of 438 working holiday makers and 103 employers was conducted in 1995. (Murphy, J. The Labour Market Effects of Working Holiday Makers, 1995) Anecdotal evidence suggests that many Working Holiday Maker visa holders are working as labourers on Australian building sites.

In September 1999, a joint operation between the National Crime Authority and the Australian Taxation Office led to charges being laid against five people in connection with a massive scam operating in the construction industry. In reporting the arrests the Australian Financial Review stated that:

“Backpackers may be employed by the labour hire companies involved in such schemes, and paid in cash to avoid tax liabilities.” (‘Crime authorities crack down on budding bodgie’ Australian Financial Review, 2/10/99)

In addition, the presence of backpacker labour with an entitlement to work (for limited periods) increases the risk of backpackers with no entitlement to work, such as those on visitor visas, working illegally. Clearly, this situation results in reduced employment opportunities for young Australians.

In light of this the CFMEU has called on the Government to reduce the number of Working Holiday Makers entering Australia, improve compliance measures in relation to the construction industry and conduct further research on the labour market impacts of the Working Holiday Maker program.

United we bargain - Divided we beg.

Contact the National Office, Construction Division at:
Level 12, 276 Pitt Street, Sydney, NSW 2000
Ph: 02 8524 5800
Fax: 02 8524 5801
Email: queries@fed.cfmeu.asn.au

Postal address: PO Box Q235, Queen Victoria Building Post Office, Sydney NSW 1230.