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MEMBER for Bendigo Lisa Chesters says Don KR Castlemaine should work together with Bendigo employment agencies, skills providers and TAFE to make sure local workers are qualified for jobs.
She said she was disappointed with the company's decision to continue using 417 backpacker visa holders to fill a labour shortage into 2015.
Don KR Castlemaine hired up to 100 backpacker visa workers as production is up 25 per cent on this time last year.
Managing director Stuart Grainger said the workers were needed to meet the short-term demands, and almost always met the required food handling standards and attendance requirements.
Ms Chesters said the company should be willing to put resources into training workers in the region.
"When it comes to food handling, they should be willing to train local people to do the job, if that's the reason why they aren't hiring them," Ms Chesters said.
"I just don't believe that there aren't enough people locally.
"That claim from the company isn't what I'm hearing on the ground.
"They should be engaging with myself and Jacinta Allan, employment agencies and TAFE to find ways to get local people into these jobs."
She said youth unemployment in the region is "exploding", meaning employment opportunities were needed now more than ever.
Ms Chesters supports the Australian Council of Trade Unions' call for an inquiry into 417 visas and plans to again raise the issue in Federal Parliament when it returns next week.
She said she had heard a number of stories about people on the visa being exploited in the workplace.
"There are stories of people being underpaid, paid per hour, not being offered affordable housing, having to pay huge bonds to the employment agency," Ms Chesters said.
"It was originally designed for picking up a few days of work while here in Australia, but it's clearly being exploited."
Don KR Castlemaine management plan to have a meeting with Ms Chesters in the coming weeks to discuss her concerns.