The ‘insidious’ impact of labour hire on central Victorian workers

The government has begun talks on how to roll-out a labour hire licensing scheme in regional areas following a ‘damning’ report which heard of widespread worker exploitation in central Victoria. 

Lockwood-based Hazeldene's and Castlemaine-based KR Don were among the companies named in the Labour Hire Industry and Insecure Work report released last month. 

Industrial Relations Minister Natalie Hutchins met with the Ballarat Regional Trades and Labour Council today to examine how a labour hire licensing scheme could work in the region.

The report uncovered award wage underpayment, tax avoidance, non-payment of superannuation, poor occupational health and safety practices,maltreatment of workers and backpackers on visas and even some illegal conduct.

It found exploitation particularly prominent in the horticultural, meat and contract cleaning industries, as well as systematic underpayment and mistreatment or workers. 

But Ballarat Trades and Labour Council secretary Brett Edgington said this and recent high-profile media exposes were the tip of the iceberg and that the extent of this exploitation was yet to be revealed.

He described the effect of labour hire as “insidious,” using KR Don as an example of how it could be used to erode pay and conditions and squeeze out full-time employees.

Mr Edgington said the Castlemaine plant’s workers accepted the hiring of short-term employees before Christmas to meet large orders of hams. 

“That was all good, except the labour hire doesn’t leave after Christmas,” Mr Edgington said.

“Then the workers who’ve been there for years and years and years suddenly have to sign flexible work agreements where their shifts start getting compacted and days start disappearing.

“And what happens is that labour hire starts taking over some of those shifts and their flexible roster becomes smaller and smaller and the labour hire roster becomes bigger and bigger.

“So that’s the insidious nature of labour hire – it’s supposed to meet short-term demand but companies are now using it more and more to exploit loopholes in the Fair Work Legislation, to be able to undercut awards and agreements, underpay and get around safety rules.” 

Minister Hutchins said the state government would use the report to establish a labour hire licensing scheme across Victoria to “stop the widespread exploitation of workers and put their rights first”.

“We were elected to put people first – and that means a licensing scheme to change workers’ lives for the better,” the minister said. 

“The findings in this report were damning.

Now, we’re taking steps to protect the rights of workers across Victoria.”

– with The Courier