The Australian Information Industry Association (AIIA) expressed reservations today over some recommendations made in the report of the Visa Subclass 457 Integrity Review, released by the Minister for Immigration and Citizenship, Senator Chris Evans, on Friday 14 November 2008.
Of immediate concern is the recommendation proposing to favour market rates of pay for all temporary visa holders on salaries less than $100,000.
“Using market rates of pay for all temporary visa holders on salaries less than $100,000 will add to the costs of engaging skilled workers, and make it difficult for Australian ICT companies to be internationally competitive in the context of Australia’s changing demographic and skill needs,” said AIIA CEO Ian Birks.
AIIA accepts the need for certain safeguards to protect the interests of Australian and international employees, and welcomes initiatives in the Report to maintain the integrity of the Visa Subclass 457 system.
“However, AIIA contends that the minimum salary level conditions should be constructed to reserve adequate employment openings for young Australians and recent graduates seeking their first job,” Mr Birks continued. “The suggested minimum salary level for graduate starting salaries would provide an adequate ‘reserve price’ for Australian skilled workers.”
AIIA consulted widely with the ICT industry in the development of the AIIA submission to the review, conducted by industrial relations commissioner Barbara Deegan. The Association is currently examining the report and will be seeking additional comments from members on the possible impact of the recommendations contained in the report.
“AIIA accepts that employers should be able to recruit from within Australia's workforce supply channels as much as possible,” said Mr Birks. “However, this is not always possible for sound economic and business reasons. The simple fact is that ICT employers may not be able to recruit the required number of appropriately skilled workers meet current business needs from within Australia.”
Australia is facing a widening gap between the demand for ICT skills and the supply of qualified ICT workers; many employers are experiencing difficulties recruiting people with the right skills for a wide range of ICT positions. The Visa Subclass 457 program is highly valued within the ICT and related industries, as it is designed to meet business requirements for skilled overseas workers on a temporary basis.
“The shortage of ICT qualifications in the Australian market has many causes. For example, the decline in Federal Government investment in higher education over the past decade, along with the imposition of HECS, have impacted on the supply of qualified ICT graduates from Australian tertiary institutions. Declining university enrolment rates means less graduates entering the Australian labour market and presents many employers with difficulties when recruiting workers,” said Mr Birks.
“The ICT industry has high intakes of business, permanent, temporary, and student immigrants. It is essential that Visa Subclass 457 remains effective for the temporary entry of skilled labour to meet the business and industry development needs of ICT companies. As the largest user of the 457 Visa program and a major driver of productivity across many industry sectors, the views of the ICT industry should be particularly heeded in the deliberations of the Consultative Panel,” Mr Birks concluded.
AIIA’s submission to the Deegan Review is available through the AIIA website.
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