final 457 visa report 23 sept 2013 - edith cowan university€¦ · 9" " 1.!introduction!...
TRANSCRIPT
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Recruitment!and!Selection!of!457!Visa!Workers!!by!Smaller!Firms!in!the!Western!Australian!Resources!Sector:!!
Practices!to!Drive!Firm!Growth!!
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Final!Report!!
Centre"for"Innovative"Practice"School!of!Business!
Faculty"of"Business"and"Law"!!
EDITH!COWAN!UNIVERSITY!WESTERN!AUSTRALIA!
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!Professor!Rowena!Barrett!!Dr!Susanne!Bahn!
!Dr!Pattanee!Susomrith!!Mr!Krishna!Prasad!
!!September!2013!!
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©"Copyright"Release"!
This"work"has"been"produced"through"a"research"study"funded"by"the"Faculty"of"Business"and"Law,"
Edith"Cowan"University.""
"
All"rights"reserved."No"parts"of"this"document"may"be"reproduced"or"transmitted"in"any"form"or"by"any"
means,"electronic"or"mechanical,"including"photocopying,"recording,"or"any"information"storage,"display"
or"retrieval"devices,"without"the"permission"of"the"authors.""
"
This"report"was"published"by"Edith"Cowan"University,"Faculty"of"Business"and"Law."Apart"from"any"use"
permitted"under"the"Copyright"Act"1968,"no"part"of"this"publication"may"be"reported"by"any"process"
without"the"written"permission"of"Professor"Rowena"Barrett."Requests"should"be"made"in"writing"to"
[email protected]"or"through"Edith"Cowan"University.""
"
School"of"Business"
Faculty"of"Business"and"Law"
270"Joondalup"Drive"
Joondalup"6027"Western"Australia""
Australia"
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Published by Edith Cowan University
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TABLE!OF!CONTENTS! EXECUTIVE!SUMMARY"................................................................................................................................................"7"1.!INTRODUCTION"........................................................................................................................................................."9"2.!LITERATURE"............................................................................................................................................................."11"2.1"Smaller"Firms,"Human"Resource"Management"and"Recruitment"................................................"11"2.2"The"457"Visa"........................................................................................................................................................"13"2.3"Research"on"Employers’"Use"of"457"Visas"............................................................................................."17"2.4"Resources"Sector"Employment"..................................................................................................................."19"2.5"Summary".............................................................................................................................................................."20"
3.!METHODS"..................................................................................................................................................................."21"4.!PARTICIPANT!DETAILS"......................................................................................................................................"23"4.1"Employers"............................................................................................................................................................"23"4.2"Workers"................................................................................................................................................................"26"
5.!FINDINGS"...................................................................................................................................................................."28"5.1"Employer"Issues"................................................................................................................................................"28"5.1.1!Theme!1:!Skills!not!Available!in!Australia"......................................................................................."28"5.1.2!Theme!2:!Bad!Experiences!with!Domestic!Workers"....................................................................."31"5.1.3!Theme!3:!457!Visa!Workers!Facilitate!Firm!Growth"..................................................................."32"5.1.4!Theme!4:!Positive!Experiences!of!457!Visa!Workers"...................................................................."34"5.1.5!Theme!5:!Desire!for!Workers!to!“fit”".................................................................................................."35"5.1.6!Theme!6:!HRM!Practices!to!Secure!Commitment".........................................................................."37"5.1.7!Theme!7:!Visa!Processes".........................................................................................................................."41"5.1.8!Summary!of!Employer!Issues"................................................................................................................"43"
5.2"Employee"Issues"................................................................................................................................................"44"5.2.1!Theme!1:!Reasons!for!Wanting!to!Work!in!Australia".................................................................."45"
!!!!5.2.2!Theme!2:!Means!of!Acquiring!the!Job"................................................................................................."46"5.2.3!Theme!3:!Employer!Assistance!for!Transition"................................................................................"47"5.2.4!Theme!4:!Experience!of!Work"..............................................................................................................."48"5.2.5!Theme!5:!Concerns!about!Being!a!457!Visa!Worker"...................................................................."50"5.2.6!Theme!6:!Family!Support"......................................................................................................................."51"5.2.7!Theme!7:!The!Future!and!Permanent!Residency!in!Australia".................................................."53"5.2.8!Summary!of!Employee!Issues"................................................................................................................"55"
6.!STUDY!LIMITATIONS"..........................................................................................................................................."55"7.!CONCLUSION!AND!IMPLICATIONS"..............................................................................................................."56"8.!REFERENCES"............................................................................................................................................................."60"
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LIST!OF!TABLES!"Table"1"457"visas"granted"2011[2012"and"2012[(31"May)"2013"............................................................"15"Table"2"Top"three"locations"of"457"visa"holders"by"nominated"position".............................................."15"Table"3"Participants"....................................................................................................................................................."22"Table"4"Smaller"firm"details"......................................................................................................................................"24"Table"5"Workers’"countries"of"origin"and"skills"..............................................................................................."26"Table"6"Age,"salary"and"length"of"time"in"Australia"........................................................................................"27"Table"7"Number"of"children"of"457"workers"....................................................................................................."27" "
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EXECUTIVE!SUMMARY!"Smaller"firms"are"characterised"by"a"lack"of"formalised"human"resource"management"practices"and"
recruitment"and"selection"practices"are"generally"informal"and"ad"hoc."The"need"to"have"workers"who"
“fit”"is"an"important"hallmark"in"smaller"firms,"where"close"working"relationships"exist"and"employing"
the"“wrong”"worker"can"have"a"significant"impact"on"the"firm.""
"Smaller"firms"frequently"complain"about"difficulties"finding"the"“right”"staff."In"Western"Australia,"
investment"in"resource"sector"projects"has"sparked"a"“war"for"talent”"over"skills,"and"compensating""
fly[in[fly[out"employees"for"working"in"regional"and"remote"areas"has"raised"expectations"of"pay"and"
employment"conditions."Resource[constrained"smaller"firms"find"it"difficult"to"compete"in"this"
environment."In"Western"Australia,"457"visa"workers"are"employed"in"the"resources"sector"to"fill"
workforce"gaps.""
"
In"this"exploratory"study"the"following"questions"were"examined:"
" Why"and"how"do"smaller"firms"employ"workers"on"457"visas?""
What"drives"smaller"firms"to"recruit"and"select"temporary"migrant"workers"who"need"to"be"
sponsored"on"a"457"visa?""
What"are"smaller"firms’"experiences"of"457"visa"workers?""
What"are"457"visa"workers’"experiences"of"their"employment"in"smaller"firms?"
Ten"smaller"firm"managers"responsible"for"recruiting"457"visa"workers,"and"20"workers"employed"on"
457"visas,"were"interviewed."Themes"from"the"manager"interviews"included:"skills"not"being"available"
in"Australia;"bad"experiences"with"domestic"workers;"457"visa"workers"facilitating"firm"growth;"
positive"experiences"of"457"visa"workers;"a"desire"for"workers"to"“fit”;"HRM"practices"to"secure"
commitment;"and"complex"visa"processes."Themes"from"the"employee"interviews"included:"reasons"for"wanting"to"work"in"Australia;"acquiring"the"job;"employer"assistance"for"transition;"experience"of"
work;"concerns"about"being"a"457"visa"worker;"importance"of"support"for"the"family;"and"their"future"
and"permanent"residence"in"Australia."
"Firms"employed"temporary"migrant"labour"because"the"skills"and"attributes"needed"in"their"business"
could"not"be"found"in"the"domestic"workforce."Some"recruited"offshore"workers"through"recruitment"
agencies"or"undertook"their"own"advertising;"while"others"used"traditional"methods"of"walk[ins,"
referrals"and"job"try[outs"to"recruit"migrant"workers"already"onshore."In"all"cases"there"was"a"strong"
desire"to"select"workers"who"“fit”.""
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Employing"workers"on"457"visas"incurred"substantial"costs"for"smaller"firms."The"amount"varied"
depending"on"the"value"of"the"worker"to"the"firm,"and"some"employers"were"more"generous"than"others"
in"relation"to"these"costs."Most"managers"regarded"these"expenses"as"an"investment"in"their"firm’s"
future,"because"the"additional"workers"gave"them"access"to"projects"and"contracts"previously"
unattainable."However,"they"also"recognised"that"they"were"in"a"vulnerable"position"with"457"visa"
workers"who"could"leave"the"firm"at"any"stage,"and"benefitted"from"workers’"social"isolation"as"their"
attachment"was"primarily"to"the"firm."HRM"practices"around"relocation,"socialisation,"training,"and"
performance"management"were"used"to"reinforce"this"attachment."Such"practices"were"also"important,"
as"workers"did"not"initially"target"the"firm"that"ultimately"employed"them;"they"were"primarily"
interested"in"a"job"in"Australia."All"20"workers"interviewed"were"interested"in"(or"in"the"process"of)"
applying"for"permanent"residence,"although"not"all"wished"to"live"permanently"in"Australia."
"The"use"of"457"visas"has"been"caught"up"in"the"larger"political"debate"about"immigration,"and"
accusations"of"rorting"the"system"have"been"leveled"at"employers,"but"evidence"was"not"found"in"the"
interviews."All"ten"managers"connected"firm"survival"and"growth"with"employment"of"457"visa"workers,"
who"gave"the"firm"a"short[term"competitive"advantage."This"advantage"came"at"a"cost,"especially"when"
workers"were"recruited"offshore,"and"cost"included"visa"processing"and"relocation"expenses,"
socialisation"practices"and"training"(if"needed)."Managers"were"worried"about"the"effect"the"contracting"
Western"Australia"economy,"caused"in"part"by"the"slowing"resources"sector,"could"have"on"the"
composition"of"their"workforce"and"long[term"use"of"457"visa"workers.""
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1.!INTRODUCTION!"The"Temporary"Business"(Long"Stay)"–"Standard"Business"Sponsorship"(Subclass"457)"visa"(hereafter"
“457"visa”)"was"introduced"in"August"1996"by"the"Howard"Coalition"government"as"a"means"to"alleviate"
skills"shortages"in"specific"areas"of"the"economy."Initially"used"by"employers"in"the"Information"
Technology"(IT)"industries,"more"recently,"457"visas"have"been"used"by"resource"sector"firms."In"the"
Western"Australia"(WA)"resources"sector,"significant"investment"and"a"shortage"of"skills"in"the"local"
workforce"have"contributed"to"increased"employment"of"overseas"workers"on"457"visas"as"a"key"means"
for"firms"to"fill"temporary"workforce"skills"gaps.""
"The"resources"sector"has"been"an"important"contributor"to"the"development"of"the"WA"economy"since"
the"gold"rushes"of"the"1890s."By"2012,"over"50"different"mineral"resources"were"mined"in"523"
commercial"mineral"projects"operating"at"975"mine"sites"and"65"operating"oil"and"gas"fields"
(Department"of"Mines"and"Petroleum"[DMP],"2013a)."Collectively"these"projects"directly"employ"
edsome"105,583"people"(DMP,"2013a)"although"for"every"job"in"this"sector"there"existed"another"three"
indirect"jobs"in"retail,"hospitality,"support"services"and"manufacturing"(DMP,"2013).""
"
The"current"mining"boom"in"WA"began"around"2003"(DMP,"2013a)"and"significant"new"projects,"both"in"
mining"and"construction"related"to"mining"have"been"developed"or"planned."In"April"2013,"some"$177"
billion"worth"of"projects"were"under"construction,"with"a"further"$120"billion"planned"(DMP,"2013b)."
This"investment,"coupled"with"the"need"for"specialised"skills,"has"resulted"in"a"significant"increase"in"the"
number"of"workers"employed"on"457"visas."For"some"migrant"workers,"the"attractiveness"of"a"457"visa"
has"been"boosted"by"poor"economic"conditions"in"their"home"country"and"the"opportunity"to"work"on"
some"significant"resource"sector"projects.""
"457"visas"allow"employers"in"Australia"to"recruit"skilled"migrants"for"up"to"four"years."For"many,"it"is"a"
staging"post"for"obtaining"permanent"residence"(Hugo,"2013)."During"2013,"the"political"debate"
surrounding"immigration"and"the"employment"of"foreign"workers"triggered"major"changes"to"the"rules"
and"costs"associated"with"the"employment"of"skilled"migrants"on"457"visas."Further"changes"at"the"state"
and"federal"level"would"increase"costs"again"and"impact"on"employers’"decisions"to"recruit"migrant"
labour,"running"the"risk"that"projects"may"not"finish"on"time.""
"Smaller"firms"generally"experience"problems"finding"and"retaining"skilled"employees."Problems"arise"
from"a"lack"of"formalised"human"resource"management"(HRM)"practices,"including"inadequate"
screening"and"assessment"of"potential"candidates."Smaller"firms"are"often"constrained"by"resources,"
and"are"unable"to"undertake"extensive"searches"for"potential"workers"or"match"the"wages"and"
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conditions"offered"by"larger"firms."In"the"resources"sector,"these"constraints"may"make"smaller"firms"
unattractive"place"to"potential"employees,"particularly"those"seeking"job"security"and"financial"stability.""
"
In"order"to"address"these"issues,"this"research"was"undertaken"to"answer"the"following"questions:""
Why"and"how"do"smaller"firms"employ"workers"on"457"visas?""
What"drives"smaller"firms"to"recruit"and"select"temporary"migrant"workers"who"need"to"be"
sponsored"on"a"457"visa?""
What"are"smaller"firms’"experiences"of"457"visa"workers?""
What"are"457"visa"workers’"experiences"of"their"employment"in"smaller"firms?""
Data"were"acquired"from"both"employers"and"employees.""Semi[structured"interviews"with"the"key"
person"responsible"for"the"recruitment"of"457"visa"workers"in"10"smaller"firms"(referred"to"as"either"
manager"or"employer"throughout"the"report),"as"well"as"20"workers"employed"on"457"visas"in"12"
smaller"firms"were"undertaken."In"eight"firms"the"key"person"responsible"for"recruiting"457"visa"
workers"and"one"to"three"457"visa"workers"were"interviewed.""
"Few"studies"in"Australia"have"focused"on"457"visas,"and"when"they"do,"it"is"usually"of"larger,"rather"than"
smaller,"firms."In"Australia"the"Bureau"of"Statistics"defines"a"small"firm"as"one"that"employs"less"than"20"
people"(ABS,"2001),"which"overwhelmingly"captures"the"majority"of"private"business"operations"in"the"
country"(ABS,"2012)."However,"what"size"a"smaller"firm"is"depends"on"the"sector"in"which"it"operates"
(Barrett"&"Rainnie,"2002;"Curran,"1990;"Loveman"&"Sengenberger,"1990)."As"Curran"(1990,"p."129)"
argues:"
""Size"is"not"a"very"interesting"or"important"attribute"of"an"economic"unit"sociologically"when"set"
alongside"others"such"as"economic"sector,"technology,"locality,"labour"and"product"markets"etc,"
which"are"theoretically"more"significant."Of"course"size"plays"some"part"in"the"functioning"of"the"
organisation,"but"only"in"relation"to"other"factors.""
"Since"this"research"is"about"smaller"firms"in"the"resources"sector,"it"is"necessary"to"contextualise"firm"
size"in"this"sector."At"one"end"of"the"resources"sector"are"the"multinational,"multi[sectoral"businesses"
with"large"global"workforces"such"as"BHP"Billiton,"Rio"Tinto,"Shell,"and"Chevron;"while"at"the"other"end"
are"the"small"firms,"which"may"consist"of"an"individual"working"alone"or"in"partnership"with"another."In"
this"industry,"smaller"firms"are"“knowledge[based”"(Tonts"&"Taylor,"2009)"and"exist"within"an"
infrastructure"that"supports"larger"firms."This"is"evident"from"the"way"in"which"projects"are"
operationalised."For"example,"at"Rio"Tinto’s"Yandicoogina"site,"there"is"a"$120"billion"project"to"sustain"
the"life"of"the"mine"to"2021."Amongst"the"contract"winners"are"smaller"and"larger"firms,"each"
responsible"for"different"aspects"of"the"project."These"include"Calibre"Group"Limited’s"contract"worth"
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some"$150"million"and"SCEE"infrastructure’s"contract"worth"some"$40"million."Gumala"Enterprises"Pty"
Ltd"and"Remote"Water"Services"each"have"a"portion"of"the"contract"at"an"unspecified"value;"around"$29"
million"has"been"won"by"Southern"Cross"Electrical;"and"NRW"Holdings"won"part"of"the"project"worth"
some"$91"million."These"firms"are"likely"to"subcontract"others,"so"pinpointing"exact"firm"sizes"is"made"
difficult"by"the"subcontracting"relationships"in"this"sector."Moreover"there"is"no"data"available"on"the"
exact"number"of"firms"or"size"of"firms"operating"in"WA’s"resources"sector."For"this"study"smaller"firms"
were"targeted"and"the"firms"that"participated"employed"between"20"and"400"employees,"with"the"
majority"employing"200"people"or"less"(see"Table"3).""
"In"the"next"section,"the"issues"identified"in"the"literature"around"recruitment"and"selection"in"smaller"
firms"are"outlined"in"the"context"of"the"role"of"HRM"in"smaller"firms."The"characteristics"and"processes"
associated"with"457"visas"are"then"described"to"provide"a"background"for"investigating"why"and"how"
these"are"used"by"smaller"firms."Thereafter"the"methods"used"to"build"the"sample,"collect"and"analyse"
the"data,"are"described."Information"about"the"employer"and"employee"respondents"is"also"presented,"
and"the"findings"are"discussed"in"light"of"the"earlier"literature,"followed"by"conclusions."In"the"final"
section,"avenues"for"future"research"are"proposed.""
2.!LITERATURE!
2.1!Smaller!Firms,!Human!Resource!Management!and!Recruitment!"Smaller"firms"frequently"complain"about"difficulties"finding"the"“right”"staff."Recruitment"and"selection"
practices"are"the"means"by"which"new"employees"are"brought"into"the"firm."From"a"strategic"
perspective,"appropriate"employee"performance"can"be"achieved,"by"aligning"HRM"practices"including"
recruitment"and"selection"with"the"overall"business"strategy"(see"for"example"Delery"&"Doty,"1996;"
Lengnick[Hall"&"Lengnick[Hall,"1988;"Wright,"Dunford"&"Snell,"2001;"Wright"&"Snell,"1998)."The"
resource[based"view"of"the"firm"(Barney,"1991)"suggests"that"sustained"competitive"advantage"can"be"
derived"from"the"way"HRM"practices"are"developed"and"integrated"to"achieve"strategic"objectives."This"
means"that"internally"developed,"firm[specific,"progressive"HRM"systems"can"be"valuable,"rare"
(especially"in"circumstances"where"there"are"skills"shortages)"and"difficult"to"imitate"by"other"firms,"
particularly"when"distinct"and"unique"“bundles”"of"inter[linked"HRM"practices"are"aligned"with"
business"strategy"(Boxall,"1996;"Delaney"&"Huselid,"1996;"Dyer"&"Reeves,"1995;"Huselid,"Jackson"&"
Schuler,"1997;"Lado"&"Wilson,"1994;"Mayson"&"Barrett,"2006;"Wright"et"al.,"2001).""
"In"smaller"firms"every"person"counts"and"their"performance"can"have"a"significant"impact"on"firm"
performance"(Gatewood"&"Feild,"1987)."Effective"HRM"practices"can"contribute"to"firm"survival,"while"
the"means"to"acquire,"allocate"and"develop"human"resources"can"impact"on"the"speed"and"direction"of"
firm"growth"(Barrett"&"Mayson,"2008;"Barrett,"Mayson,"&"Warriner,"2008;"Baron,"2003;"Changanti,"
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Cook"&"Smeltz,"2002;"Heneman,"Tansky"&"Camp,"2000;"Katz,"Aldrich,"Welbourne"&"Williams,"2000;"
Mayson"&"Barrett,"2005;"Williamson,"2000)."In"growth[oriented"firms,"effective"HRM"practices"are"vital"
for"coping"with"the"increased"complexity"resulting"from"greater"numbers"of"employees,"in"order"to"
sustain"growth"(Arthur,"1995;"Barrett"&"Mayson,"2008)."
"In"terms"of"recruitment"and"selection,"smaller"firms"have"not"noted"for"effective"practices,"and"have"
been"criticised"for"inadequacies"when"compared"with"larger"firms"(Barber,"Wesson,"Roberson"&"Taylor,"
1999;"Cardon"&"Tarique,"2008;"Carroll,"Marchington,"Earnshaw,"&"Taylor,"1999;"De"Kok"&"Uhlaner"
2001;"Hornsby"&"Kuratako,"2003;"Taylor,"2006)."Recruitment"practices"in"smaller"firms"have"been"
found"to"be"“unimaginative”"–"this"is"supported"by"McEvoy’s"(1984)"study"which"shows"newspaper"
advertisements"and"walk[ins"as"commonly"used"recruitment"methods,"and"selection"processes"confined"
to"completing"application"forms"and"face[to[face"interviews."Heneman"and"Berkley"(1999)"found"
convenience"and"cost"were"major"factors"in"smaller"firms’"attraction"practices,"with"employers"choosing"
to"have"direct"control"over"the"processes."Other"studies"of"smaller"firms"found"a"reliance"on"word[of[
mouth"and"other"informal"recruitment"processes"(Barrett"&"Mayson,"2007;"2008;"Carroll"et"al.,"1999;"
Cassell,"Nadin,"Gray"&"Clegg,"2002;"Kotey"&"Slade,"2005;"Marchington,"Carroll"&"Boxall,"2003;"Mayson"&"
Barrett,"2005).""
"
While"effective"HRM"practices"seek"to"ensure"“the"right"person"is"in"the"right"job"at"the"right"time”,"there"
is"a"strong"desire"for"“fit”"in"smaller"firms"(Barrett,"Neeson"&"Billington,"2007)."Informal,"convenient"or"
low[cost"recruitment"and"selection"processes,"such"as"walk[ins,"job"try[outs"or"referrals"may"be"
preferred,"because"they"can"be"an"effective"means"of"testing"whether"potential"employees"will"“fit"in”"
(Marlow"&"Patton,"1993)."However,"this"could"also"result"in"employing"the"“wrong”"or"“not"quite"right”"
person"as"a"larger"pool"of"potentially"suitable"recruits"remains"untapped"(Carroll"et"al.,"1999)."
Accusations"of"indirect"discrimination"in"selection"processes"may"also"occur"when"the"candidate"who"is"
most"like"the"employer"or"interviewer"is"selected,"rather"than"the"best"person"for"the"job."Moreover,"
when"selection"is"based"on"informal"methods"such"as"“instinct”"or"“gut"feel”"or"“hoping"their"judgment"
is"right”"(Leung,"2003,"p."315),"the"potential"for"HRM"to"support"growth"may"be"compromised."Further,"
as"smaller"firms"grow,"they"can"eventually"exhaust"their"networks"of"family"members,"referrals"and"
walk[ins,"and"need"to"develop"more"formal"methods"for"recruiting"employees"to"sustain"growth"
(Mayson"&"Barrett,"2005;"2007;"Williamson,"2000)."
"Taylor"(2006,"p."487)"argues"that"“recruitment"and"selection"are"activities"that"enable"small"firm"
owners"to"express"their"temperaments"and"ambitions"in"ways"that"may"not"fit"with"a"rational"or"
managerial"approach"to"HRM”."The"lack"of"formalised"HRM"practices"in"small"firms"may"be"explained"in"
a"number"of"ways"other"than"that"proposed"by"Taylor"(2006)."They"can"suffer"from"“resource"poverty”"
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(Welsh"&"White,"1981,"p."18)"or"a"“liability"of"smallness”"(Heneman"&"Berkley,"1999,"p."53),"and"these"
raise"unique"issues"in"terms"of"organisational"attractiveness"(Cardon"&"Tarique,"2008),"or"perceived"
legitimacy"of"smaller"firms"as"employers"(Williamson,"2000;"Williamson,"Cable"&"Aldrich,"2002;"
Williamson"&"Robinson,"2008)."In"other"words,"recruitment"may"be"problematic"because"smaller"firms"
are"“below"the"radar”"of"potential"employees"(Williamson"et"al.,"2002)."Potential"employees"may"
perceive"smaller"firms"to"be"unattractive"and"unable"to"match"the"pay"rates"and"work[related"benefits"
offered"by"larger"firms."Furthermore,"their"size"may"be"perceived"as"a"threat"to"their"viability"and"this"
may"make"them"unattractive"to"potential"employees"(Barber"et"al.,"1999;"Ranger[Moore,"1997).""
"Resource"poverty"can"also"mean"that"formalised"HRM"practices"are"relatively"more"costly"and"time[
consuming"to"implement"in"smaller"firms"(McEvoy"1984;"Reid,"Morrow,"Kelly"&"McCarton,"2002)."In"
smaller"firms,"managerial"resources"and"expertise"are"unlikely"to"exist"in"the"area"of"HRM"(Barrett"&"
Mayson,"2008;"Chandler"&"McEvoy"2000;"Hornsby"&"Kuratko"1990;"2003;"Klaas,"McClendon"&"Gainey"
2000;"McLarty"1999)"and"this"may"be"why"convenient"recruitment"and"selection"processes"are"used."
Smaller"firms"may"need"to"exert"more"effort"to"“sell”"themselves"as"effective"employers"in"order"to"
attract"a"pool"of"potential"employees;"however"they"may"not"have"the"resources"to"do"so."Research"
shows"the"recruitment"methods"used"by"smaller"firms"can"impact"on"employees’"perceptions,"notably"
their"loyalty,"and"it"is"therefore"important"that"they"make"an"effort"to"promote"themselves"(Reda"&"
Dyer,"2010).""
"In"the"next"section,"the"requirements"of"457"visas"are"examined"to"understand"the"issues"employers"
have"to"deal"with"to"pursue"this"option"for"filling"skills"gaps"in"their"workforce.""
2.2!The!457!Visa!"
The"457"visa"was"introduced"into"Australian"policy"in"1996"for"the"temporary"employment"of"skilled"
migrants"(Oke,"2010)."It"allows"employers,"who"cannot"source"specialist"skills"from"the"domestic"labour"
market,"to"employ"overseas"workers"for"nominated"skilled"positions"(DIAC,"2013)."Temporary"skilled"
migrants"can"be"employed"on"457"visas"for"up"to"four"years,"with"an"option"to"apply"for"permanent"
residence"after"two"years.""
"Eligibility"for"this"visa"is"restricted"to"the"Consolidated"Sponsored"Occupations"List"(CSOL)"which"is"
controlled"by"the"federal"government"and"stipulates"the"occupations"in"demand."An"employer"or"
business"is"only"able"to"sponsor"a"skilled"overseas"worker"if"they"are"in"one"of"the"725"or"so"occupations"
on"the"CSOL."A"business"wanting"to"employ"someone"in"an"occupation"not"on"this"list"must"do"so"under"
a"labour"agreement,"which"is"negotiated"and"signed"by"the"employer/business"and"the"federal"
government"represented"by"DIAC."These"agreements"are"not"the"focus"of"this"study.""
!
14""
"As"at"31"May"2013,"only"106,680"of"Australia’s"total"workforce"of"more"than"11"million"workers"were"
primary"457"visa"workers,"making"up"less"than"1%"of"the"Australian"workforce"(a"primary"visa"holder"
is"the"worker,"while"a"secondary"visa"holder"is"their"dependents)."Other"visa"categories"permit"
employment"(for"example"the"student"visa,"the"short"term"working"holiday"visa,"or"the"Pacific"Seasonal"
Worker"visa),"but"these"are"also"not"the"focus"of"this"study."Contrary"to"the"perception"that"only"the"
private"sector"employs"457"visa"workers,"they"can"be"found"in"all"sectors"of"the"economy,"including"the"
public"sector."This"is"because"the"requirements"for"citizenship"or"permanent"residence"can"be"waived"
by"an"agency"head"if"they"are"satisfied"that"the"“needs"and"circumstances"of"the"agency”"demand"it"
(Australian"Public"Service"Commission,"2013)."As"at"31"May"2013,"the"percentage"of"primary"457"visa"
applications"granted"in"2012[13"in"the"government"sector"amounted"to"6.3%.""
"The"106,680"primary"457"visa"holders"in"Australia"as"at"31"May"2013"represent"an"increase"of"18.2%"
over"the"previous"year."The"number"of"457"visas"granted"in"2012[13"was"62,810,"similar"to"the"number"
granted"in"the"previous"year"(up"to"31"May)."The"top"three"countries"for"457"visa"grants"to"31"May"2013"
were"India"(20.5%),"the"United"Kingdom"(19.7%),"and"the"Republic"of"Ireland"(9.7%)"(DIAC,"
State/Territory"Summary"Report,!2013)."Table"1"shows"statistics"on"the"occupational"groups"and"
industries"where"457"visas"were"granted"in"the"years"2011[12"and"2012[13.""
!
Table!1!!457!visas!granted!2011Y20112!and!2012Y!(31!May)!2013!!
Top 3 Occupational Groups Top 3 Industries
2011-12 2012-13 2011-12 2012-13
Professionals 55.4%
Professionals 49.1%
Construction 13.4%
Other Services 12.1%
Technicians & Trades Workers 23.7%
Technicians & Trades Workers 26.5%
Health Care & Social Assistance 11.7%
Construction 11.6%
Managers 14.2%
Managers 17%
Other Services 11.6%
Health Care & Social Assistance 11.1%
Source: DIAC, 2013 Subclass 457 State/Territory Summary Report 2012-13 to 31 May 2013. "Table"2"shows"the"top"three"locations"of"457"visa"workers"and"the"number"of"primary"457"visa"workers"
in"2011[12"and"2012[13.""
!"
!
15""
!!Table!2!!!Top!three!locations!of!457!visa!holders!by!nominated!position!!
2011-12 (to 31/05/12) 2012-13 (to 31/05/13)
Location Number Location Number
New South Wales 20,640 New South Wales 22,000
WA 14,920 WA 13,540
Victoria 12,570 Victoria 13,190 Source: DIAC, 2013 Subclass 457 State/Territory Summary Report 2012-13 to 31 May 2013.
"The"457"visa"scheme"has"undergone"considerable"changes"since"its"introduction"under"the"Migration!
Regulations!(Amendment)!Act!1996!(Cth)"in"August"1996."Significant"modifications"to"the"scheme"seek"
to"ensure"suitably"skilled"Australian"workers"are"employed"before"employers"look"to"migrant"workers"
to"fill"skilled"positions"(Hugo,"2013)."The"justification"for"changing"the"rules,"including"the"changes"
made"in"2013,"was"explained"by"the"then"Immigration"Minister,"Brendan"O’Connor,"who"said:"“it"has"
become"clear..."that"the"growth"in"the"457"program"is"out"of"step"with"those"skills"shortages,"and"the"
government"has"evidence"that"some"employers"..."are"using"457"visas"to"discriminate"against"locals"[and"
that]"cannot"continue”"(O’Connor,"2013)."
"The"changes"introduced"on"1"July"2013"(DIAC,"2013)"aim"to"improve"the"integrity"of"the"program"(DIAC,"
Changes"to"the"Subclass"457"program,"2013)."These"changes"placed"increased"obligations"on"employers,"
including"providing"ongoing"training;"demonstrating"a"genuine"skill"need;"specifying"the"number"of"457"
workers"to"be"sponsored;"aligning"market"pay"rates"to"regional"locality;"increasing"the"market"rate"
exemption"to"$250,000;"payment"of"costs"upon"becoming"a"sponsor;"restricted"12[month"sponsorships"
for"start[up"businesses;"and"mandatory"electronic"submission"with"processing"in"Australia"and"not"the"
nearest"Australian"post"(DIAC,"Changes"to"the"Subclass"457"program,"2013).""
"An"obligation"placed"on"employers"was"the"requirement"to"conduct"Labour"Market"Testing"(LMT)"prior"
to"recruiting"workers"on"457"visas."Labour"market"testing"is"the"process"of"advertising"a"position"in"
Australia"to"fill"a"vacancy"with"an"appropriately"skilled"Australian"citizen"or"permanent"resident"(DIAC,"
Employer"Sponsored"Workers,"2013)."Previous"DIAC"guidelines"for"LMT"required"that"employers"
provide"documentary"evidence"of"having"checked"the"labour"market"in"the"six"months"immediately"
prior"to"lodgment"of"the"sponsorship"application."The"required"evidence"included"the"original"job"
advertisements"and"details"of"all"local"applicants,"including"their"Australian"citizenship"or"permanent"
!
16""
residence"status"and"the"reason/s"why"they"were"not"suitable"(DIAC,"Employer"Sponsored"Workers,"
2013).""
"Increased"expectations"were"also"placed"on"457"visa"holders."These"include"undergoing"skills"
assessment"for"generalist"project"manager"and"specialist"manager"occupations;"demonstrating"direct"
employment"by"an"employer"(and"not"a"labour"hire"company);"demonstrating"English"language"
proficiency;"12[month"visa"restrictions"on"sponsorships"by"start[up"companies;"and"commencing"
employment"with"a"sponsor"within"90"days"of"arrival"in"Australia"(DIAC,"Changes"to"the"Subclass"457"
program,"2013)."!
"Currently,"employers"who"wish"to"sponsor"a"457"visa"worker"must"demonstrate"that"they"can"provide"
training"where"needed"(and"have"the"required"training"budget)."They"must"supply"evidence"of"having"
spent"at"least"1%"(equivalent)"of"their"payroll"on"training"employees"who"are"Australian"citizens"or"
permanent"residents,"or"have"allocated"at"least"2%"(equivalent)"of"their"payroll"to"an"industry"(same"as"
the"one"they"operate"in)"training"fund."This"ensures"457"visa"workers"are"not"used"as"an"alternative"to"
training"Australian"workers."For"smaller"firms,"where"training"is"more"likely"to"be"informal"(Cardon"&"
Stevens,"2004;"Cassell"et"al.,"2002;"Kotey"&"Slade,"2005;"Reid"et"al.,"2002),"this"requirement"may"restrict"
their"use"of"temporary"skilled"migrants"to"fill"skills"gaps.""
"
Employers"are"required"to"pay"their"457"visa"workers"at"market"rates."The"rate"depends"on"whether"the"
employer"has"an"Australian"citizen"or"permanent"resident"performing"equivalent"work"in"the"
workplace"–"in"such"cases"the"457"visa"worker"must"be"paid"at"the"same"rate."Where"there"are"no"
Australian"citizens"or"permanent"residents"performing"equivalent"work,"the"457"visa"worker"must"be"
paid"at"the"rate"specified"in"the"relevant"industrial"award"or"enterprise"agreement;"and"where"there"is"
no"such"agreement"or"relevant"award,"the"457"visa"worker"must"be"paid"at"the"going"market"rate."The"
latter"is"determined"by"earnings"data"published"by"the"ABS"and"what"employees,"who"perform"
equivalent"work,"are"paid"in"similar"workplaces"in"that"location."Irrespective"of"whether"an"Australian"
citizen"or"permanent"resident"is"employed"or"not,"the"market"rate"for"the"457"visa"worker"must"be"
greater"than"the"Temporary"Skilled"Migration"Income"Threshold"(TSMIT)"which"is"currently"set"by"
government"at"$53,900."The"TSMIT"is"indexed"annually"but"employers"are"not"permitted"to"employ"an"
overseas"worker"in"an"occupation"on"the"CSOL"where"the"award"or"market"rate"is"below"the"TSMIT"
threshold,"even"if"they"are"willing"to"pay"above"the"TSMIT"threshold."This"means"an"employer"cannot"
inflate"pay"to"meet"or"exceed"the"TSMIT"threshold"simply"to"use"a"worker"on"a"457"visa.""
"Before"embarking"on"the"457"visa"process,"employers"are"required"to"demonstrate"that"the"overseas"
worker’s"role"(which"requires"specialised"skills"and/or"qualifications)"is"a"necessary"part"of"business"
operations."There"is"however,"no"guarantee"that"a"457"visa"worker"will"remain"with"their"employer"for"
!
17""
the"duration"of"their"four[year"contract,"since"they"are"free"to"pursue"opportunities"with"other"
employers"willing"to"take"on"their"visa"sponsorship.""
"
As"at"1"July"2013,"457"visa"holders"had"the"time"to"find"a"new"sponsor"or"depart"Australia"if"they"ceased"
employment"with"their"sponsor"increased"from"28"days"to"90"days"(DIAC,"Changes"to"the"Subclass"457"
program,"2013)."The"new"employer"must"demonstrate"all"the"necessary"457"visa"sponsorship"and"
nomination"requirements"before"they"employ"the"457"employee."However,"the"costs"borne"by"the"initial"
employer"to"initiate"the"visa"are"not"transferred"to"the"new"employer"(visa"sponsor)."Some"costs"must"
be"met"by"the"new"employer"(such"as"costs"to"allow"the"sponsored"person"and"their"family"members"to"
leave"Australia,"and"costs"incurred"by"the"Immigration"Department"to"remove"the"sponsored"person"
and"their"family"members"if"they"become"unlawful"non[citizens)."Other"expenses"are"covered"at"the"
employers’"discretion"and"forms"part"of"the"overall"HRM"practices"used"to"manage"staff."Increasing"
costs,"including"the"requirement"to"pay"for"relocation"and"repatriation"of"overseas"workers"and"their"
families,"as"well"as"fees"incurred"by"employers"throughout"the"457"process,"can"be"problematic"for"
resource[poor"employers.""
"The"processes"involved"in"sponsoring"migrant"workers"on"457"visas"are"highly"formalised."Once"the"
employee"has"been"selected"and"the"visa"requirements"have"been"met,"the"visa"itself"takes"time"to"be"
issued."Employers"have"some"discretion"over"covering"the"cost"of"the"new"employee’s"relocation"and"
repatriation,"as"well"as"other"costs"related"to"the"employee’s"ongoing"socialisation,"training"and"
performance"management."Generally"however,"it"can"be"argued"that"employing"a"skilled"worker"on"a"
457"visa"requires"more"formalised"HRM"practices"than"would"normally"be"expected"of"a"smaller"firm.""
2.3!Research!on!Employers’!Use!of!457!Visas!"Few"studies"have"been"conducted"on"the"reasons"why"employers"make"use"of"workers"on"457"visas."The"
Australian"Research"Council,"in"partnership"with"DIMMIA"(now"DIAC),"funded"a"study"undertaken"by"
Khoo,"McDonald"and"Hugo."They"examined"the"employment"circumstances"of"457"visa"holders"as"well"
as"employers’"reasons"for"using"457"visas"(Khoo,"McDonald"&"Hugo,"2005;"Khoo,"Voigt[Graf,"McDonald"
&"Hugo,"2004;"2007a;"2007b)."To"this"end,"135"employers"who"had"sponsored"457"visa"workers"were"
surveyed"in"2003."The"respondents"operated"a"diversity"of"businesses,"mainly"in"cities"on"Australia’s"
eastern"seaboard."IT"and"communication"firms"made"up"the"largest"group,"followed"by"accommodation"
and"hospitality"firms,"a"clear"indication"of"where"457"visa"workers"were"being"employed.!The"majority"
of"workers"came"from"English[speaking"countries"such"as"Canada,"India,"South"Africa,"UK"and"US."
Nearly"half"of"all"employers"surveyed"sponsored"workers"from"the"UK."Four"reasons"emerged"for"why"
employers"sponsored"457"workers:"(a)"specialised"skills"were"not"available"locally;"(b)"shortage"of"local"
!
18""
graduates"in"some"occupations;"(c)"needing"people"at"short"notice;"and"(d)"intra[company"transfer"of"
staff"(Khoo"et"al.,"2007a,"p."188).""
"In"another"paper"by"Khoo"et"al."(2007b),"factor"analysis"was"conducted"on"the"reasons"motivating"
employers"to"employ"457"visa"workers,"and"showed"the"primary"factor,"“perceived"advantages"of"hiring"
migrants”,"accounted"for"54%"of"the"variance,"as"opposed"to"the"second"factor,"“skills"shortages”,"which"
accounted"for"22%"of"the"variance."“Perceived"advantages"of"hiring"migrants”"was"made"up"of:"(1)"visa"
conditions"provide"a"high"degree"of"control;"(2)"foreign"workers"are"more"committed"to"the"job;"(3)"
sponsored"employee"had"lower"costs;"and"(4)"sponsorship"suits"company"policy."An"analysis"of"
differences"between"smaller"and"larger"firms"found"that"smaller"firms"were"“most"likely"to"cite"the"
advantages"of"foreign"workers"in"their"decision"to"sponsor”"(Khoo"et"al.,"2007b,"p."498)."
"Aside"from"intra[company"transfers,"networks"played"an"important"role"in"recruiting"workers."In"
smaller"firms,"and"particularly"those"with"ethnic"owners,"“personal,"ethnic"and"transnational"business"
networks”"(Khoo"et"al.,"2007a,"p."191)"were"used"to"identify"potential"employees"for"sponsorship."
Employers"were"more"likely"to"use"other"employees"and"advertising,"and"least"likely"to"use"migration"
agents,"as"a"means"of"recruiting"migrant"workers,"regardless"of"whether"they"were"based"overseas"or"in"
Australia."This"is"an"indication"of"the"value"and"importance"of"networks"in"recruitment.""
"From"a"HR"Pulse"Survey"of"Australian"Human"Resource"Institute"(AHRI)"members"in"December"2008,"
Cameron"and"Harrison"(2013)"analysed"why"employers"used"457"visas."The"1045"respondents"included"
those"who"had"employed"skilled"migrants"and"those"who"worked"in"an"organisation"that"employed"
skilled"migrants."The"main"reasons"for"employing"skilled"migrants"were"found"to"be:"(a)"a"shortage"of"
workers"with"particular"skills"in"Australia;"(b)"to"attract"international"skills"and"knowledge;"and"(c)"
difficulties"getting"Australian"citizens"or"permanent"residents"to"work"in"the"region."An"analysis"of"
organisational"size"and"type"did"not"find"any"significant"differences"between"the"reasons"to"use"migrant"
workers."On"the"other"hand,"an"analysis"of"organisations"that"had"and"had"not"employed"skilled"
migrants,"revealed"differences"in"firm"size:"larger"firms"constituted"a"greater"proportion"of"the"group"
that"had"used"skilled"migrants,"and"smaller"firms,"a"greater"proportion"of"the"group"that"had"not.""
"Recruitment"of"skilled"migrants"was:"(1)"through"a"recruitment"agency;"(2)"approached"by"workers"
directly;"and"(3)"by"advertising"overseas"(Cameron"&"Harrison,"2013)."Again"there"were"few"differences"
in"methods"between"industries"and"firm"sizes."Similarities"emerged"between"the"findings"from"this"
study"and"Khoo"et"al."(2005),"particularly"the"direct"approach"of"the"worker."Khoo"et"al."(2005,"p."15)"
found"the"most"common"method"used"by"457"visa"workers"to"seek"employment"was"through"a"direct"
approach"to"the"employer."Those"already"onshore"but"employed"elsewhere"on"a"457"visa"could"make"
!
19""
contact"with"prospective"employers"in"a"variety"of"ways,"while"offshore"workers"readily"used"
information"and"communications"technologies"to"access"prospective"employers.""
"In"a"2012"study"of"WA"resource"sector"firms,"Bahn"(2013)"found"457"visa"workers"were"employed"as""
a"temporary"measure"to"address"genuine"skills"shortages."Her"findings"also"suggested"that"Australian"
workers"were"regarded"unfavourably"by"employers"when"compared"with"457"visa"workers"who"were"
willing"to"work"longer"hours"in"poorer"conditions."This"appears"to"support"the"Khoo"et"al."study"which"
made"reference"to"employers’"positive"perceptions"of"457"visa"workers."In"another"analysis,"Bahn"
(forthcoming)"noted"that"the"employment"of"temporary"migrant"workers"on"457"visas"had"placed"
additional"responsibilities"on"Human"Resource"managers."In"particular,"they"needed"more"time"and"
money"to"assimilate"workers"who"came"from"countries"where"English"was"not"their"first"language"(e.g."
the"Philippines).""
"Some"complimentary"findings"emerged"from"the"few"existing"studies"on"the"subject,"particularly"in"
relation"to"the"positive"perception"employers"had"of"457"visa"workers."The"extent"to"which"this"
perception"exists"amongst"resource"sector"employers"lends"itself"to"further"examination."In"the"next"
section,"matters"related"to"employment"in"the"WA"resources"sector"are"briefly"explored."
2.4!Resources!Sector!Employment!""Across"the"WA"resources"sector,"firms"are"under"pressure"to"increase"production"and"projects"need"a"
supply"of"skilled"workers"for"timely"delivery"and"completion."Australia"has"experienced"a"persistent"
shortage"of"trade"skills"over"time"(National"Centre"for"Vocational"Education"Research,"2008),"following"
disinvestment"in"training"by"employers"which"started"the"1990s"(Watson,"Buchanan,"Campbell"&"
Briggs,"2003)."The"latest"report"of"the"Australian"Workforce"and"Productivity"Agency"(AWPA)"(2012)"
points"to"ongoing"issues"related"to"the"supply"of"skilled"workers"in"the"resources"sector,"particularly"for"
key"trades"such"as"fabrication"steel"tradespersons"and"welders."These"pressures"have"been"
compounded"by"baby"boomers"starting"to"exit"the"labour"market"(Salt,"2012)"and"low"rates"of"entry"by"
Generation"Y"workers"(Jockel,"2009)."Skills"shortages"need"to"be"addressed"if"firm"decline"is"to"be"
avoided"(Healy,"Mavromaras"&"Sloane,"2012)."
"
In"WA,"resources"sector"employment"is"located"mainly"in"regional"and"remote"areas"["some"of"it"is"fly[
in[fly[out"or"drive[in[drive[out."The"AWPA"(2012)"argues"that"fly[in[fly[out"and"drive[in[drive[out"work"
arrangements"mean"firms"could"access"labour"from"industries"and"regions"in"decline."However,"the"
location"of"the"work"is"an"important"consideration"for"workers,"as"are"the"conditions"of"employment"
(such"as"being"away"from"home"and"family"for"lengthy"periods)"and"this"employment"is"not"attractive"to"
many"potential"employees."Many"of"these"issues"are"addressed"in"the"House"of"Representatives"
!
20""
Standing"Committee"on"Regional"Australia"report"on"fly[in[fly[out"workforce"practices"in"regional"
Australia"(HRSCRA,"13"Feb,"2013).""
"
Terms"and"conditions"of"employment"for"resource"sector"employees"are"generally"perceived"to"be"
advantageous"(AWPA,"2012),"hence"a"steady"flow"of"workers"to"WA"seeking"employment"in"the"sector."
With"a"long"history"of"unionisation"(Ellem,"2006),"there"have"been"heated"negotiations"over"terms"and"
conditions"of"employment"and"instruments"to"regulate"the"employment"relationship."Certain"conditions"
for"workers"on"fly[in[fly[out"contracts"have"become"a"source"of"dispute"between"unions"and"employers,"
for"example"“motelling”"or"“hot[bedding”"arrangements."Worker"retention"is"problematic"and"firms"
have"engaged"in"a"range"of"practices"to"decrease"employee"turnover"and"increase"productivity,"notably"
by"increasing"pay"(AWPA,"2012)."The"shortage"of"workers"and"skills"has"seen"a"“war"for"talent”"within"
the"sector,"and"this"has"impacted"on"employees’"expectations"of"work"and"how"much"they"expect"to"be"
paid.""
2.5!Summary!"In"view"of"the"above"issues"it"is"timely"to"investigate"the"use"of"457"visas"by"smaller"firms"in"the"
resources"sector."Recruitment"and"selection"practices"are"key"to"ensuring"the"right"people"with"the"right"
skills"are"available"at"the"right"time,"so"that"overall"business"objectives"can"be"met."However,"smaller"
firms"are"more"likely"to"use"informal"recruitment"and"selection"practices,"which"is"inconsistent"with"
requirements"for"sponsoring"temporary"skilled"migrant"workers"on"457"visas."The"457"visa"is"
controlled"by"the"government,"has"strict"conditions"of"use,"and"requires"formalised"HRM"practices"for"
recruitment,"training"and"performance"management."In"recent"times,"these"visas"have"been"subject"to"
considerable"change"as"a"result"of"being"caught"up"in"the"larger"political"debate"about"immigration."
With"the"election"of"a"new"federal"government,"the"conditions"for"their"use"are"likely"to"change"again.""
"Despite"the"stringent"processes"and"costs"involved,"smaller"firms"do"sponsor"workers"on"457"visas."
Taylor"(2006,"p."484)"argued"that"to"understand"recruitment"and"selection"processes"in"smaller"firms"
we"need"to"see"them"“as"a"series"of"agents’"actions,"accomplished"within"a"series"of"conditioning"
structures."This"acknowledges"the"freedom"of"individuals"to"act,"and"the"constraints"within"which"they"
act”."Some"of"the"key"conditioning"structures"have"already"been"outlined"above:"the"nature"of"
employment"within"the"WA"resources"sector;"requirements"and"processes"for"using"457"visas;"and"
difficulties"of"smaller"firms"to"attract"skilled"employees."It"is"necessary"to"understand"the"action"of"
agents"within"these"structures."Why"do"smaller"firms"in"the"WA"resources"sector"use"457"visa"workers?"
This"and"other"questions"about"how"employers"attract"these"workers"and"what"their"experiences"have"
been,"need"to"be"answered."We"also"need"to"examine"what"attracts"457"visa"workers"to"particular"firms"
!
21""
and"their"experiences"of"employment"through"this"mechanism."In"the"next"section"of"this"report,"the"
methods"used"to"source,"collect"and"analyse"the"data"are"outlined."This"is"followed"by"the"findings.""
3.!METHODS!"Semi[structured"interviews"(Fontana"&"Frey,"2008)"were"conducted"with"the"key"persons"responsible"
for"recruiting"457"visa"workers"(referred"to"as"manager"or"employer"throughout"the"report)"in"10"
smaller"firms"in"the"WA"resources"sector."In"addition,"interviews"were"conducted"with"20"workers"
employed"on"457"visas"in"12"smaller"firms"(including"8"of"the"smaller"firms"where"the"key"person"
responsible"for"recruiting"457"visa"workers"was"also"interviewed)"(see"Table"3).""
"
The"sample"may"appear"small,"but"it"took"time"to"recruit"10"managers"and"20"workers"across"14"
smaller"resource"sector"firms."The"initial"firms"were"recruited"through"the"researchers’"networks,"while"
a"process"of"snowball"sampling"was"subsequently"applied."The"interviews"were"either"conducted"at"a"
site"visit"or"by"telephone,"and"were"aimed"at"gathering"an"account"of"the"issues"faced"in"attracting"
potential"employees,"and"why"and"how"employers"employed"temporary"migrant"workers"on"457"visas."
The"experiences"of"both"managers"and"workers"on"457"visas"were"sought."All"participants"were"
generous"with"their"time"and"interviews"ranged"from"30"minutes"to"nearly"two"hours."The"project"was"
explained"to"each"of"the"participants"and"their"consent"sought"to"participate"and"have"the"interview"
taped."Participants"were"free"to"withdraw"at"any"point"without"penalty."All"interviews"were"transcribed"
verbatim"and"checked"by"each"interviewee."Transcriptions"were"entered"into"NVivo"for"thematic"
analysis."Interviews"were"coded"as"Manager"1[10"and"Worker"1[20"as"shown"in"Table"3."All"quotes"are"
reported"using"codes"such"as"“Manager"1,"Trade”"and"“Worker"12,"Mechanical"Fitter/UK.”""
"
"""""""""""""""""""
!
22""
Table"3!"Participants!!
Firm
Exp
ertis
e/
Loc
atio
n!
Firm
size
Man
ager
no.
Wor
ker n
o.
Role
/Nat
iona
lity
Wor
ker n
o.
Role
/Nat
iona
lity
Wor
ker n
o.
Role
/Nat
iona
lity
Trade/ Industrial centre south of Perth
40 1 8 Boilermaker/ Philippines
-
Trade/ Regional WA town 150 2 - - - Engineering/ Industrial centre south of Perth
75 3 10 Pipe Fitter/ Philippines 11
Pipe Fitter/ Philippines -
Engineering/ Industrial centre south of Perth
200 4 13 Machine Operator/ Philippines
14 Machine Operator/ Philippines
-
Engineering/ Regional town 300 5 9 Boilermaker/
Ireland 12 Mechanical
Fitter/UK -
Engineering/ Eastern suburb 200 6 6
Maintenance Officer/ India
5 Engineer/ Philippines 7
Boilermaker/UK
Project Management/ Perth CBD
20 7 18 Specialist Consultant/ UK
19 Specialist Consultant/ India
-
Project Management/ Perth CBD
20 8 17 Project Manager/ US
- -
Oil Exploration/ Perth CBD 200 9 - - - Trade/ Industrial centre south of Perth
30 10 15 Machine Operator/ Philippines
16 Machine Operator/ UK
-
Trade/Eastern suburb 30 - 4 Engineer/
Ireland - -
Mineral Exploration/Perth CBD
20 - 20 Geologist/ India - -
Trade/Northern suburb 60 - 2
Engineer/ Spain
3 Engineer/ Brazil -
Trade/Northern suburb 400 - 1
Engineer/ Spain
- -
"The"data"analysis"was"a"“fluid”"process"of"making"sense"of"the"information"(Tesch,"1990)"and"the"
approach"involved"searching"for"and"categorising"common"themes"and"relationships"between"the"
!
23""
themes."Each"transcription"was"read"and"reviewed"a"number"of"times"for"analysis."The"initial"reading"
revealed"the"key"themes,"while"the"subsequent"readings"enabled"a"template"approach"(Miles"&"
Huberman,"2002)"to"be"used,"where"the"interview"text"was"analysed"using"a"guide"constructed"from"the"
identified"themes."Despite"the"differences"between"firms,"workers,"scope"and"nature"of"the"work"in"each"
firm,"similar"issues"emerged."Essentially"the"thematic"analysis"of"the"interview"data"focused"on"
developing"a"more"nuanced"understanding"of"the"factors"underpinning"the"use"of"457"visas"in"smaller"
firms,"and"the"experiences"of"employers"and"employees"on"457"visas.""
4.!PARTICIPANT!DETAILS!!
4.1!Employers!"Table"4"shows"information"about"the"type"of"firm,"the"firm"size"(measured"by"the"number"of"employees)"
and"the"number"of"457"visa"workers"in"each"firm"where"a"manager"was"interviewed"(the"four"firms"
where"only"employees"were"interviewed"have"been!excluded"from"this"analysis)."Two"firms"provided"
professional"services,"such"as"project"management"services,"to"other"larger"firms"within"the"resources"
sector;"four"firms"were"engaged"in"engineering"work;"three"firms"provided"trade"skills"like"machining"
or"welding;"and"one"firm"was"involved"in"oil"and"gas"exploration."The"proportion"of"457"visa"workers"in"
these"ten"firms"ranged"from"less"than"10%"(one"firm)"to"over"50%"(two"firms).""
"Table"4!!!Smaller!firm!details!!
Services No. in sample
Total employees No. in sample Total employees on
457 visas No. in
sample Project Management 2 <50 4 <5 4
Engineering 4 51-100 1 6-10 1
Trades 3 101-200 3 11-20 4
Exploration 1 201-300 0 70+ 1
301-400 2
Total 10 - 10 - 10 !
"The"oil"exploration"firm"was"based"in"central"Perth"and"was"a"subsidiary"of"a"multi[national."Two"other"
firms"were"also"based"in"central"Perth,"while"another"two"were"based"in"regional"WA."Four"were"located"
in"an"industrial"area"south"of"Perth"and"one"firm"operated"in"an"industrial"suburb"to"the"east"of"Perth.""
"The"following"short"synopses"provide"an"understanding"of"the"types"of"firms"that"participated"in"the"
study"and"show"the"diversity"of"the"smaller"firms"operating"in"the"resources"sector."As"part"of"supply"
!
24""
chains,"these"smaller"firms"delivered"services"to"others"within"the"sector."Similarities"and"differences"
existed"in"terms"of"the"difficulties"of"attracting"staff"and"consequently,"their"reasons"for"using"
temporary"skilled"migrants"on"457"visas"as"a"solution."These"reasons"are"further"investigated"in"section"
5"of"this"report,"following"a"detailed"description"of"the"workers"interviewed"for"the"study."
!
Smaller!oil!exploration!firm!located!in!the!Perth!CBD!!This"smaller"firm"was"engaged"in"oil"and"gas"exploration"and"specialised"in"seabed[to[surface"
engineering"construction"and"services."A"subsidiary"of"a"multi[national"with"a"14,000"strong"global"
workforce,"employees"on"457"visas"were"used"to"establish"the"Australian"operation"in"2006."The"firm"
required"staff"who"were"familiar"with"their"systems"and"engineering"processes,"so"three"of"the"four"staff"
to"be"based"in"Australia"were"recruited"from"within"and"employed"on"457"visas."At"the"time"of"the"
interview,"of"the"100"employees"in"Australia,"20"were"employed"on"457"visas"and"these"were"
predominantly"from"the"UK."In"addition,"another"220"employees"were"located"offshore,"with"145"of"
these"on"457"visas"from"the"Philippines"and"Asia."Over"the"last"four"years,"28"employees"had"
transitioned"from"457"visas"to"permanent"residency."
!Smaller!project!management!firm!located!in!the!Perth!CBD!
!This"smaller"firm"provided"project"management"services"for"construction"in"the"resources"sectors"in"
WA"and"Queensland."Some"200"technically"trained"staff"were"employed"on"permanent"and"fixed[term"
contracts."In"the"Perth"office"there"were"23"permanent"staff,"of"which"five"were"457"visa"holders."The"
firm"sponsored"skilled"and"experienced"project"managers"from"overseas"after"they"had"difficulty"in"
sourcing"suitably"qualified"workers"in"Australia."They"competed"for"talent"with"larger"firms"that"could"
make"significant"salary"offers"which"they"could"not"afford"to"match;"and"recruited"staff"from"all"over"the"
world"through"advertisements"on"websites,"through"referrals,"and"via"LinkedIn. "
!
25""
!Smaller!mechanical!engineering!firm!located!in!an!industrial!centre!south!of!Perth!!This"was"a"mechanical"engineering"firm"operating"in"an"industrial"area"south"of"Perth."The"firm"
provided"metal"fabrication"services"to"manufacture"and"maintain"components"for"the"mining,"oil"and"
gas"sectors,"including"computer"numerical"control"(CNC)"and"manual"precision"machining"and"welding."
The"firm"had"28"employees"with"specialised"skills"in"the"machining"and"manufacture"of"intricate"metal"
components."At"the"time"of"this"study,"the"firm"was"sponsoring"two"457"visa"workers."Over"the"previous"
five"years,"another"five"workers"had"upgraded"from"457"visas"to"permanent"residence."The"firm"was"
situated"in"an"area"with"a"higher[than[average"unemployment"rate"(6.7%),"where"35.6%"of"the"youth"
population"(15[19"years"of"age)"was"not"in"work"or"study"(ABS,"2013b)."Despite"this,"the"firm"had"
experienced"difficulties"recruiting"workers"with"the"specialised"machining"skills"they"required."To"
overcome"these"difficulties,"the"owner[manager"engaged"a"Perth[based"recruitment"agency"who"
supplied"him"with"around"50"resumes"of"qualified"workers"living"in"the"Philippines."After"shortlisting"
the"candidates,"the"owner[manager"flew"to"Manila"and"personally"interviewed"all"20"candidates,"finally"
narrowing"the"list"down"to"10"potential"employees."He"tested"their"skills"on"available"machines"at"a"
local"training"centre."The"owner[manager"acknowledged"that"the"Filipino"workers’"skills"were"not"as"
high"as"their"counterparts"in"Australia,"primarily"because"the"same"quality"of"machinery"was"not"
available"to"them"for"training,"yet"he"was"prepared"to"invest"in"additional"training"during"their"first"two"
years"of"employment."In"his"firm,"skilled"migrants"were"an"attractive"option"as"it"allowed"him"to"
complete"contracts"within"a"shorer"timeframe."Domestic"workers"refined"the"work"done"by"migrants"in"
the"early"stages"of"their"employment,"until"they"acquired"the"necessary"level"of"skills"with"training"over"
time.""
"
!
Smaller!engineering!firm!located!in!a!regional!WA!town!!This"smaller"engineering"firm"operated"in"major"mining"centres"in"regional"WA"(for"example,"Kalgoorlie"
and"Port"Hedland)."They"employed"300"staff"with"some"70"employed"on"457"visas."The"vast"majority"of"
457"visa"holders"were"boiler"makers,"fitters"and"fix"bump"fitters."The"firm"recruited"these"employees,"
who"were"mainly"from"Ireland"and"the"UK,"through"a"recruitment"agency,"after"experiencing"difficulties"
attracting"Australian"employees"willing"to"live"and"work"in"regional"WA."Unlike"other"firms"in"the"
industry,"this"one"did"not"employ"staff"on"fly[in[fly[out"contracts,"as"the"preference"was"to"locate"staff"in"
the"community"where"the"work"was"based.""
!
26""
4.2!Workers!"Firms"sought"the"expertise"of"project"managers,"engineers"and"technicians,"construction"managers,"
welders,"boilermakers,"pipe"fitters,"machine"operators,"geologists,"architects"and"carpenters."Workers"
employed"by"these"firms"on"457"visas"came"from"the"UK,"Ireland,"South"Africa,"India,"the"USA,"the"
Philippines,"China,"Malaysia,"Romania,"Germany,"Norway,"Egypt,"Zimbabwe"and"Papua New Guinea. In
Table 5, information about the workers’ countries of origin and the skills for which they were
employed, are reported.
Table"5!!Workers’!countries!of!origin!and!skills!!!Country No. in sample Skills No. in sample
Philippines 7 Project Manager 1 Spain 2 Engineer/Technician 6 Ireland 2 Specialist Consultant 2 UK 4 Mechanical Fitter 1 Brazil 1 Pipe Fitter 2 India 3 Machine Operator 4 US 1 Boilermaker 3 Geologist 1 Total 20 20 "The"following"tables"show"demographic"information"for"20"workers"on"457"visas"who"were"
interviewed"for"this"study."Two"were"female"and"the"remainder"male."All"but"two"workers"were"based"
in"Perth."Six"were"recruited"onshore;"three"came"to"Australia"on"student"visas,"and"three"others"were"in"
the"country"on"short[term"working"visas."The"14"remaining"workers"were"recruited"offshore"and"came"
to"Australia"on"457"visas."Almost"half"of"the"sample"was"recruited"offshore"in"the"Philippines.""
"In"Table"6"the"workers’"ages,"time"spent"in"Australia,"and"their"salary"ranges"are"reported."Those"
interviewed"were"aged"between"24"and"49"years."Fifteen"had"been"in"Australia"for"less"than"2"years."
Eleven"had"an"annual"pre[tax"salary"of"less"than"$74,000;"five"were"paid"between"$75,000"and"$99,000;"
and"four"earned"above"$100,000.""
"""""
!
27""
Table"6!!Age,!salary!and!length!of!time!in!Australia!!!
Age in years No. in sample Time in Australia No. in sample Salary Range No. in sample
20-29 3 0-1 years 7 $50-74K 11 30-39 10 1-2 years 8 $75-99K 5 40-49 7 2-3 years 2 $100K+ 4 3-4 years 1 4+ years 2 Total 20 - 20 - 20 "Seventeen"of"the"workers"interviewed"were"married"or"in"a"de[facto"relationship."Nine"of"them"had"
their"family"with"them"in"Australia,"and"as"shown"in"Table"7,"thirteen"of"the"workers"interviewed"had"at"
least"one"child."Six"workers"had"left"their"family"in"their"home"countries"["these"were"predominantly"
from"the"Philippines."Only"one"worker"from"the"Philippines"had"brought"his"family"with"him"to"WA."This"
is"not"an"uncommon"practice"for"Filipino"workers"who"often"leave"their"family"in"their"home"country"
until"they"qualify"for"permanent"residence"(Bahn,"forthcoming)."
Table"7!!!Number!of!children!of!457!visa!workers!!
No. of children No. of workers
None 7 1 2 2 7 3 3 4 1
Total 20 Of"the"nine"workers"who"brought"their"families"with"them"to"Australia,"only"seven"of"the"spouses"or"
partners"were"also"working."They"mainly"worked"in"the"care"sector"(aged"care"and"child"care)"and"
hospitality"(waitressing)."Two"had"professional"roles;"one"worked"in"the"oil"and"gas"sector"while"the"
other"worked"as"a"dental"nurse."Three"spouses"and"partners"were"employed"on"a"part[time"basis.""
"In"the"next"section,"the"interview"data"are"reported"in"terms"of"the"different"themes"found"in"the"
employer"and"employee"interviews.""
!
28""
5.!FINDINGS!
5.1!Employer!Issues!"The"following"themes"emerged"from"wide[ranging"discussions"with"employers"about"sponsoring"
temporary"migrant"workers"on"457"visas:"
" Skills"were"not"available"in"Australia"
Bad"experiences"with"domestic"workers""
457"visa"workers"facilitate"firm"growth"
Positive"experiences"of"457"visa"workers"
Desire"for"workers"to"‘fit’"
HRM"practices"to"secure"commitment""
Visa"processes"
Each"of"the"themes"is"discussed"below"and"quotes"from"interviews"are"used"for"illustration.""
5.1.1!Theme!1:!Skills!not!Available!in!Australia!"Employers"unanimously"agreed"that"they"needed"to"sponsor"temporary"skilled"migrant"workers"on"457"
visas"because"they"were"unable"to"find"workers"with"appropriate"skills"in"Australia."For"example,"firms"
had"tried"advertising"for"workers"in"Australia"without"success:"“I"ran"ads"for"weeks"and"weeks"on"end"in"
the"West"Australian"and"hardly"even"a"response;"to"get"qualified"machinists"was"very,"very"difficult”"
(Manager"10,"Trade)."A"similar"situation"existed"for"an"engineering"firm:""
"Our"advertising"responses"in"Perth"and"Sydney"were"shocking."We’d"get"four"responses"out"of"
Perth,"10"out"of"Sydney"and"Tasmania"combined"and"the"quality…"they"just"weren’t"good"
enough."We"were"getting"guys"who"just"weren’t"trade"qualified"(Manager"5,"Engineering)."
"As"a"result"of"their"lack"of"success"in"Australia"they"looked"overseas"for"workers:"
"We"advertised"in"the"UK"and"Ireland."We"looked"where"the"economy"was"pretty"ropey"and"there"
were"good"quality"trade"skills,"a"cultural"fit"and"language"skills."It"was"a"no"brainer"to"go"to"
England"and"Ireland."As"for"if"there"were"tradies"in"Australia?"There"may"be"but"so"few"were"
coming"from"the"Eastern"states,"so"it"just"wasn’t"worth"putting"a"six"grand"advert"in"a"
newspaper"in"Sydney"to"get"two"or"three"responses"of"quality"and"even"then"we"could"rarely"get"
a"bloke"to"come"over."It"just"wasn’t"worth"our"while."The"same"with"New"Zealand."It"seems"New"
Zealand"was"almost"exhausted"of"qualified"trades"men"and"fitters"because"we"just"weren’t"
getting"any"response"to"our"adverts"over"there"(Manager"5,"Engineering)."
!
29""
"The"lack"of"interest"in"relocating"for"work"was"experienced"by"other"employers,"as"one"argued:"
"
The"Federal"government"is"saying"that"they"[workers"on"457"visas]"are"taking"Australian"jobs."
Bloody"hell!"They"may"be"in"Sydney"or"Melbourne"or"South"Australia,"but"it"is"booming"here!"We"
just"can’t"get"people"over"here"from"the"Eastern"states."Instead,"a"lot"of"people"who"come"
knocking"on"the"doors"are"457s."I"think"they"might"be"jumping"ship"from"one"company"to"the"
next"(Manager"3,"Engineering)."
"Another"employer"whose"employees"were"permanently"located"in"regional"parts"of"WA"also"
experienced"difficulties"attracting"Perth[based"employees"to"move."He"said:"“People"generally"want"to"
work"and"live"in"Perth"but"we"are"based"in"[WA"regional"city]."People"don’t"want"to"move"to"regional"
towns”"(Manager"2,"Trade).""
"There"was"also"an"issue"with"how"much"employers"could"afford"to"pay."One"employer"argued:""
"It"was"mainly"out"of"necessity"[to"employ"workers"on"457"visas]."It"is"obviously"a"lot"easier"to"
hire"Australians"but"they"just"were"not"available"in"the"West"Australian"market"or"they"were"
way"too"expensive"and"we"would"not"be"able"to"support"their"salaries"(Manager"7,"Project"
Management)."
"Workers’"salary"expectations"were"above"what"employers"were"able"to"afford,"so"while"some"skills"were"
available,"employers"couldn’t"afford"to"pay"the"asking"price."These"employers"suggested:"
""I"have"people"coming"in"unskilled,"not"good"tradesmen,"demanding"extremely"high"dollars"and"
they"can’t"do"the"work"and"they"make"stuff"ups"in"the"workshop"and"then"it"costs"me"in"repairs."
The"quality"of"the"people,"it"is"just"shocking;"it"is"a"waste"of"paper"putting"in"their"resume"
(Manager"1,"Trade)."
"To"be"honest"a"lot"of"the"guys"out"there"in"the"market"didn’t"often"have"the"skills"we"needed"and"
they"were"asking"for"these"massive"salaries."You"would"have"people"who"would"do"just"like"a"
two"day"course"and"think"that"they"could"just"jump"into"one"of"our"roles"and"charge"you"know"
$200"or"$300,000"for"themselves"(Manager"7,"Project"Manager)."
"You"have"junior"guys"coming"out"with"two"or"three"years"trades"experience"asking"for"rates"that"
guys"who"have"been"around"for"more"than"20"years"in"the"trade"are"paid"(Manager"6,"
Engineering)."
"
!
30""
Firms"competed"for"skilled"workers"for"large"resource"sector"projects"in"WAs"north"and"were"often"
challenged"to"meet"competitive"pay"and"conditions."These"managers"indicated:"
"I"think"Perth"engineering"companies"got"the"raw"end"of"the"stick"with"this"boom"because"we"lost"
all"of"our"quality"tradesmen"to"the"north"to"huge"money"so"all"of"a"sudden"if"you"wanted"to"
employ"anybody"they"were"not"going"to"get"out"of"bed"unless"you"paid"them"$40[50"an"hour"
(Manager"10,"Trade)."
"In"WA"in"particular"and"during"the"boom"it"was"very"hard"to"get"good"skilled"workers"because"of"
the"inflated"prices"that"the"people"were"paying"in"resources"up"north."It"meant"that"a"lot"of"
people"who"didn’t"have"the"skills"were"demanding"massive"salaries"(Manager"7,"Project"
Management)."
"For"smaller"firms"who"were"subsidiaries"of"a"multi[national,"the"rationale"for"employing"457"visa"
workers"was"slightly"different."One"manager"said:""
"Because"we"were"starting"as"a"subsidiary"of"a"global"company"the"expertise"we"needed"here"
wasn’t"readily"available."We"really"did"need"people"to"kick"off"the"company"who"knew"how"to"
work"our"systems"and"run"our"engineering"processes."That’s"why"we"started"down"the"457"
track"(Manager"9,"Oil"Exploration)."
"As"with"the"findings"of"Khoo"et"al.,"there"was"evidence"of"a"global"orientation"amongst"some"of"the"firms,"
as"indicated"by"this"quote"from"Manager"8:"
""It"just"opens"the"market"for"us,"that"little"bit"more,"when"we"bring"somebody"from"another"
country"or"market."They"are"bringing"so"much"more"in"the"way"of"contacts,"and"experiences"and"
you"know"I"guess"there"is"a"certain"limit"to"the"sorts"of"projects"or"the"sort"of"experience"that"
people"can"get"here"(Manager"8,"Project"Management)."
"This"discussion"indicates"that"while"skills"shortages"were"the"ostensible"reason"for"using"workers"on"
457"visas,"the"skills"shortage"was"relative"to"the"firm,"its"needs"and"its"ability"to"pay."This"is"not"to"say"
that"the"use"of"457"was"a"means"of"circumventing"Australian"pay"rates"and"conditions,"as"this"quote"
from"an"employer"indicates:""
"In"the"boom,"unfortunately"we"had"to"put"our"prices"up"a"little"bit"to"cover"wages"and"then"we"
became"uncompetitive."The"457s"were"good"because"they"were"on"lower"wages."But"they"also"
had"lower"output."By"the"time"we"got"them"to"the"output"we"wanted,"they"were"on"similar"wages"
!
31""
to"our"guys"anyway."So"that"really"I"wouldn’t"say"I"would"employ"them"for"financial"gain"
(Manager"10,"Trade)."
"The"four"main"reasons"cited"by"employers"for"needing"to"sponsor"skilled"migrants"were:"Australian"
workers"did"not"have"suitable"experience;"were"unwilling"to"relocate;"had"a"lack"of"specific"knowledge"
or"skills;"and"had"unrealistic"pay"expectations."Job"applicants"were"either"inexperienced"or"demanded"
pay"rates"beyond"the"reach"of"these"employers."In"other"cases,"the"jobs"required"specific"experience"that"
Australian"workers"either"did"not"have"or"were"in"places"that"Australian"workers"did"not"want"to"live.""
5.1.2!Theme!2:!Bad!Experiences!with!Domestic!Workers!"Related"to"the"theme"of"skills"shortages,"are"the"experiences"employers"had"with"domestic"workers,"not"
only"in"terms"of"their"expectations,"but"also"in"terms"of"the"quality"of"their"work"and"work"ethic.""
"Employers"reported"negative"experiences"with"domestic"workers"in"relation"to"their"pay"expectations,"
as"the"following"stories"suggest:""
"I"had"a"chat"to"one"guy"[a"machinist"laid"off"from"a"job"up"north]"a"while"ago"but"when"I"told"him"
the"rate"I"was"paying"my"workers,"which"was"about"$35"an"hour,"he"goes"‘O"God"I"don’t"get"out"
of"bed"for"that’!"He"used"to"be"on"huge"money"up"north"and"he’d"rather"be"unemployed"than"
work"for"my"money"(Manager"10,"Trade)."
"Another"employer"had"a"similar"encounter:"
""We"get"the"Australians"coming"back"from"up"north"demanding"the"same"high"wages"they"got"up"
there…We"find"people"have"grown"with"the"boom"and"they"have"all"of"a"sudden"become"prima"
donnas"and"they"only"work"for"these"high"wages"(Manager"3,"Engineering)."
"Pay"expectations"were"problematic"and"exacerbated"by"the"shortage"of"workers"and"the"war"for"talent."
This"is"evident"from"the"following"quote:"
"The"attitude"out"there"is"‘well"I"am"just"in"it"for"me’."At"the"end"of"the"day,"they"will"jump"ship"for"
50"cents"more"an"hour,"not"realising"that"the"work"is"going"to"run"out"in"two"months’"time"and"
then"they"come"back"to"our"door"looking"for"work"again!"(Manager"4,"Engineering).""
"The"problem"was"put"bluntly"by"one"manager"in"the"following"way:"
""A"lot"of"them"[domestic"workers]"have"a"drug"and"alcohol"problem,"a"lack"of"skills"problem,"I"
can’t"get"out"of"bed"problem,"and"I"can’t"be"bothered"to"come"to"work"problem."That’s"what"I"
!
32""
find"with"the"locals."They"come"in,"I"put"them"on"3"months’"probation"and"they"last"between"3"
days"and"3"weeks."I"get"a"job"in"that"I"have"a"schedule"on,"and"I"get"in"a"load"of"people."But"all"of"a"
sudden"they"walk,"and"I"am"left"with"no"one."I"sooner"have"the"457’s"(Manager"1,"Trade)."
"Employers"generally"experienced"instability"in"the"domestic"workforce"driven"by"expectations"of"
increased"pay."There"was"a"view"that"employees"were"prone"to"changing"jobs"even"for"small"pay"
increases"and"lacked"loyalty"and"commitment"to"their"employers."The"unreliability"of"domestic"workers"
was"seen"as"undermining"business"growth"and"compromising"the"ability"of"firms"to"meet"their"
contractual"obligations.""
5.1.3!Theme!3:!457!Visa!Workers!Facilitate!Firm!Growth!"For"many"of"the"smaller"employers,"firm"growth"was"negatively"impacted"by"an"inability"to"recruit"
appropriately"skilled"workers"at"rates"they"could"afford,"and"sponsoring"skilled"temporary"migrants"on"
457"visas"provided"an"alternative"for"facilitating"growth."One"manager"said:"“we"have"been"able"to"get"
more"work”"(Manager"4,"Engineering)."
"Firm"growth"as"a"result"of"457"visa"workers"on"was"explicitly"stated"as"an"outcome"by"some"of"the"
managers:"“we"need"to"get"this"job"out;"it"affects"the"future"of"the"company."If"we"don’t"get"it"out,"we"are"
really"in"trouble”"(Manager"1,"Trade)."Or"as"another"manager"said,"“if"it"wasn’t"for"the"457"visa"workers,"
the"business"would"have"collapsed”"(Manager"4,"Engineering)."
"Firms’"reputations"were"under"threat"as"a"result"of"worker"shortages."These"managers"suggested:"
"It"[employing"457"visa"workers]"expanded"our"capability"beyond"me."I"was"the"only"person"with"
the"skills"and"it"enabled"me"to"free"up"some"of"my"time"to"do"more"business"development"
activities."It"basically"enabled"us"to"grow"to"where"we"are"now;"it"stabilised"us."If"it"wasn’t"for"
those"skills"that"we"got"through"457s,"then"we"wouldn’t"have"been"able"to"build"the"business"
(Manager"7,"Project"Management)."
"We"needed"them"because"we"had"so"much"work"on"and"we"couldn’t"find"workers"so"we"were"
turning"jobs"down"because"we"didn’t"have"enough"blokes"to"do"them,"we"couldn’t"service"
contracts."Because"of"the"457"workers,"suddenly"we"were"getting"work"that"we"normally"would"
not"have"got,"or"we"hadn’t"got"three"years"ago,"never"been"invited"back"again,"and"that"is"
because"of"the"quality"of"the"people"we"had,"it"made"a"real"difference."If"we"hadn’t"got"them,"we"
would"have"been"in"trouble"because"we"know"of"competitors"in"[WA"regional"city]"that"have"just"
let"their"support"staff"go,"because"they"couldn’t"sustain"the"demand,"they"just"couldn’t"get"the"
work"in,"they"just"couldn’t"expand."It"has"allowed"us"to"expand"and"develop"and"increase"our"
!
33""
capital"expenditure"because"we"know"we"can"move"into"different"areas"because"we"got"the"skills"
to"do"it"now"(Manager"5,"Engineering)."
"Intra[company"transfers"and"workers"on"457"visas"were"needed"to"build"this"firm’s"Australian"
operation:"
""It"is"how"we"built"this"organisation."It"was"fundamental"to"the"business."We"wouldn’t"have"had"
the"expertise"to"tender"for"the"[large"multi[national"resources"firm]"job,"and"I"think"we"just"
wouldn’t"have"had"a"robust"organisation."We"may"not"have"grown"to"where"we"are"today,"we"
might"have"done"that"job,"made"a"significant"loss"and"then"had"to"leave"the"country"(Manager"9,"
Oil"Exploration)."
"Many"of"these"firms"subcontracted"to"larger"firms,"so"it"was"important"for"them"to"meet"their"
contractual"obligations."One"manager"stated:"
""Now"in"tenders"our"clients"actually"ask"us"‘how"do"you"intend"to"staff"our"project?’"So"our"clients"
are"constantly"addressing"the"skill"shortage,"they"want"to"know"that"local"labour"can"be"
supplemented"with"foreign"workers"if"needed"(Manager"9,"Oil"Exploration)."
"Another"manager"said:"
""We"are"in"business"to"get"the"work."But"then"you"get"the"work"and"you"can’t"do"it"if"you"haven’t"
got"the"staff."Before"I"got"my"first"457,"I"probably"had"a"total"of"staff"of"about"18."Now"we"have"
about"30"(Manager"10,"Trade)."
"However,"another"manager"pointed"out"this"can"be"a"gamble:""
"Basically"we"have"to"start"the"process"on"a"gamble"on"a"forecast"of"what"we"anticipate"we’ll"
need."Once"we"make"a"commitment,"then"we"have"to"find"work"for"those"people."So"it’s"a"real"
balancing"act"for"a"small"to"medium"sized"business"because"we"are"not"going"to"get"a"contract"
worth"$30[40"million"so"we"can"plan"for"2–3"years’"work."We"get"very"quick"turnarounds"on"3"to"
4"month"projects"and"so"we’re"gambling"to"get"people"here"to"fill"these"contracts."We"don’t"want"
it"to"be"quiet"when"they"come"in"here,"because"then"we"have"to"bear"the"cost"of"it"(Manager"3,"
Engineering)."
"The"employment"of"457"visa"workers"gave"employers"confidence"in"their"ability"to"take"on"and"deliver"
more"work,"thereby"growing"their"businesses."457"visa"workers"provided"some"(albeit"temporary)"
stability"to"their"workforce"and"reduced"scheduling"risks."These"employers"were"able"to"extend"their"
!
34""
searches"for"specific"skills"beyond"national"borders,"resulting"in"recruitment"of"workers"with"new"ideas"
to"help"their"business"grow.""
5.1.4!Theme!4:!Positive!Experiences!of!457!Visa!Workers!"The"fourth"theme"to"emerge"from"the"interviews"overlaps"elements"in"theme"2,"and"relates"to"the"
positive"experiences"of"migrant"workers."457"visa"contracts"come"with"a"maximum"term"of"four"years"
and"while"these"workers"are"permitted"to"move"between"employers,"they"must"leave"the"country"within"
28"days"if"they"are"unemployed."Nevertheless"employers"found"they"had"greater"stability"with"457"visa"
workers,"as"the"following"quotes"suggest:"
""The"Australians"we"find"are"a"little"bit"like"prostitutes:"you"offer"them"an"extra"couple"of"dollars"
and"they"just"disappear"and"they"just"leave"us"in"the"lurch."Whereas"we"find"the"Filipino"workers"
are"very"loyal"(Manager"3,"Engineering).""
"
We"don’t"get"the"reliability,"unfortunately,"from"the"Australian"workers."They"will"leave"for"an"
extra"50"cents"an"hour."So"our"casual"turnover"here"is"just"phenomenal."A"lot"of"the"time"guys"
just"leave"even"before"we"get"their"paperwork"to"them!"We"wanted"a"good"base"of"employees,"
who"we"knew"would"be"reliable"and"we"knew"would"be"happy"to"have"the"work"and"not"
complain"about"everything."With"the"Australian"guys"you"have"to"put"up"with"back"chat"
(Manager"4,"Engineering)."
"You"can"pull"the"time"sheets"and"have"a"look"the"guys"that"have"been"here"for"12"hours."Aussie"
guys"worked"10"hours"and"no"Saturdays."Usually"the"Filipino"guys"were"here"for"their"12"hours"
and"8"hours"on"Saturday"(Manager"1,"Trade)."
"Positive"experiences"of"migrant"workers"were"also"evident"from"their"work"ethic"and"behaviour"at"
work."One"manager"explained:""
"They"seem"to"fit"in"really"well."The"biggest"thing"about"them"is"their"attitude"is"really"good,"so"
that"tends"to"encourage"other"people,"you"know."‘I"want"him"on"my"team’."So"there"is"a"buy[in"to"
them."I"see"quite"positive"buy[in"from"everybody,"especially"with"supervisors"and"with"the"
managers,"because"these"guys,"they"are"so"keen"(Manager"3,"Engineering)."
""One"manager"responded"as"follows"to"why"he"used"457"visas:""
"Skills"and"attitude;"because"since"we"have"had"the"guys"over,"the"quality"of"work"they"have"done"
is"sensational."Our"safety"figures"have"just"fallen"off"the"cliff."We"have"actually"gone"two"months"
without"even"a"minor"incident"in"the"whole"company."Particularly"the"Irish;"very"good"workers."
!
35""
And,"this"is"going"to"sound"terrible,"but"Australian"workers"have"got"complacent,"a"little"bit"lazy."
It"has"made"such"a"difference,"not"just"to"the"quality"of"our"work"but"our"reputation"with"our"
clients"(Manager"5,"Engineering)."
"Firms"acknowledged"the"benefit"of"learning"new"techniques"and"acquiring"new"knowledge"from"
migrant"workers."In"particular,"the"following"two"firms"employed"staff"who"were"part"of"a"group"of"
globally"mobile"management:"
"This"person"has"done"some"exciting"things"and"so"straight"away"you"can"share"that"knowledge"
with"your"people,"and"it"all"adds"to"that"experience."So,"it’s"just"broadening"the"pool"(Manager"8,"
Project"Management)."
"We"bring"people"in"where"we"can,"we"also"send"our"people"to"work"on"different"projects"in"
different"locations"where"the"expertise"is."So,"they"come"back"after"2"or"3"years,"and"can"bring"
something"back"to"the"local"organisation"as"well."It’s"kind"of"a"two"way"street"for"us."It’s"all"about"
global"mobility"and"transfer"skills"and"building"skills"in"different"areas"(Manager"9,"Oil"
Exploration)."
"In"summary,"four"discernible"themes"emerged"for"why"smaller"employers"used"457"visa"workers."The"
main"reason"was"a"skills"shortage,"specifically"related"to"the"particular"needs"of"the"business."Negative"
experiences"with"local"workers"and"positive"experiences"with"457"visa"holders"encouraged"employers"
to"sponsor"temporary"migrant"labour"to"fill"gaps"in"their"workforce."Using"457"visa"workers"to"meet"
their"needs"enabled"firms"to"take"on"work"that"would"otherwise"have"been"inaccessible,"and"as"a"result"
their"business"grew.""
"Many"positive"reasons"were"cited"for"employing"457"visa"workers."The"only"problem"was"associated"
with"workers"from"non[English"speaking"backgrounds."One"employer"noted:"“their"comprehension"is"
the"only"downfall"we"see"with"these"guys”"(Manager"3,"Engineering)."As"recruitment"is"only"one"HRM"
practice"in"a"larger"framework"of"strategic"orientation,"it"is"also"necessary"to"examine"other"HRM"
practices"used"by"employers"to"ensure"“fit”.""
5.1.5!Theme!5:!Desire!for!Workers!to!“fit”!"As"with"recruitment"of"any"workers"in"smaller"firms,"employers"were"concerned"about"“fit”."A"range"of"
processes"were"undertaken"at"the"selection"stage"to"check"and"ensure"potential"457"visa"workers"would"
fit"into"the"business,"not"only"socially,"but"also"with"regard"to"particular"skills"needed"by"the"firm."The"
concern"with"fit"is"evident"from"the"following"quotes:"
"
!
36""
My"major"barrier"to"engage"457s"is"the"cost"of"recruitment"and"determining"whether"they"
would"fit"in,"so"I"have"got"to"go"overseas"and"I"have"got"to"interview"them,"even"if"I"go"through"
an"agent"who"is"recruiting"people"from"the"Philippines"because"I"don’t"know"whether"that"
person"is"going"to"work"(Manager"6,"Engineering)."
"Just"how"they"work,"you"know,"what"is"their"work"ethic?"How"do"they"interact"with"other"
people;"how"do"they"communicate?"We"have"a"certain"way"of"communication"that"is"really"
important."How"somebody"from"another"country"is"going"to"fit"into"this"workshop"because"they"
can"be"fantastic"workers"they"can"do"everything"right"but"if"they"don’t"fit"in"with"the"guys"they"
work"with"then"that"is"a"concern"(Manager"6,"Engineering)."
"Employers"used"different"methods"to"ensure"workers"had"the"right"skills."Interviewing"was"an"
important"step,"because"as"one"employer"explained,"it"allowed"him"to:"“…speak"to"people"and"try"to"get"
a"feel"for"whether"they"would"be"a"good"fit"with"the"organisation”"(Manager"7,"Project"Management)."
"Another"employer"spoke"of"the"value"of"the"interview"and"the"lengths"to"which"they"went"to"ensure"fit:"
""We"put"adverts"in"various"different"websites"and"newspapers"in"the"UK"and"Ireland"and"waded"
through"the"hundreds"of"responses"that"we"got,"very"good"responses,"over"400"responses"for"
each"advert."Then"we"hired"a"hotel"room,"one"in"Dublin,"one"in"England,"and"then"we"just"set"up"
interviews"for"those"that"we"felt"were"match."We"were"targeting"family"people:"blokes"in"their"
30s"with"good"experience"and"families"to"put"some"roots"down,"and"make"a"contribution"to"the"
communities."We"were"very"conscious"of"that"part"of"our"strategy."We"specifically"avoided"expos"
and"shows,"because"they"are"just"full"of"lots"of"tyre"kickers"(Manager"5,"Engineering)."
"Where"trade"skills"were"required,"the"interview"was"followed"by"a"testing"process."One"employer"
learned"the"hard"way"not"to"omit"this"step"after"previously"having"made"a"poor"decision"when"trade"
workers"were"interviewed"only"on"Skype."For"one"such"employer,"testing"to"ensure"fit"was"outlined"as"
follows:"
""If"they"don’t"have"their"IELTS,"then"I"don’t"test"them."For"those"that"do,"I"go"through"and"test"the"
welders"myself"and"the"boiler"makers."I’ve"got"my"own"test,"which"I"find"is"harder"than"the"test"
the"University"gives."It’s"suitable"to"my"workshop"and"I"find"the"people"that"pass"my"test"do"not"
have"a"problem"with"the"university"test"(Manager"1,"Trade)."
"Another"employer"took"a"similar"approach"to"assessing"trade"skills"after"initially"short[listing"and"then"
interviewing"potential"workers:"
""
!
37""
In"Manila,"I"hired"machines"for"the"afternoon"and"I"put"ten"guys"on"a"lathe"each."I"handed"them"a"
drawing"and"asked"them"to"make"this"component."I"just"walked"around"and"I"had"a"list"of"
questions"like"where"they"should"be"after"10"minutes,"15"minutes,"20"minutes,"and"then"they"
should"have"finished"the"job"in"about"an"hour"and"a"half."From"those"10,"I"figured"out"pretty"
quickly"which"were"the"two"that"I"wanted"because"even"though"you"they"did"well"in"the"
interview"the"proof"is"definitely"in"the"pudding"(Manager"10,"Trade)."
"However,"testing"in"the"workers’"home"countries"was"not"always"possible"and"so"other"means"were"
used"to"achieve"the"same"result."A"number"of"457"visa"workers"who"were"already"in"the"country"under"a"
different"visa"arrangement"or"exercising"their"right"to"move"between"employers,"were"recruited"from"
within"Australia."One"employer"explained:"
""We"can’t"employ"from"Ireland,"it"is"too"hard"to"get"there"to"do"an"assessment"of"people."So"
normally"the"Irish"will"rock"up"on"our"shore"and"roll"through"my"door"and"if"they"are"on"
working"visa,"they"will"do"some"work"for"us,"show"us"what"they"can"do,"and"then"if"they"turn"out"
pretty"good"we"take"on"their"visa"(Manager"3,"Engineering)."
"Another"employer"used"a"similar"approach:"
""Because"these"guys"were"already"here,"we"could"measure"them"and"check"their"skills."I"don’t"
know"how"people"manage"to"check"their"skills"when"they"are"overseas."I"know"there"are"bodies"
who"verify"their"skills"but"you"can’t"verify"how"they"work."They"might"have"the"skills"but"they"
might"work"at"half"the"pace"(Manager"6,"Engineering)."
"Feedback"indicated"that"referrals"were"a"key"method"of"ensuring"fit"as"common"practice"in"smaller"
firms:"“the"way"we"recruit"largely"is"based"on"referral,"and"we"recruit"for"particular"projects"or"possibly"
industry"sectors”"(Manager"8,"Project"Management)."
"In"summary,"interviews,"testing,"job"try[outs"and"referrals"were"all"methods"used"by"employers"to"assist"
them"in"making"decisions"about"selecting"workers.""
5.1.6!Theme!6:!HRM!Practices!to!Secure!Commitment!"Once"recruited"and"selected,"the"tenuous"nature"of"employing"457"visa"workers"needed"careful"
management,"since"the"457"visa"allows"workers"to"move"between"Australian"employers"and"does"not"
lock"them"into"a"set"period"of"time."Furthermore,"workers"could"choose"to"leave"their"employer"and"
return"home"at"any"point."Firms"therefore"needed"to"engage"in"a"series"of"practices"that"built"employee"
loyalty"and"long"term"commitment"in"order"to"realise"their"investment"in"recruitment.""
"
!
38""
As"one"employer"explained,"the"cost"of"recruitment"can"be"high:"
"We"get"4"years"with"these"guys."We"ask"that"they"stay"with"us"for"at"least"for"12"months"for"us"to"
be"able"to"recoup"the"cost"that"we"put"into"getting"them"into"Australia,"which"is"significant."
Especially"considering"that"we"have"gone"through"an"agency"that"helps"us"screen"them"in"the"
Philippines"and"bring"them"over."Then"we"have"had"to"get"them"set"up"in"accommodation"and"
generally"set"up"for"work:"uniforms"and"everything"like"that"can"be"quite"expensive;"about"
$8,000"per"person"(Manager"4,"Engineering).""
"A"variety"of"financial"and"non[financial"support"was"provided"to"ensure"workers"came,"fitted"in"and"
stayed."The"following"quote"from"one"employer"indicates"some"of"the"ways"in"which"this"happened:"
""We"do"newsletters"for"the"family,"we"send"them"this"is"what"it"looks"like,"this"is"what"you"got"to"
do,"here"are"some"pictures,"this"is"what"temperatures"are"like….We"expect"people"to"pay"their"
own"visa"fees,"the"350"odd"dollars"or"however"much"it"is,"and"fly"themselves"over,"bring"the"
family"over,"all"at"their"expense."But"we"do"offer"a"bonus"at"the"end"of"their"first"year,"as"a"
relocation"bonus,"to"pay"some"of"that"back"as"long"as"they"have"worked"with"us"for"12"
continuous"months"but"the"cost"to"us"is"pretty"minimal."At"one"stage"it"was"running"at"$1700"
dollars"per"pom."Some"guys"have"badgered"us"to"pay"for"it,"but"we"have"to"draw"the"line"and"say"
no,"because"if"you"pay"upfront"and"it"don’t"work"out,"the"onus"is"on"us"to"try"and"get"the"money"
back,"and"especially"if"it"don’t"work"out"and"we"have"to"send"them"home,"we"lose"out….But"once"
we"get"them"out"here,"we"do"certain"packages,"from"salary"packaging,"to"paying"for"the"lease"
upfront"and"then"they"do"pay"deduction."We"pay"the"bonds,"we"get"them"the"lease"on"a"property"
of"their"own,"and"we"give"them"about"a"month"of"free"accommodation"so"they"can"settle."We"
spend"a"lot"of"time"looking"after"them,"lifts,"showing"them"around,"taking"the"families"out"for"
dinner,"making"sure"the"wives"get"to"know"each"other"so"they"have"got"some"friends,"where"the"
hospital"is,"where"the"schools"are,"what"they"need"to"do"to"get"a"bank"account,"and"tax"file"
numbers,"where"the"job"agencies"are"if"they"want"to"get"a"job,"where"the"kindergarten"is,"where"
the"nice"places"to"go"and"eat"are,"where"the"cinema"is"and"sports"centres"are,"all"those"little"
intangible"things"that"help"people"to"settle"in"(Manager"5,"Engineering)."
"Relocation"allowances"were"generally"paid"by"employers"although"the"amounts"differed"greatly."Two"
employers"explained"this"in"terms"of"differences"in"market"value:"
""We"generally"provide"relocation"support"for"people"that"we"hire,"or"relocate"in"the"business"and"
it"is"to"a"certain"level"you"know"which"is"I"think"the"fair"market"rate"in"terms"of"what"they"are"
offered"(Manager"8,"Project"Management)."
!
39""
"Depending"on"the"level,"we"have"different"packages"and"what"they"get."We"provide"housing"
assistance,"we"pay"the"bond"and"everything"like,"and"so"they"are"not"coming"into"the"country"
and"then"have"to"be"out"of"pocket."We"go"guarantor"for"them,"because"they"usually"wouldn’t"
have"rental"history"in"Australia."We"provide"a"$10,000"settling"in"allowance"when"they"arrive"in"
the"country"to"get"all"those"things"you"need"when"you"are"setting"up"a"house."They"have"a"20"
foot"sea"container"and"a"100K"of"air"freight"to"help"when"they"are"coming"to"Australia,"to"help"
them"bring"their"belongings"and"everything"(Manager"9,"Oil"Exploration)."
"Another"employer"did"not"differentiate:"
""We"pay"the"lot."We"set"them"up"in"a"house"normally"with"other"Filipinos"they"seem"to"get"along"
together,"now"these"guys"normally"have"nothing,"not"a"cent"to"their"names"when"they"arrive."So"
the"first"couple"of"months"we"usually"give"them"a"company"vehicle"and"a"fuel"card."They"wanted"
to"get"a"car"and"I"actually"lent"them"the"money,"because"they"have"gone"to"the"car"yards"and"they"
rip"them"off,"and"charge"them"40%"interest"on"loans"because"they"can’t"get"bank"loans."That’s"
why"we"helped"them"in"that"instance,"and"these"people"are"so"grateful"that"they"have"been"given"
the"opportunity"(Manager"3,"Engineering)."
"The"amount"of"assistance"also"depended"on"where"workers"would"be"located."An"employer"in"regional"
WA,"where"there"was"limited"accommodation"available,"described"the"deal"they"offered"their"457"visa"
workers:"“we"give"you"accommodation"for"maybe"6"months"and"give"you"plenty"of"time"for"you"to"look"
around"and"find"somewhere"yourself”"(Manager"2,"Trade)."
"The"shortage"of"workers"in"WA"made"it"necessary"to"offer"competitive"salaries."One"employer"needed"to"
reassess"his"pay"rates"to"retain"employees:"
"It"got"to"the"point"a"couple"of"years"ago,"I"think"they"were"on"about"$31"or"something"an"hour"
which"is"industry"average"around"Perth."But"as"loyal"as"they"are,"rumours"were"going"around"
some"of"the"Filipinos"were"actually"trying"to"get"a"job"over"there"[waving"hand]"for"a"couple"of"
dollars"extra"an"hour"and"other"firms"wanted"my"guys."So"I"just"bumped"them"all"up"to"$33,"just"
to"try"and"snuff"that"out"(Manager"10,"Trade).""
"Assistance"was"also"provided"in"non[financial"ways:"
"We"helped"with"advising"where"would"be"the"best"place"to"find"a"house,"where"should"they"look,"
what"the"schools"were"like."That"was"usually"done"either"by"me"or"one"of"the"senior"guys."We"
sort"of"would"make"the"effort"of"try"to"prepare"them"as"well"as"possible."We"pay"for"relocation"
!
40""
and"give"them"a"buffer"period"for"when"they"arrive"so"they"can"stay"in"a"hotel,"while"they"are"
looking"for"places"to"live"(Manager"7,"Project"Management)."
"Another"employer"explained:"
""One"of"the"guys"here"is"the"Operations"Manager."He"dealt"with"visa"employees"in"another"place"
that"he"worked"at,"so"he"and"our"OHS"manager"took"them"under"their"wing."They"took"them"out"
and"showed"them"where"to"shop,"we"set"them"up"with"their"first"week"of"groceries"that"kind"of"
thing,"and"then"we"helped"them"buy"their"own"vehicles,"they"have"been"loaned"some"money"to"
help"buy"a"vehicle"to"get"them"around"and"they"slowly"pay"that"back"to"the"company"(Manager"
4,"Engineering)."
"Yet"another"went"further:"
""I"am"the"guy"that"meets"them"at"the"airport,"I"meet"them,"we"go"for"breakfast"down"at"the"
foreshore,"my"wife"meets"us"there,"we"usually"take"them"to"the"bank,"I"take"them"to"meet"the"
rest"of"the"Filipino"guys,"and"we"get"their"passport"photo"so"we"can"start"the"tax"file"details."We"
give"them"new"sheets,"blankets,"pillows,"everything"like"that"to"get"started."The"first"couple"of"
weeks"we"don’t"charge"them"rent,"because"they’ve"got"no"money,"they"come"with"nothing."When"
the"family"comes"in"the"wife"goes"and"helps"them"to"enrol"the"kids"at"school,"takes"her"to"job"
interviews"and"stuff"like"that,"until"she"gets"a"car"(Manager"1,"Trade)."
"Social"practices"were"also"a"focus,"with"one"employer"based"in"regional"WA"saying"they"were"“trying"to"
set"up"a"football"association,"trying"to"get"the"blokes"to"do"that”"(Manager"5,"Engineering)."
"Relocation"allowances,"socialisation"processes,"training"and"competitive"pay"were"all"used"by"
employers"to"entice"workers"to"stay,"however,"there"were"limits"to"what"smaller"firms"could"offer."One"
employer"explained:"
""It"costs"about"$8000"to"bring"a"person"in."We"bring"5"people"in"(for"example)"and"they"are"
saying,"‘ah"they"are"paying"$2"more"up"the"road’,"or"‘we’re"going"to"go"and"do"fly[in[fly[out"with"
some"other"mob’"and"they"can"walk."We’ve"got"no"recourse"for"that"money"we"spent."We"
compete"with"the"big"companies"you"know"we"take"we"can’t"get"the"labour"because"the"big"
companies"are"paying"the"high"dollars"for"fly[in[fly[out"workers"(Manager"1,"Trade)."
"Employers"recognised"the"social"sacrifices"of"workers"on"a"457"visa:"being"away"from"home,"friends"and"
sometimes"family."This"was"advantageous"to"employers"as"the"workplace"became"the"focus"of"the"
workers’"attention."One"employer"said:"
!
41""
""I"think"it"is"the"general"behavioural"pattern"of"the"new"immigrant"who"arrives:"they"are"happy"to"
get"a"job,"it"is"generally"better"paying"than"where"they"have"come"from,"they"want"to"settle"
down,"so"they"focus"in"the"first"year"or"so."They"also"don’t"know"a"lot"of"people,"so"they"don’t"
have"all"these"contacts"and"these"networks"joining"them"to"ever"more"expensive"or"higher"
paying"jobs"(Manager"6,"Engineering)."
"On"the"other"hand,"the"disadvantage"to"their"457"workers"was"social"isolation."Even"those"who"had"their"
family"with"them"in"Australia"encountered"problems,"as"the"following"quotes"suggest:"
"The"number"one"cost"to"the"business"is"the"wives."In"the"last"two"years"we"have"sent"six"
expatriates"back"to"their"home"country"early"who"were"on"457"visas"because"their"wives"didn’t"
assimilate,"didn’t"feel"comfortable,"felt"home"sick….We"have"really"looked"at"our"assignment"
durations,"we"only"do"an"expatriate"assignment"for"a"two"year"period"and"we"have"been"looking"
at"extending"that"to"three"or"four"years,"because"a"lot"of"the"time"the"spouses"are"feeling"‘well"I"
am"only"here"for"two"years"so"what’s"the"point"of"making"friends?’."Whereas"we"find"if"it"is"three"
years"or"more"people"actually"view"it"as"a"long"term"assignment,"whereas"2"years"is"seen"as"
short"term,"which"is"really"bizarre"(Manager"9,"Oil"Exploration).""
"Efforts"were"made"to"reduce"workers’"social"isolation,"but"as"one"employer"explained:"“we"put"so"much"
effort"into"the"families"and"a"lot"of"Australian"people"are"getting"jealous"about"it”"(Manager"5,"
Engineering)."
"As"the"above"quotes"indicate,"employers"incurred"a"range"of"costs"associated"with"employing"457"visa"
workers."In"addition,"their"HRM"processes"required"adjustment"to"cater"for"the"needs"of"temporary"
migrant"workers."As"shown,"some"employers"paid"the"direct"costs"associated"with"the"visa,"while"others"
did"not."Still"others"reimbursed"workers"only"after"a"period"of"employment"had"been"fulfilled.""
5.1.7!Theme!7:!Visa!Processes!"Employers"highlighted"the"time"it"took"for"457"visas"to"be"processed"as"a"critical"issue."One"employer"
observed"that"approvals"were"taking"longer,"while"another"said:"“getting"it"processed"is"ridiculous!"
You’d"think"there"must"only"be"one"person"processing"their"visas”"(Manager"3,"Engineering)."Seen"
together"with"the"overall"length"of"time"between"making"the"selection"and"the"worker"actually"starting"
work,"the"time"taken"for"approvals"was"described"by"one"manager"as:"“a"hell"of"a"long"time”"(Manager"3,"
Engineering)."These"lengthy"waiting"periods"potentially"exposed"the"business"to"negative"changes"in"
resource"sector"conditions,"by"locking"the"firm"into"decisions"that"had"been"made"under"previous"
conditions."Two"employers"commented"on"their"experiences:"
!
42""
""I"had"a"lot"of"jobs"lined"up"and"we"got"people"visas."What"happened"then"was"a"purchase"order"
wasn’t"issued"because"you"can’t"go"and"win"the"job"if"you"don’t"have"the"people"lined"up."It"takes"
a"minimum"of"four"months"to"get"someone"from"the"time"you"test"them,"to"the"time"they"land"at"
Perth"airport."The"trouble"is"it"takes"4"months"to"get"them"in"and"a"lot"of"the"jobs"don’t"have"that"
lead"time"(Manager"1,"Trade)."
"
"I"think"just"for"us"the"sad"thing"is"that"when"we"finally"decided"to"get"the"457"visas,"we"got"the"
guys"secured"in"December,"and"since"then"the"work"has"dropped"off."Now"I"am"sitting"in"a"
situation"where"I"don’t"know"what"to"do"with"them?"Because"we"don’t"have"enough"work"for"
them."So"that"up"and"down"economy"is"making"it"difficult"to"make"decisions"(Manager"6,"
Engineering)."
"However,"employers’"experiences"with"visa"processes"varied."Some"firms"used"the"services"of"a"
migration"agent,"while"others"attempted"to"take"on"the"processes"themselves,"as"the"following"quotes"
indicate."One"employer"said,"“we"were"going"to"bring"them"ourselves"then"realised"we"probably"couldn’t"
do"the"paperwork"so"we"got"that"immigration"company"on"board”"(Manager"1,"Trade)."And"another"
argued:"
"We"employ"the"services"of"a"company"called"XXX"and"they"approached"us"with"an"offer"that"we"
can"get"the"right"skills"for"your"company"and"we"will"go"through"and"short"list"the"best"people."
We"were"invited"to"fly"to"the"Philippines"and"we"have"set"up"a"training"school"there"that"we"
witness"that"they"can"physically"do"the"skills"and"we"short"list"them"again"and"then"we"pay"their"
exorbitant"fee"and"wait"a"hell"of"a"long"time"for"these"people"to"come"over"(Manager"3,"
Engineering)."
"However,"one"firm"manager"indicated"that"using"an"agency"presented"extra"work."He"explained:"
"Basically"for"us"it"is"just"man"power,"I"am"the"only"HR"officer"for"150"odd"staff."I"don’t"know"if"
our"company"realised"how"time"consuming"it"was"going"to"be"to"take"it"on."I"think"they"thought"
they"were"going"through"an"agency"so"it"was"just"going"to"be"straight"forward:"you"pick"the"guys,"
they"come"and"work"(Manager"4,"Engineering)."
"In"another"firm,"the"learning"experience"that"came"with"completing"the"paperwork"resulted"in"them"
doing"the"work"themselves:"
"Remarkably"easy,"we"actually"started"telling"all"the"companies"not"to"go"to"an"agent,"because"the"
457"process"was"really"easy,"once"we"got"all"the"individual"companies"set"up"as"approved"
!
43""
sponsors,"which"itself"was"a"straight"forward"paper"process."The"actual"nominating"of"people"
was"really,"really"straight"forward."Once"we"had"done"the"first"few,"and"made"the"initial"mistakes"
and"corrected"them,"then"we"created"our"own"training"guide"and"from"there"it"would"take"15,"20"
minutes"to"do"each"one."We"were"just"whizzing"through"it"(Manager"5,"Engineering)."
"Compliance"with"457"visa"conditions"came"at"the"cost"of"extra"work"for"firms."One"manager"explained:""
"We"have"to"issue"assignment"letters"we"have"to"issue"salary"increases;"a"lot"of"extra"work"for"
payroll,"we"have"to"setup"superannuation"funds,"we"have"to"pay"into"superannuation"funds,"we"
then"have"to"help"the"guys"apply"for"their"departing"Australia"superannuation"funds"payment"
(Manager"9,"Oil"Exploration)."
"Workers"who"travelled"to"their"work"locations"also"presented"issues"for"some"employers:"
""They"are"harder"to"manage"because"there"are"certain"restrictions"that"you"have"to"adhere"to,"in"
particular,"there"is"the"travel"one"so"as"I"understand"it"you"have"got"to"file"with"immigration"
every"time"they"go"anywhere"or"families"go"anywhere."They"have"to"be"paid"overtime"and"our"
company"doesn’t"pay"overtime,"we"pay"bonuses."But"bonuses"under"immigration"do"not"count"
as"somebody’s"salary,"so"we"have"to"pay"all"of"our"457s"overtime"which"basically"means"our"
Australian"staff"aren’t"getting"paid"overtime"and"this"does"cause"some"issues"sometimes"
(Manager"7,"Project"Management)."
"
5.1.8!Summary!of!Employer!Issues!"Recruitment"and"selection"practices"in"smaller"firms"were"generally"found"to"be"informal"and"ad"hoc,"
and"driven"by"a"purpose"to"find"workers"who"“fit”."The"recruitment"and"selection"of"457"workers"
involve"processes"that"required"employers"to"adopt"a"degree"of"formalisation"in"their"HR"procedures,"a"
contradiction"of"the"norm"within"smaller"firms."However,"despite"the"stringent"requirements"of"457"
visas,"there"are"commonalities"between"this"study"and"others"about"recruitment"and"selection"in"
smaller"firms."The"employers"in"this"study"turned"to"temporary"migrant"labour"because"they"could"not"
find"workers"in"the"domestic"workforce"with"the"skills"and"attributes"they"needed."Some"recruited"
workers"based"offshore,"and"used"the"services"of"recruitment"agencies"or"undertook"their"own"
advertising;"while"others"used"traditional"smaller[firm"methods"of"walk[ins,"referrals"and"job"try[outs"
to"recruit"migrant"workers"already"onshore."Regardless"of"whether"the"recruitment"took"place"onshore"
or"offshore,"there"was"a"strong"desire"to"select"workers"that"“fitted”."Offshore"recruitment"included"
interviews"and"skills"tests"as"a"means"of"assessment,"while"onshore"recruitment"was"characterised"by"
!
44""
referrals"from"a"trusted"source"in"the"employer’s"network"and"formed"a"crucial"part"of"the"process,"
which"also"included"an"interview"and/or"job"try[out.""
"Firms"incurred"significant"costs"by"employing"workers"on"457"visas."These"included"advertising,"
overseas"travel"for"interviews"and"selection"testing,"and"relocation"costs"over"and"above"actual"visa"
processing"expenses."Firms"spent"varied"amounts"depending"on"the"market[related"value"of"the"worker"
to"the"firm,"and"some"were"more"generous"than"others"with"regard"to"visa"and"relocation"costs."Ongoing"
expenses"were"encountered"in"relation"to"socialisation"practices"and"training."There"were"a"range"of"
informal"practices"operating"around"socialisation"which"included"others"from"outside"the"firm."The"
employers"interviewed"for"this"study"regarded"these"expenses"as"investments"in"the"firm’s"future,"
because"the"additional"workers"allowed"them"to"access"projects"and"contracts"that"were"previously"
inaccessible"to"them."As"a"result,"employers"linked"firm"survival"and"growth"to"their"457"visa"workers.""
"Whether"the"current"scenario"will"prevail"in"a"contracting"economy"provides"justification"for"further"
research."Employers"were"conscious"of"the"decline"in"the"WA"resources"sector"and"its"potential"effect"on"
their"workforce."Consequently,"some"firms"were"limiting"the"number"of"457"visa"workers"as"part"of"
their"overall"strategy."One"employer"said,"“we"have"actually"got"a"freeze"on"recruiting"right"now”"
(Manager"7,"Project"Management),"while"another"explained,"
"We"are"not"recruiting"now."We"are"turning"people"down"that"have"either"have"seen"our"website,"
or"are"friends"of"guys"we"have"already"got"over,"and"we"are"saying"to"other"applicants"from"
England"and"Ireland"that"sorry"we"have"closed"that"door"now"(Manager"5,"Engineering)."
5.2!Employee!Issues!"Feedback"from"employers"about"their"recruitment"practices"and"reasons"for"employing"457"visa"
workers,"gives"only"a"partial"picture."It"is"also"necessary"to"understand"employees’"perspectives"on"
working"in"smaller"firms,"in"order"to"enhance"their"attractiveness"and"consequently,"their"ability"to"
recruit"high"quality"employees.""
"
To"obtain"this"information,"20"employees"were"interviewed"to"find"out"why"they"worked"for"a"smaller"
firm,"and"to"explore"their"experiences"as"457"visa"workers,"and"more"specifically,"as"employees"in"a"
smaller"firm."Interviews"with"these"20"workers"were"analysed"and"the"findings"are"reported"below."The"
key"themes"of"these"interviews"included:"
" Reasons"for"wanting"to"work"in"Australia"
Means"of"acquiring"the"job"
Employer"assistance"for"transition"
!
45""
Experience"of"work"
Concerns"about"being"a"457"visa"worker"
Importance"of"support"for"the"family""
The"future"and"permanent"residence"in"Australia"
5.2.1!Theme!1:!Reasons!for!Wanting!to!Work!in!Australia!"The"workers"reported"that"Australia"offered"them"a"number"of"benefits."The"strength"of"the"economy"
was"attractive,"particularly"for"Europeans,"where"the"global"financial"crisis"had"impacted"severely,"as"
the"following"three"quotes"testify."One"worker"said,"“I"was"working"as"Civil"engineer"and"I"worked"for"
about"two"years."But"because"of"the"financial"crisis"I"have"to"leave"the"job,"so"then"I"started"studying"
again"and"then"I"came"here”"(Worker"1,"Engineer"["Spain)."Another"explained,"“Because"of"the"financial"
crises"in"Ireland,"everybody"in"the"UK"is"looking"for"other"options,"and"Australia"and"Canada"are"
particular"countries"that"come"up"strong"every"time”"(Worker"9,"Boilermaker"["Ireland)."The"third"
worker"said,""
"The"economic"conditions"in"Ireland"are"not"suitable"for"professionals"in"my"career,"or"in"fact,"for"
my"partner’s"career."There"is"no"work,"no"employment,"we"would"be"forced"to"work"outside"of"
our"skill"base"and"well"below"our"skill"base."I"wanted"to"experience"more"hands"on"engineering"
and"Australia"is"just"the"absolute"gold"mine"for"experience"in"engineering"(Worker"4,"Engineer"["
Ireland)."
""Australia"offered"workers"opportunities"to"pursue"their"careers,"professional"job"opportunities"and"
higher"paid"employment,"as"the"following"workers"explained:"
"I"was"working"in"Italy"and"I"started"to"look"around"for"some"places"where"I"could"go"and"settle"
down."Basically"there"were"some"options,"but"Australia"presented"the"best"option"because"it"is"a"
developing"country"and"there"is"scarcity"of"skilled"workers."There"is"also"a"lot"of"scope"with"a"lot"
of"projects"which"are"coming"up"(Worker"19,"Specialist"Consultant"["India)."
"
It"gave"me"an"opportunity"to"come"to"Australia,"to"work"in"a"pure"engineering"company,"which"is"
one"thing"that"I"never"did"before."I"worked"in"engineering"but"not"in"a"pure"engineering"
company"that"supplies"designs"and"projects."It"is"really"good"experience"for"me"and"my"
professional"career"(Worker"2,"Engineer"["Spain).""
"It"has"been"my"long"dream"of"coming"to"work"here,"to"earn"my"bread"and"butter,"because"I"have"
had"enough"with"the"news"in"the"Philippines"about"corruption"and"then"most"of"the"Filipinos"
have"been"paid"less"for"what"they"do"(Worker"5,"Engineer"["Philippines)."
!
46""
5.2.2!Theme!2:!Means!of!Acquiring!the!Job!"The"20"workers"interviewed"used"a"range"of"strategies"to"obtain"their"current"jobs."Some"relied"on"
referrals"or"word[of[mouth,"as"the"following"quotes"indicate:""
"I"finished"my"studies"and"then"I"came"here"at"the"end"of"2011"with"a"student"visa."I"was"here"for"
six"months"or"seven"almost"studying"English,"and"when"I"was"getting"to"the"end"of"that"period,"I"
needed"to"find"a"job,"and"I"was"out"of"work"and"I"didn’t"find"any"so"I"needed"to"renew"my"student"
visa"or"do"something,"to"stay"in"Australia."I"found"this"job"thanks"to"my"English"teacher"because"
he"knew"the"civil"engineer"in"the"company"(Worker"1,"Engineer"["Spain)."
"I"came"to"Perth"for"holiday"two"years"ago,"and"I"just"fall"in"love"with"this"place."So"we"decided"to"
move"here,"to"live"here,"and"my"friend"introduced"me"to"the"owner"of"the"company"that"I"started"
to"work"for"(Worker"3,"Engineer"["Brazil).""
"We"were"just"seeing"our"options,"we"knew"we"wanted"to"stay"more"permanently,"but"we"didn’t"
know"which"would"be"best"for"us."So"we"decided"it"would"be"best"finding"out"by"coming"here"
and"experiencing"it"first[hand"and"then"figuring"it"all"out,"rather"than"trying"to"do"it"all"over"the"
internet"and"phone"and"staying"at"home."We"found"that"it"was"easier"to"come"here"and"at"least"
with"the"working"holiday"visa"we"could"get"the"ideal"job"that"we"were"looking"for"and"figure"out"
which"visa"we"actually"wanted"to"go"for,"so"we"could"survive…[Getting"this"job]"was"through"the"
word"of"mouth."It"did"help"a"bit"that"the"guy"in"the"company"was"Irish"(Worker"4,"Engineer"["
Ireland)."
"Few"workers"mentioned"targeting"the"firm"that"employed"them."For"example,"one"worker"said:"“I"only"
knew"that"it"was"an"engineering"company"and"they"were"looking"for"engineers”"(Worker"2,"Engineer"["
Spain)."Another"worker"simply"looked"for"a"job"that"suited"his"skills."He"said:"
""I"searched"probably"hundreds"and"hundreds"of"companies"in"WA"for"work"in"the"resources"
industries"and"then"I"applied"to"that"many."Blanket"bombing,"is"just"what"it"was."All"and"any."By"
the"time"I"got"a"reply"I"had"been"applying"for"months"(Worker"9,"Boilermaker"["Ireland)."
"One"of"the"workers"from"the"Philippines"signed"on"with"a"recruitment"agency."He"explained:"“I"applied"
to"an"agency"in"the"Philippines,"and"they"interviewed"me"and"then"they"passed"me"to"the"first"employer”"
(Worker"10,"Pipe"Fitter"["Philippines).""
"Some"workers"were"attracted"to"specific"attributes"of"the"firm"they"worked"for"related"to"its"reputation,"
the"nature"of"the"work"itself"and"the"training"offered."The"following"quotes"elaborate:"“It"is"the"
!
47""
reputation"of"the"company"that"attracted"me"most"as"I’ve"checked"their"profile"in"the"internet”"(Worker"
13,"Machine"Operator"["Philippines);"and"“there"were"a"couple"of"jobs"I"actually"applied"for,"so"there"was"
a"couple"of"other"opportunities"at"the"time,"but"I"chose"this"one"at"the"end"because"the"type"of"work"
interested"me"more”"(Worker"18,"Specialist"Consultant"["UK);"and"“they"do"what"I"do,"they"were"young,"
they"were"building"things,"they"were"you"know,"in"same"line"of"work"and"they"did"a"lot"of"work”"
(Worker"17,"Project"Management"["US);"and"“[what"attracted"me"was]"mainly"their"training"and"their"
understanding"that"you"don’t"have"much"field"experience,"like"when"you"come"to"certain"jobs,"and"they"
are"ready"to"teach"you"and"provide"you"with"training”"(Worker"6,"Maintenance"Officer"["India)."
"For"another"worker,"the"attraction"was"simply"that"the"firm"he"worked"for"was"willing"to"recognise"his"
skills."He"said:"“we"hit"a"lot"of"brick"walls"because"people"didn’t"know"who"we"were,"they"couldn’t"or"
didn’t"want"to"verify"our"experience"or"give"us"a"shot”"(Worker"4,"Engineer"["Ireland)."
"Many"workers"claimed"that"the"main"attraction"was"simply"the"opportunity"to"work"in"Australia."All"
were"interested"in"permanent"residency,"but"their"reasons"for"being"in"Australia"varied."One"worker"
explained:"“the"reason"why"we"are"here"is"not"a"professional"reason."Also"financially"speaking"I"have"a"
better"life"in"Brazil."It"is"more"the"lifestyle"change"and"for"the"future,"I"believe"this"country"is"better”"
(Worker"3,"Engineer"["Brazil)."Another"said:"“what"triggers"me"most"[about"taking"up"this"job"in"
Australia]"is"that"I"have"a"chance"to"live"here"and"bring"my"family"here”"(Worker"13,"Machine"Operator"[
Philippines)."
"As"the"above"indicates,"the"majority"of"workers"were"opportunistic"in"terms"of"the"job"they"took,"
because"it"allowed"them"to"work"in"Australia"and"suited"their"skills."The"size"of"the"firm"played"no"
apparent"role"in"their"decision.""
"""
5.2.3!Theme!3:!Employer!Assistance!for!Transition!"As"indicated"earlier,"employers"assisted"workers"with"a"range"of"issues"upon"their"arrival,"including"
finding"a"rental"property,"acting"as"referee"for"rental"applications,"temporary"accommodation,"finding"
schools"for"their"children,"transportation"between"home"and"work,"and"administrative"matters"such"as"
obtaining"tax"file"numbers"and"opening"bank"accounts."Levels"of"assistance"differed,"as"evidenced"by"the"
quotes"below."These"differences"were"particularly"noticeable"between"workers"who"were"recruited"
onshore"and"those"who"were"recruited"offshore."The"following"workers"were"all"recruited"offshore:"
""When"we"first"came"to"Australia"our"company"helps"us"looking"for"our"accommodation."They"
also"send"us"back"and"forth"from"workplace"to"our"house"until"they"provide"us"our"car,"which"we"
!
48""
pay"through"salary"deduction."They"also"help"us"processing"our"bank"account"and"help"us"get"our"
tax"file"number"(Worker"13,"Machine"Operator"["Philippines)."
"They"paid"for"my"visa,"they"paid"for"my"relocation,"but"I"did"not"ask"them"for"repatriation"which"
means"as"part"of"the"457"they"would"have"to"find"me"a"home."Now"all"my"stuff"is"all"here,"so"at"
the"moment"it"is"at"my"cost"to"move,"which"I"did"not"recognise,"when"I"signed"my"contract."The"
first"week"they"were"very"kind,"I"was"put"up"at"one"of"the"owner’s"houses"who"hired"me"and"he"
was"lovely,"they"took"me"out"for"dinner,"I"stayed"in"Sydney"for"a"week."However,"once"I"got"to"
work"a"week"later"I"was"pretty"much"cut"loose"(Worker"17,"Project"Manager"["US)."
"We"were"given"three"weeks"accommodation"and"help"to"rent"a"property"after"that"period."From"
the"moment"I"got"here,"we"were"introduced"to"people"and"I"was"taken"along"to"training"sessions"
in"sports"and"coerced"into"joining"various"sporting"teams."The"social"side"of"things"is"very"
important"for"us"(Worker"12,"Mechanical"Fitter"["UK)."
"In"some"cases,"workers"were"permitted"to"spend"their"relocation"allowances"any"way"they"chose:""
"I"was"given"a"relocation"allowance."I"was"given"a"set"figure"to"utilise"how"and"when"I"saw"fit."If"I"
wanted"to"spend"it"on"first"class"flights"and"sort"my"own"furniture"arrangements"out"that"was"
fine,"or"use"that"for"everything"then"that"was"fine."There"was"some"assistance"from"the"Perth"
office"as"to"possible"locations"where"to"live"and"a"little"bit"of"background"information"on"what"to"
expect"when"I"landed"(Worker"18,"Specialist"Consultant"["UK)."
"Some"employers"of"Filipino"workers"provided"assistance"with"English"language"training"in"order"for"
them"to"operate"effectively"in"the"workplace."One"employee"explained:"“they"pay"the"person"then"I"pay"
them:"I"owe"them”"(Worker"10,"Pipe"Fitter"["Philippines).""
"Two"workers"in"our"sample"transferred"from"student"visas"to"457s"and"one"moved"from"a"short[term"
working"visa"to"a"457."These"workers"were"recruited"onshore"and"so"little"assistance"was"provided:"
“the"only"help"I"got"was"from"this"agent"but"I"was"paying"them”"(Worker"2,"Engineer"["Spain)."And:"“we"
didn’t"have"any"support"to"find"our"place,"found"my"own"rental"apartment”"(Worker"3,"Engineer"["
Brazil)."
"These"comments"suggest"that"there"is"a"difference"in"the"level"of"assistance"provided"by"employers"to"
workers"recruited"onshore"and"offshore."Evidently"those"who"are"recruited"onshore"are"treated"as"
domestic"workers"and"therefore"do"not"receive"any"special"assistance.""
5.2.4!Theme!4:!Experience!of!Work!"
!
49""
The"expectations"of"workers"on"457"visas"were"naturally"influenced"by"the"social"and"cultural"
environments"in"their"home"countries."Whiles"these"differences"had"the"potential"to"cause"
misunderstandings"between"the"workers"and"managers,"none"of"the"20"workers"interviewed"
mentioned"any"experiences"of"direct"discrimination,"although"other"issues,"such"as"poor"
communication,"had"arisen."Language"differences"underpinned"communication"difficulties,"evident"
from"these"quotes:"“sometimes"because"of"the"language"barrier"it"is"normal"that"you"don’t"get"
everything"or"you"are"like"a"little"bit"lost,"but"it"is"part"of"the"being"a"new"immigrant”"(Worker"1,"
Engineer"["Spain)."
"There"was"a"bit"of,"how"should"I"say,"language"barrier"for"a"while,"although"we"both"speak"
English,"the"terms"that"I"would"use,"sometimes"would"be"mistaken"or"misread"or"the"phrases"
that"I"would"use"would"mean"something"completely"and"totally"different"than"they"do"here"
(Worker"4,"Engineer"["Ireland)."
"
The"most"important"thing"to"try"in"working"with"the"Australians"is"communication,"because"if"
you"have"no"communication"with"them"it"is"very"hard"(Worker"5,"Engineer"["Philippines)."
"Cultural"differences"were"recognised"as"influencing"people’s"behaviour"and"expectations"of"others"in"
the"workplace:"
""The"difference"between"the"Aussies"and"Americans…"one"of"the"differences"is"that"you"guys"will"
wait"until"somebody"asks"for"help,"you"don’t"offer"it"automatically."Americans"will"lay"
everything"out"for"you,"so"you"are"completely"taken"care"of"until"you"say"enough"is"enough."It"is"
completely"different"and"we"are"not"actually"used"to"that…."It"has"been"a"very"difficult"learning"
curve."I"underestimated"what"the"learning"curve"was"going"to"be,"because"we"do"business"
differently,"and"we"are"culturally"different"and"you"know"it"is"that"you"don’t"think"you"are"
different"and"that"is"the"hard"thing"to"understand"that"there"are"differences,"very"subtle"but"
significant"differences"(Worker"17,"Project"Manager"["US).""
"The"informality"of"relationships"at"work"was"noted"by"some"workers:"
""It"is"a"big"difference"from"my"country"because"it"is"more"equal"[in"Australia]."In"the"Philippines,"
if"you"are"a"supervisor,"you"are"higher,"not"a"normal"worker;"here"it"is"all"the"same,"even"your"
boss"you"call"him"by"his"first"name,"not"‘sir’"(Worker"10,"Pipe"Fitter"["Philippines)."
"I"thought"people"would"be"less"natural,"I"thought"they"were"probably"follow"too"many"rules,"give"
an"appearance"all"the"time,"act"all"the"time"like"serious"people,"you"know"what"I"mean?"But"that"
is"not"what"I"found."They"are"very"natural"friendly"and"charming"people,"even"way"better"than"I"
!
50""
thought."I"don’t"think"I"was"treated"any"different"in"the"company,"just"for"being"Spanish"(Worker"
2,"Engineer"["Spain)."
"Generally"there"was"a"perception"that"diversity"within"the"firm"did"not"cause"any"problems."A"
consultant"from"India"said,"“I"get"a"lot"of"respect"from"my"subordinates"and"peers"and"everybody"is"
treated"equally"regardless"of"any"background,"our"company"has"good"cultural"background,"for"people"
from"different"countries”"(Worker"17,"Specialist"Consultant"["India)."The"Brazilian"engineer"explained,"“I"
felt"very"welcomed,"very"welcomed,"the"relationship,"the"professional"relationship"in"the"company"was"
really"good,"really"good"relationship,"really"good"environment,"and"yes"good"support"from"the"team,"and"
I"didn’t"feel"anything"else”"(Worker"3,"Engineer"[Brazil)."A"fitter"from"the"UK"said:"“we"have"got"quite"a"
mixed"background"within"the"company,"a"lot"of"permanent"residents,"a"lot"of"citizens,"and"there"is"no"
animosity"or"different"feelings"towards"anyone"that"is"on"a"457"visa"at"all”"(Worker"18,"Specialist"
Consultant"["UK)."And"another:"“I"work"alongside"guys"who"are"on"457s,"it"is"quite"a"diverse"work"force"
that"we’ve"got,"and"I’ve"not"witnessed"any"animosity”"(Worker"12,"Mechanical"Fitter"["UK)."
"One"worker"stated"that"there"were"no"issues"at"work"with"a"diverse"workforce,"but"in"the"community,"
questions"were"asked"about"his"employment"on"a"457"visa:"
""We"are"working"together"as"a"team"here"even"though"I"am"from"Asia,"others"are"from"Africa"or"
New"Zealand."Here"in"this"company"we"are"not"experiencing"that"[discrimination]."But"at"other"
times"yes,"especially"when"we"look"around"and"then"they"say"‘hey"mate"are"you"an"Australian"
citizen?’"‘No,"I"am"not"permanent’."Maybe"they"are"upset"because"of"that,"because"they"think"we"
are"taking"their"job?"(Worker"8,"Boilermaker"["Philippines).""
"Generally"workers"reported"positive"experiences"of"work."Some"differences"were"felt"due"to"language"or"
cultural"misunderstandings,"but"no"direct"discrimination"was"evident"in"the"workplace"as"a"result"of"
their"employment"on"a"457"visa.""
5.2.5!Theme!5:!Concerns!about!Being!a!457!Visa!Worker!"As"the"above"quote"indicates,"workers’"concerns"were"related"to"matters"external"to"the"firm,"and"not"to"
their"experiences"of"working"in"the"firm."The"cost"of"living"in"WA"was"raised"as"an"issue,"as"were"
questions"about"whether"they"had"been"given"a"realistic"preview"of"the"job"and"the"temporary"nature"of"
the"457"visa"itself.""
"One"worker"said"the"following"about"the"cost"of"living:"
""I"would"start"by"saying"how"expensive"Australia"is"starting"off."It"costs"an"absolute"bomb"to"just"
get"established"and"settle"in,"you"know"it"is"extremely"expensive,"the"rent,"the"school"stuff,"oh"
!
51""
my"God,"if"I"had"known"that"in"advance"I"would…"to"a"degree"we"might"have"changed"our"mind"
(Worker"9,"Boilermaker"["Ireland).""
"Workers"expressed"concern"over"whether"they"had"a"realistic"assessment"of"working"in"Australia"
before"they"took"up"their"jobs:"“we"were"told"that"we"would"get"a"lot"more"hours"work"than"I"am"
getting”"(Worker"9,"Boilermaker"["Ireland)."And:""
"The"number"of"hours"people"work"here,"even"when"they"say"they"do"extra"hours"it"is"nothing"
compared"with"what"we"do"we"do"in"Spain,"in"Spain"you"are"supposed"to"work"from"08:00"to"
5:30"but"nobody"goes"home"at"5:30"any"day."Here"the"organisation"is"better,"and"I"think"we"work"
more"(Worker"2,"Engineer"["Spain)."
"Some"workers"confessed"to"not"having"a"realistic"understanding"of"working"life"in"Australia:"
""My"expectation"was"to"have"a"dynamic"approach"to"work,"and"I"was"expecting"to"have"a"little"bit"
more"than"it"is,"I"think"it"is"a"little"bit"slower"than"I"thought,"but"it"is"just"different"approach,"
different"culture,"different"way"of"work,"I"think"my"background"is"a"bit"too"much"in"a"rush,"and"it"
doesn’t"happen"here,"so"and"at"the"same"time,"quality"of"work"I"think"here"it"is"a"better"quality"of"
work,"better"life"balance,"so"I"am"quite"happy"with"this"Aussie"style"(Worker"3,"Engineer"["
Brazil)."
"The"narrative"around"skills"shortages"in"the"resources"sector"was"viewed"as"hype."The"worker"who"
applied"for"hundreds"of"jobs,"those"whose"skills"weren’t"recognised"and"this"worker"below,"who"had"
trouble"finding"a"job"despite"being"skilled,"are"indicative"of"the"difference"between"the"rhetoric"and"
reality"of"the"skills"shortage:"
""I"thought"it"was"going"to"be"easier"to"find"a"job"as"an"engineer."Because"from"outside"you"get"the"
feeling"that"engineers"are"required"here,"you"get"the"feeling"that"everybody"needs"engineer"
because"there"are"no"qualified"people"here,"so"you"think"you"are"going"to"come"here"and"because"
of"being"an"engineer"you"are"going"to"get"a"job"straight"away."And"it"was"not"that"easy,"especially"
from"my"point"of"view"(Worker"2,"Engineer"["Spain)."
"
5.2.6!Theme!6:!Family!Support!"457"visa"workers"who"travelled"to"Australia"with"their"families"reported"that"their"settling"in"impacted"
on"their"experiences."Employers"were"aware"that"family"issues"affected"workers"and"that"recognition"of"
spouses’"skills"could"be"problematic."At"the"time"of"this"study"only"four"spouses"were"working;"two"of"
them"in"part[time"roles."
!
52""
"She"is"working"at"the"age"care"but"she"is"not"a"full"time"at"the"moment."Actually"she"is"a"
registered"mid[wife"in"the"Philippines,"but"because"it"is"not"recognized,"if"she"wants"to"do"the"
mid[wife"thing,"then"she"has"to"go"back"to"university"(Worker"8,"Boilermaker"["Philippines)."
"The"qualification"you"need"is"higher,"there"is"only"so"much"work"in"this"area"for"somebody"with"
those"qualifications,"so"she"had"to"sacrifice"and"choose"part[time"work"as"opposed"to"what"our"
plan"was,"with"me"working"12"hour"days,"most"weeks,"and"her"working"full"time"as"well"
(Worker"9,"Boilermaker"["Ireland)."
"Workers"recommended"that"further"support"and"information"be"provided"to"them"and"their"families,"
but"were"unable"to"specify"who"should"provide"that"support."For"example,"one"worker"said:"
""Without"a"car"my"wife"had"to"walk"the"length"of"the"road,"and"went"to"the"local"volunteer"centre"
and"made"herself"known,"telling"them"we"are"new"in"town,"what’s"what,"what"can"we"do,"and"I"
have"to"say"in"all"fairness"you"know"anybody"she"approached"was"very"forthcoming"with"her,"
but"we"are"very"aware"that"if"she"hadn’t"put"herself"forward"nobody"was"going"to"come"
knocking"to"my"door."If"there"was"some"sort"of"booklet"or"forum"or"something,"maybe"the"
company"should"put"something"like"that"together"(Worker"12,"Boilermaker"["Ireland)."
"Another"worker"was"unaware"of"the"reciprocal"health"rights"between"Australia"and"Ireland."He"said:"
""It"would"have"been"nice"to"have"help"with"like"the"doctors"and"stuff,"it"was"only"after"a"while"we"
realised"that"our"passports"are"actually"the"best"thing,"showing"your"passports,"because"there"
are"reciprocal"agreements"with"Ireland"and"Australia"that"gives"you"free"health"care."We"found"
that"through"the"word"of"mouth"though,"no"body"actually"ever"helped"us"or"told"us"anything."I"
don’t"know"whether"there"should"be"a"support"group,"or"even"just"a"pamphlet"or"something"to"
inform"you,"of"what"you"are"entitled"to"and"what"you"are"not"entitled"to,"just"to"clarify"things"
(Worker"4,"Engineer"["Ireland)."
"Workers"from"the"Philippines"used"their"community"links"as"sources"of"information."They"explained:"“if"
you"are"a"Filipino"then"you"have"a"language"like,"‘hey"you,"Filipino"yea,"yea,"you"know"where"is"the"
church?’"‘Where"is"the"nearest"church"from"the"house?’”"(Worker"11,"Pipe"Fitter"["Philippines)."Another"
said:"“the"other"workers"in"the"house"help"each"other"to"settle"in."They"helped"find"where"the"Church"
was"where"the"shop"was"and"all"that”"(Worker"10,"Pipe"Fitter"["Philippines)."And:"“especially"during"the"
weekend"if"we"go"to"the"shopping"centre"so"we"meet"a"Filipino"we"get"talking”"(Worker"8,"Boilermaker"["
Philippines)."
"
!
53""
One"worker"had"a"different"point"of"view"and"suggested"people"needed"to"work"out"for"themselves"what"
support"was"available,"without"relying"on"others."She"said:"“I"worked"it"out"myself."I"mean"sure"I"needed"
some"services,"but"I"just"asked"the"questions,"in"our"line"of"work,"if"you"don’t"know"how"to"ask"the"
questions,"then"there"is"something"wrong"with"you”"(Worker"17,"Project"Manager"["US)."
5.2.7!Theme!7:!The!Future!and!Permanent!Residency!in!Australia!!"The"lack"of"job"security"and"tenuous"nature"of"457"visas"was"of"critical"concern"for"some"of"the"workers"
interviewed"and"affected"their"ability"to"make"future"plans."At"the"time"of"the"interviews,"workers"had"
28"days"to"find"a"new"job"or"leave"the"country"in"the"event"they"lost"their"job."This"has"since"been"
extended"to"90"days."The"concerns"of"temporary"migrants"are"summarised"in"the"following"quote:"
""I"have"a"car"loan"in"Australia,"I"have"a"car"here,"I"have"a"rent,"a"lease"here,"I"have"all"my"
belongings"here."So"if"I"were"to"be"made"redundant"or"my"job"would"go"away,"I"have"28"days"to"
get"out"of"the"country,"which"means"I"have"to"sell"everything,"or"leave"and"ruin"my"credit"here."
Now"I"could"swap"my"457"to"another"employer,"but"right"now"we"are"in"a"down"turn,"a"lot"of"
people"are"on"the"street,"looking"for"jobs,"it"is"not"going"to"be"easy"to"replace"my"job"in"28"days,"
if"at"all"(Worker"17,"Project"Manager"["US)."
"Workers"were"asked"if"they"would"recommend"employment"on"a"457"visa"to"their"friends."One"worker,"
who"was"not"in"favour,"explained:"
""I"don’t"know."I"don’t"think"I"would"have"so"many"friends"that"would"accept"this"situation:"change"
their"life,"come"here,"with"unsure"situation,"with"no"reliable"place"to"stay,"and"if"you"lost"your"job"
for"any"reason,"you"have"28"days"to"leave"the"country."It"is"totally"unsafe"and"unreliable"
situation."I"think"most"of"my"friends"who"have"a"good"life,"who"are"good"professionals"in"their"
own"career,"would"not"take"this"challenge,"would"not"take"this"risk,"it"is"a"big"risk"(Worker"3,"
Engineer"["Brazil)."
This"contrasted"with"the"assessment"of"a"worker"from"Ireland,"who"stated:"
"Yes,"I"have"just"recommended"it"to"friends"of"ours"from"Ireland."They"are"from"Northern"Ireland,"
they"came"on"a"working"holiday"visa,"they"did"three"months"regional,"they"are"on"their"second"
working"holiday"visa,"which"is"running"out"in"three"months’"time,"and"they"are"in"the"process"of"
applying"for"a"457"at"the"moment"(Worker"4,"Engineer"["Ireland)."
"For"three"Filipino"workers"there"was"no"hesitation"recommending"this"pathway"to"their"friends:"“what"
they"have"done"for"me,"they"helped"me"to"bring"my"family"here,"I"want"to"tell"to"my"neighbour,"my"
friends,"if"they"want"that,"to"work"here"in"Australia”"(Worker"8,"Boilermaker"["Philippines)."And:"“yes,"I"
!
54""
will"recommend"the"457"visa"to"my"friends"and"family"back"home"because"I"believe"this"will"give"them"a"
better"opportunity"in"life."I"believe"through"this"opportunity"they"were"able"to"support"their"family"back"
home"just"like"what"I"did”"(Worker"13,"Machine"Operator"["Philippines)."And"another:"“the"457"is"a"legal"
and"the"fast"and"easy"way"to"enter"and"work"here"in"Australia,"so"yes"I"may"recommend"it"to"friends”"
(Worker"14,"Machine"Operator"["Philippines)."
"Every"worker"interviewed"said"they"had"applied"for"work"on"a"457"visa"as"a"mechanism"to"permanent"
residency"in"Australia:"
""We"would"like"to"apply"for"residency,"but"after"that"I"think"we"will"go"home,"we"still"have"our"
home,"at"home,"our"house"is"being"rented"at"the"moment,"but"we"don’t"want"to"stay"in"Australia"
forever,"but"for"the"children’s"sake"we"would"like"to"apply"for"residency,"so"that"children"can"
come"and"go"(Worker"9,"Boilermaker"["Ireland)."
"It"is"the"strong"wish"to"live"here,"I"love"the"country"I"love"the"people,"I"love"the"way"they"
approach"the"life,"the"balance"the"work"and"pretty"much"safe"place,"beautiful"country"(Worker"3,"
Engineer"["Brazil)."
"
I"am"willing"to"stay"here"in"Australia"and"make"it"my"second"home."And"I"am"hoping"my"
employer"would"help"me"in"sponsoring"me"to"be"a"permanent"resident"here."Once"my"visa"got"
expired"I"was"determined"to"live"here"because"the"place"are"peaceful"and"the"people"are"very"
friendly"and"most"of"all"I"can"bring"my"family"here"while"I’m"working"and"we"can"live"together"
and"give"them"a"better"future"(Worker"13,"Machine"Operator"["Philippines)."
"Some"firms"provided"workers"with"support"to"seek"permanent"residency."One"employer"said"their"firm"
had"supported"28"workers"over"the"past"4"years"with"their"applications"to"become"permanent"
residents."This"worker"had"the"support"of"the"firm,"but"no"financial"support:"
"The"company"has"actually"nominated"me"for"permanent"residency"and"there"is"a"six"to"12"months"approval"phase"on"the"nomination"itself;"however"you"can"only"seek"it"until"you"are"50,"
and"I"am"50"in"December."The"company"has"nominated"me"but"they"will"not"pay"for"my"
permanent"residency"application"fee,"which"is"$3,060"dollars."It"is"a"risk"because"they"can"
review"my"application"and"throw"it"out,"and"my"$3,000"dollars"is"gone"(Worker"17,"Project"
Manager"["US)."
"
The"political"debate"that"surrounded"457"visas"and"immigration"leading"up"to"and"during"the"2013"
election"campaign,"made"some"workers"uncomfortable"about"being"in"Australia."One"worker"explained:""
"
!
55""
I"feel"resentment"now,"all"of"a"sudden"now,"where"I"have"never"felt"any"weirdness"about"being"
on"a"457"before."All"of"a"sudden"it"is"in"the"paper"every"day,"and"you"wonder"‘are"people"looking"
at"me"like"I"took"somebody’s"job?’"You"know,"that"makes"me"feel,"because"I"was"hired"here"
because"of"my"experience,"because"of"what"I"had"to"offer,"and"all"of"a"sudden"I"feel"like"I"am"to"
think"that"you"are"doing"me"a"favour"(Worker"17,"Project"Manager"["US)."
5.2.8!Summary!of!Employee!Issues!"Smaller"firms"frequently"experience"difficulties"recruiting"skilled"workers,"as"was"the"case"for"the"
employers"in"this"study."The"literature"suggests"the"reason"relates"in"part"to"a"perception"that"smaller"
firms"are"unable"to"offer"career"paths"and"are"seen"as"insecure"places"of"employment;"as"a"result,"
potential"workers"are"not"attracted"to"them."However,"there"was"no"evidence"of"this"amongst"the"
smaller"firms"interviewed"for"this"study,"neither"was"there"any"evidence"to"suggest"firm"size"played"a"
role"in"workers’"decisions"about"employment."They"were"attracted"to"the"firm"for"other"reasons:"
because"it"was"in"Australia,"the"work"fitted"their"skills,"their"skills"were"being"recognised,"and"there"was"
the"offer"of"a"visa."All"these"workers"came"to"Australia"with"the"intention"of"using"the"457"visa"as"a"
stepping"stone"to"permanent"residence.""
"The"process"was"longer"for"six"workers"who"had"transferred"from"a"different"visa"to"a"457."While"
permanent"residence"was"a"goal"that"gave"workers"options"and"the"flexibility"to"move"easily"between"
countries,"not"all"wanted"to"stay"in"Australia."Workers"found"the"cost"of"living"in"WA"high"compared"to"
other"countries,"and"the"distance"from"family"and"friends"was"problematic.""
6.!STUDY!LIMITATIONS! The"findings"of"this"exploratory"study"cannot"be"generalised"for"all"firms"or"all"457"visa"workers."The"
aim"of"this"study"was"to"explore"the"reasons"why"smaller"firms"in"the"resources"sector"recruited"
temporary"skilled"migrants"on"457"visas."It"is"unclear"what"proportion"of"457"visa"workers"is"employed"
in"smaller"firms"and"so"the"study"was"exploratory.""
"
Semi[structured"interviews"were"conducted"with"employers"and"employees"to"gather"data."The"number"
of"participants"in"the"study"was"low:"10"managers"and"20"employees"across"14"smaller"firms."In"eight"of"
these"firms"the"manager"and"one"to"three"employees"on"457"visas"were"interviewed."Another"two"
managers"in"different"firms"and"five"457"visa"workers"were"interviewed,"bringing"the"totals"to"10"and"
20"respectively.""""
"
Small"samples"are"common"in"smaller"firm"research."Smaller"firms,"despite"being"prolific,"can"
paradoxically"be"hidden"from"view"and"difficult"to"access."Key"personnel"in"smaller"firms"are"often"too"
!
56""
busy"managing"the"business"to"respond"to"requests"to"participate"in"research."Considerable"efforts"were"
expended"in"gaining"the"consent"of"10"managers"and"20"workers"to"participate,"partly"achieved"by"
using"personal"networks"and"chain"referrals.""
""While"the"research"was"underway,"conditions"in"the"resources"sector"changed"and"there"was"much"
negative"media"commentary"about"“the"end"of"the"boom”."The"managers"we"spoke"to"were"mindful"of"
these"changing"conditions"and"the"potential"these"had"to"trigger"a"reduction"of"temporary"migrant"
workers."In"addition,"457"visas"were"caught"up"in"the"larger"political"debate"about"immigration"that"was"
ongoing"when"the"research"was"being"conducted."This"debate"could"have"affected"the"readiness"of"
individuals"to"participate"in"the"study."There"was"certainly"some"evidence"that"this"debate"impacted"on"
the"way"457"visa"workers"felt"about"their"experiences"of"working"in"Australia,"and"some"sites"where"
employers"sent"457"visa"workers"to"work.""
"Finally,"this"study"was"limited"to"smaller"firms"operating"in"the"WA"resources"sector."In"this"sector,"
firms"range"from"huge"multi[nationals"to"owner[managed"or"small"partnerships."The"firms"that"
participated"in"this"study"were"larger"than"the"“typical”"Australian"small"firm"but"they"were"smaller"in"
terms"of"those"operating"in"the"resources"sector."Because"the"firms"employed"between"20"and"400"
people,"they"could"be"expected"to"have"layers"of"management"and"more"formalized"HRM"practices"than"
those"found"in"“typical”"smaller"firms."Yet"the"findings"were"of"similar"recruitment"and"selection"
practices"to"those"found"in"“typical”"smaller"firms,"particularly"when"the"potential"employee"was"
recruited"onshore."Like"“typical”"smaller"firms,"the"key"focus"of"recruitment"and"selection"practices"in"
all"these"firms"was"“fit”"and"this"was"more"than"the"457"visa"worker"simply"having"the"skills"needed"in"
the"business.""
7.!CONCLUSION!AND!IMPLICATIONS!!"
Smaller"firms"are"characterised"by"a"lack"of"formalised"HRM"practices,"and"recruitment"and"selection"
processes"are"often"informal"and"ad"hoc."Research"suggests"that"in"the"smallest"of"small"firms,"
recruitment"will"not"be"attempted"until"there"is"a"known"candidate"(Carroll"et"al.,"1999)."The"need"for"
workers"who"“fit”"is"an"important"hallmark"of"recruitment"and"selection"practices"in"smaller"firms"
where"close"working"relationships"exist"due"to"proximity,"and"choosing"the"“wrong”"worker"can"have"a"
significant"impact"on"other"staff"and"the"business."
"A"frequently"heard"complaint"from"smaller"firms"is"that"they"have"difficulty"finding"the"right"staff."In"
WA,"enormous"capital"injection"into"resource"sector"projects"has"resulted"in"shortages"of"skilled"labour"
and"many"firms,"regardless"of"size,"have"had"to"address"the"consequences."The"“war"for"talent”"has"
inflated"wages,"and"the"need"to"compensate"fly[in[fly[out"workers"on"regional"and"remote"work"sites,"
!
57""
has"raised"workers’"expectations"around"pay"and"conditions"of"employment."Resource[constrained"
smaller"firms"can"find"it"difficult"to"compete"in"this"environment,"and"there"was"evidence"of"this"being"
the"case"for"the"smaller"firms"that"participated"in"this"study.""
"In"the"resources"sector,"457"visas"are"used"to"employ"temporary"skilled"migrants"to"fill"workforce"gaps."
These"visas"are"valid"for"up"to"four"years"and"provide"the"holder"with"an"option"to"apply"for"permanent"
residence,"however,"they"are"restricted"to"workers"who"are"in"an"occupation"on"the"federal"
Government’s"list"of"occupations"in"demand."Less"than"1%"of"workers"in"the"Australian"workforce"are"
employed"on"457"visas"and"in"WA,"the"majority"of"457"visa"workers"are"employed"in"the"resources"
sector."Employers"have"to"comply"with"numerous"requirements"and"processes"before"they"can"use"this"
visa"to"employ"workers"regardless"of"whether"the"employee"is"recruited"offshore"or"onshore."
"The"questions"this"exploratory"study"sought"to"answer"were:"why"and"how"do"smaller"firms"employ"
workers"on"457"visas?"What"were"the"drivers"for"smaller"firms"to"recruit"temporary"migrant"workers"
who"needed"to"be"sponsored"on"457"visas?"What"experiences"did"smaller"firms"have"of"457"visa"
workers?"What"experiences"did"457"visa"workers"have"of"their"employment"in"smaller"firms?""
"An"analysis"of"the"semi[structured"interviews"suggests"that"the"primary"reason"for"smaller"firms"to"
recruit"temporary"migrant"workers"who"needed"to"be"sponsored"on"457"visas,"was"a"lack"of"the"right"
skills"and"attributes"in"the"domestic"workforce."“Fit”"was"an"important"criterion"in"the"final"selection,"
and"for"some"managers,"their"negative"experiences"with"domestic"workers"(inflated"pay"expectations,"
lack"of"commitment,"and"poor"“attitude”)"drove"them"to"widen"their"search"for"workers"who"would"“fit”."
The"option"of"employing"temporary"migrant"workers"was"further"reinforced"by"their"positive"
experiences"with"457"visa"workers"(hard"workers,"team"players)."Like"Khoo"et"al."(2007b),"this"study"
found"the"“perceived"advantages"of"hiring"migrants”"could"broadly"be"described"as"the"key"reason"why"
these"smaller"firms"employed"457"visa"workers.""
"A"variety"of"methods"were"used"to"recruit"and"select"workers"["these"differed"depending"on"whether"the"
worker"was"based"on["or"offshore."They"included"advertising"in"Australia"and"overseas,"using"the"
services"of"recruitment"agencies,"referrals"from"their"employees"or"networks,"and"direct"approaches"
from"potential"employees,"either"in"the"form"of"“walk[ins”"or"unsolicited"job"applications."Selection"
processes"involved"job"try[outs,"interviews"and"skills"tests."Throughout,"“fit”"was"the"key"criterion"that"
underpinned"the"final"selection"of"457"visa"workers"as"is"the"case"for"smaller"firm"employees"more"
generally.""
"Firms"incurred"substantial"costs"associated"with"not"only"the"visa"process"itself,"but"also"relocation"and"
ongoing"socialisation"and"training"costs."The"amount"varied"and"depended"to"some"extent"on"whether"
!
58""
the"worker"was"already"in"the"country"at"the"time"of"recruitment."Employers"regarded"these"expenses"
as"an"investment"in"their"firm’s"future,"because"the"additional"skilled"workers"allowed"them"to"tender"
for"previously"inaccessible"contracts."These"employers"attributed"firm"survival"and"growth"to"their"
ability"to"employ"workers"on"a"457"visa."
"Employers"were"aware"of"the"tenuousness"of"457"visas:"employees"could"leave"the"firm"for"a"better"job"
offer"or"because"they"or"their"family"were"homesick."Employers"benefited"from"the"social"isolation"of"
457"visa"workers"because"their"key"attachment"was"to"the"firm."Various"HRM"practices"were"used"
around"relocation,"socialisation,"training"and"performance"management,"to"reinforce"the"attachment"of"
workers"to"the"firm."The"support"provided"to"families"was"important"for"workers,"and"whether"or"not"
their"spouse"and/or"family"settled"was"critical"to"workers’"peace"of"mind."The"WA"government’s"plan"to"
charge"$4000"in"public"school"fees"for"the"first"child"of"457"workers"and"$2000"for"subsequent"children,"
is"likely"to"be"problematic:"employers"will"need"to"assess"whether"they"can"afford"to"assist"families"with"
this"cost;"and"workers,"who"are"already"hit"by"a"high"cost"of"living,"will"need"to"assess"whether"they"can"
afford"to"move"to"WA"with"their"family.""
"This"study"found"formal"and"informal"HRM"practices"were"used"to"bolster"worker"loyalty"and"
commitment"to"the"firm."These"practices"were"important"as"most"workers"did"not"target"any"particular"
firm"for"employment"["they"were"primarily"interested"in"a"job"in"Australia."Without"such"practices"the"
inherent"fragility"of"the"relationship"would"be"exposed,"and"the"substantial"costs"associated"with"the"
recruitment"and"selection"of"457"visa"workers,"particularly"those"recruited"offshore"firms,"would"not"be"
returned"as"a"competitive"advantage"for"the"firm."""
"
The"employment"of"migrant"workers"on"457"visas"has"been"caught"up"in"the"larger"political"debate"
about"immigration"and"there"have"been"accusations"of"employers"rorting"the"system"(Hall,"2013)."These"
interviews"did"not"reveal"this"to"be"the"case."Managers"connected"their"firm’s"survival"and"growth"to"
457"visa"workers"and"identified"that"the"ability"to"sponsor"temporary"migrant"labour"gave"their"firm"a"
short[term"competitive"advantage."But"not"without"costs"by"way"of"visa"processing"and"relocation"
expenses,"socialisation"and"additional"training."In"a"contracting"WA"economy,"employers"were"
conscious"of"the"potential"effects"on"their"business"and"ability"to"sustain"this"competitive"advantage."
"This"study"highlights"the"opportunity"for"future"research"to"examine"the"differences"between"457"visa"
workers;"the"practices"required"to"manage"all"these"different"workers;"and"the"differences"in"their"
commitment"to"the"firm."Industry"would"be"served"by"better"understanding"the"motivations"of"workers"
to"temporarily"migrate"to"Australia"for"work"and"whether"those"who"seek"a"better"life,"a"different"
lifestyle,"or"a"career"challenges"because"they"are"part"of"a"globally"mobile"workforce,"need"to"be"
!
59""
managed"differently."Such"an"understanding"would"help"firms"align"their"HRM"practices"with"the"needs"
of"their"workers’"and"in"so"doing,"enhance"their"opportunities"to"recruit"quality"candidates."
"Business"requirements"necessary"for"attracting"and"employing"temporary"skilled"migrant"labour"needs"
further"investigation,"including"a"cost[benefit"analysis"of"the"employment"of"457"visa"workers."This"
study"found"that"smaller"firms"gained"a"short[term"competitive"advantage"through"the"use"of"workers"
on"457"visas,"and"ways"of"turning"this"into"a"longer[term"advantage"could"be"explored."This"study"also"
highlighted"the"importance"of"“fit”"in"recruiting"and"selecting"457"visa"workers,"yet"“fit”"meant"more"
than"having"needed"professional"or"trade"skills."The"criteria"employers"use"to"determine"“fit”"and"how"
this"affects"recruitment"and"selection"practices"could"be"interesting"to"investigate"and"would"unlock"
insights"into"HRM"in"smaller"firms"more"generally.""
"The"information"found"in"this"exploratory"study"of"why"and"how"smaller"firms"use"457"visas"can"
underpin"future"research."This"is"invaluable"given"the"new"Prime"Minister,"Tony"Abbot,"has"already"
indicated"he"would"like"to"see"the"system"expand."Any"expansion"of"this"subclass"of"visa"or"changes"to"
the"system,"need"to"ensure"migrant"workers"are"not"pawns"of"government"and"all"firms"benefit."!
""""""""""""""""""""""""""
!
60""
8.!REFERENCES!"Arthur,"D."(1995)."Managing"human"resources"in"small"and"mid[sized"companies."American!Association!
of!Management."New"York."
Australian"Bureau"of"Statistics"(ABS)"(2012,"July)."Australian!labour!market!statistics."Available"online"at"
http://www.abs.gov.au/ausstats/[email protected]/mf/6105.0,"accessed"5"September"2013."
Australian"Bureau"of"Statistics"(ABS)"(2013a)."Australian!industry!by!subdivision!2011Y12.!Available"
online"at!http://www.abs.gov.au/AUSSTATS/[email protected]/DetailsPage/8155.02011[
12?OpenDocument,"accessed"3"July"2013.!
Australian"Bureau"of"Statistics"(ABS)"(2013b)."National!regional!profile:!Kwinana!(T)!(Local!Government!
Area)!–!Economy."Available"online"at"
http://www.abs.gov.au/AUSSTATS/[email protected]/Previousproducts/LGA54830Economy12005[
2009?opendocument&tabname=Summary&prodno=LGA54830&issue=2005[2009,"accessed"3"July"
2013."
Australian"Bureau"of"Statistics"(ABS),"(2001)"Small!business!in!Australia,"Cat."No."1321.0."Available"
online"at"http://www.abs.com.au,"accessed"4"July"2013.""
Australian"Public"Service"Commission"(APSC)"(2013)."Citizenship!in!the!Australian!public!service.!
Available"online"at,"http://www.apsc.gov.au/aps[employment[policy[and[
advice/engagement/citizenship[in[the[australian[public[service,"accessed"11"September"2013."
Australian"Workforce"and"Productivity"Agency"[AWPA]"(2012)"Resources!Sector"Skill!Needs!Report!
2012."Available"online"at"
http://www.awpa.gov.au/publications/documents/Resources%20Sector%20Skill%20Needs%20[
%202012.pdf,"accessed"19"September"2013."
Bahn,"S.!(2013)."Workers"on"457"visas:"Temporary"mechanism"to"address"genuine"skill"shortages"or"
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