Sarah Henderson (Corangamite, Liberal Party) Share this | Hansard source

Excuse me, I will take the interjection from the member opposite. In the media appearances that he made, Joseph agreed for us to call him by his first name only. He did not want his surname identified. Out of respect for Joseph, I have complied with his request and that is why I have not fully identified him. He is happy just to be called by his first name. Joseph worked at 7-Eleven and he was being paid correctly on the books, but, at the end of every pay week, he was being asked by his employer to repay an amount of money in cash. This so-called cashback equated to around a quarter of Joseph's wage. I took Joseph's case to the employment minister, Senator Michaelia Cash, and also to the Fair Work Ombudsman. Senator Michaelia Cash met with Joseph. Allan Fels also met with Joseph. As a result of the minister's intervention, along with the work of the Fair Work Ombudsman, that money was repaid to Joseph and justice was delivered. We are very pleased to see that action taken, but, of course, we also recognise that the law was simply not strong enough. This conduct was happening throughout many workplaces. I have to say, shame on 7-Eleven, which, despite the fact that a whole range of unlawful behaviours and conduct was unveiled a number of years ago, frankly did not take appropriate action to stamp down on this behaviour. We found more instances happening in Geelong just last year. The introduction of this bill is one of the Turnbull government's key election commitments to ensure workers are protected from exploitation by unscrupulous employers.

While I do recognise members opposite are going to support this bill as they say, I have to reflect on the fact that members opposite announced at the end of the 2016 election campaign a policy concerning worker exploitation which really failed to deal with the problem. It exempted small businesses from higher penalties, meaning that most 7-Eleven franchises would not have been caught by the changes that we are proposing and, of course, could continue to get away with this conduct. We do not think that is good enough.

I reflect also on the previous member's contribution when he spoke about the minimum wage. He may not quite appreciate it, but the minimum wage is, of course, set by the Fair Work Commission as part of an independent process. Our government is absolutely adamant that every single employee must be paid in compliance with the law. We are absolutely determined to see an end to exploitation, to workers being ripped off and to shonky deals. That is why we have also introduced into the parliament the Fair Work Amendment (Corrupting Benefits) Bill 2017.

This is a bill which deals with a real scam that has been happening in many large workplaces around Australia. Unions—particularly the Shoppies union—backed by Labor have been working hand in hand with large employers, entering into EBAs which in some cases have either reduced penalty payments to workers on weekends or stopped them altogether. There is a better-off test that is meant to apply if there are changes made to an award under an EBA, and what has been going on is some pretty shonky payments being made by some employers to some unions that have not been transparent. They have not been disclosed. The corrupting benefits bill is all about looking at these deals, shining a light on this sort of inappropriate behaviour and letting the unions' own members know what is going on so that they know the sorts of deals that are being done and whether they are being ripped off.

Perhaps the most infamous case that is discussed frequently in this parliament is the case where Clean Event workers were sold down the river when the Leader of the Opposition was the National Secretary of the Australian Workers Union. But we will not cop the way in which workers in this country have lost their penalty rates under these shonky deals backed by Labor and backed by unions like the Shoppies union. We are determined to stamp out this behaviour.

We are also determined to stamp out the sorts of exploitation we have seen under the 457 regime, and that is why we are absolutely determined to put Australians first when it comes to jobs in this country. Very proudly we have announced a policy again very much concerned with worker exploitation, very much concerned with putting Australians first. We will not be distributing an advertisement promoting our policy which has only white faces in the advertisement. I think that was a pretty regrettable decision made by the Labor Party. We are very focused on fairness and Australians being put first, and that is why we are abolishing the 457 visa scheme and replacing it with a new temporary skill shortage visa. Where genuine skill shortages exist, businesses of course will still be able to employ skilled foreign workers on a temporary basis, but we will not see the sort of escalation of 457 visas we saw when the Leader of the Opposition was the Minister for Employment under Labor and there was a massive increase of about 40,000 457 visas. That simply cannot be tolerated. All sorts of deals were being done where young men and women working at the likes of McDonald's were coming into this country on 457s under Labor agreements. Not only were workers being ripped off under this scheme; but Australian jobs were not being put first. We will not tolerate that.

It was with great pride that I went in to back Joseph, an employee of 7-Eleven, and I am incredibly proud of the way in which we are tackling exploitation of vulnerable workers and caring for vulnerable workers in the workplace. Any exploitation of workers in any workplace is simply unacceptable. There are very strong laws in place in this country, and we are determined to see them enacted. And where the laws are not tough enough, where employers are doing these sorts of deals, like demanding cashbacks, then we will take strong action.

I am also pleased that under this bill we have clarified the accessorial liability provisions to ensure franchisors who are complicit in underpayments will be responsible for rectifying them. This will apply where a franchisee or a subsidiary contravenes a payment related provision of the Fair Work Act and the franchisor or holding company should reasonably have been aware of the breach and could reasonably have taken action to prevent it. The bill provides an express prohibition of hindering, obstructing or providing false or misleading information to Fair Work inspectors who carry out investigations into compliance with the Fair Work Act. There will also be a strengthening of evidence-gathering powers for the Fair Work Ombudsman, similar to the powers held by ASIC and the ACCC, to ensure the regulator can gather evidence where proper records do not exist, and can also overcome the culture of fear that often prevents vulnerable workers coming forward. I commend the Minister for Employment, I commend the government for this very important reform, and I commend this bill to the House.

On indulgence, I would just say to the member for Hotham, who has brought her beautiful baby into the chamber, that this is lovely to see in this family friendly chamber. Your baby is absolutely beautiful, and congratulations again, Clare.

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