Impact of GFC on worker demand & 457 visa
© by Paula Wallace — Amanda Greasley, advisor with Energy Resourcing, discusses how the global financial crisis has affected skilled migration to Australia
The past two years, recruitment and human capital management service Energy Resourcing, has seen many grass roots changes to the legislation of the 457 visa program.
The changes have been introduced by the governing body DIAC (Department of Immigration and Citizenship) to minimise exploitation of low income workers; particularly those working under ASCO Code 9 (cleaners, labourers, process workers); by tightening the application process and increasing the accountability and financial responsibility of employers and sponsors.
Luckily, with the combination of the high demand for and skills shortage of experienced Chemical, Civil, Electrical and Mechanical Engineers in Australia, and the requirement for particular project specific experience, especially LNG, the oil and gas Industry has not been as affected as other sectors by these changes.
One trend that has been developing over the past six to twelve months is companies are undertaking cost benefit analysis, comparing the monetary expenditure associated with employing 457 visa holders (medical insurance, visa processing costs, and relocation expenses) to the ‘cost’ of having or not having an expatriate in a particular role. A recent report released by DIAC showed that primary visa applications in June 2009 were 45 per cent lower than June 2008 and 40 per cent lower than September 2008 when the global financial crisis ‘hit’.
Companies are also looking at the cost of retaining 457 visa holders, whether this can be better spent on the upskilling and subsequent development of existing local talent. As such this year has seen an increase of 85 per cent (on 2007-08 figures) in permanent residency applications; indicating that many 457 visa holders did not feel they have job security as a temporary resident.
There is now an increase in the amount of information and supporting documentation required when lodging 457 visa applications; and with further legislative changes being introduced on September 14th employers and sponsors will have to provide additional supporting advice such as attestation letters and confirmation of medical cover.
Eighteen months ago Energy Resourcing experienced approval times of eight to twelve weeks duration; six months later the approval process dropped considerably to an average of three weeks; with one application even being approved overnight. More recently, DIAC have reduced the number of available Case Officers and in conjunction with a more stringent process there has been an increase in approval times of up to ten weeks.
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