Industry prepares for impact of new 457 visa requirements
© Rosemary Ryan - hospitalitymagazine.com.au
The restaurant and catering industry in Australia could see a return to the level of skill shortages that was seriously affecting the industry just two years ago as a result of new visa requirements for overseas workers, says the industry.
John Hart, CEO of industry representative association Restaurant and Catering Australia, said the changes to the 457 visa that come into effect from today could be devastating for the industry just as business was showing signs of picking up.
Under the new arrangements foreign workers will have to be paid ‘market rates’. To determine the market rate employers are to use comparisons with Australians at their workplace or, if there are no local workers there, refer to collective agreements, awards, or other evidence such as remuneration surveys or earnings data.
Visas will not be granted where the market rate is below $45,220 threshold.
Hart said the new tightening of the scheme could threaten the important supply of overseas cooks in particular and leave the industry in a dire situation as it heads into the busy Christmas and holiday period.
“If the market rate is below that minimum then you can’t bring in that occupation…so essentially cooks may not be able to be brought into the country at all, he said.
“So that is obviously a problem for the number of cooks that we already bring into this country. There are about 4600 brought in every year—so if you take 4600 cooks out of the system then the impact is going to be huge, particularly given the fact that things are starting to ramp up again.”
“We are going to be back in a situation very quickly where we are back in the magnitude of skill shortages that we had only two years ago because not only have we had these sort of changes that take effect today but we have had other changes that have slowed down the number of cooks coming in. So we are not going to have any where near the numbers in the workforce that we estimate it will be.”
The latest changes come on the back of new English language requirements for the 457 visa program that mean foreign workers now need a higher level of English in order to get their temporary Australian working visa.
Comment on this post
France Kwan Tat
January 27, 2012 23:24:49
HI,
I am 62 years old and being in Australia nearly four years on visa 457. My visa will expire shortly. Do I still have to undergo a ILETS even if my current employer wishes to renew my visa 457 for another four years.
Thanks
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