New Parliamentary report urges government to introduce its own labour hire licensing scheme
Many temporary migrant workers in New South Wales have experienced or are at risk of experiencing modern slavery, according to a new parliamentary report, which urged the government to introduce its own labour hire licensing scheme among other measures to stamp out the practice in the state.
The Modern Slavery Committee released last week scathing findings on the conditions of temporary migrant workers in rural and regional New South Wales. It was sourced from extensive evidence from workers, unions, businesses, peak bodies, and community organisations.
"This inquiry has shown that too many temporary migrant workers have experienced or are at a serious risk of experiencing modern slavery in New South Wales," said Committee Chair Joe McGirr in the report.
"Action must be taken to end these risks and guarantee the human rights of these workers."
Modern slavery, according to the report, is a term that describes a range of exploitative practices including forced labour, slavery, servitude, debt bondage, human trafficking, deceptive recruiting, and the worst forms of child labour.
"There is broad consensus that modern slavery involves unlawful control over and manipulation of people, the undermining and deprivation of a victim's personal freedom, and experiences marked by coercion and deception," the report added.
Modern slavery in NSW
In New South Wales, the report heard evidence that temporary migrant workers in NSW find themselves trapped in unsafe and exploitative working environments due to the restrictive nature of their visa arrangements.
It found that many workers were victims of "unscrupulous employers," who often did not face consequences for their misconduct.
Many workers were also let down by the systems in place that should have detected exploitation, according to the report, which added that there were difficulties in reporting exploitation and modern slavery, accessing the government, as well as legal and social support.
In particular, the report highlighted "concerning evidence" about a system of labour hire exploitation in Coffs Harbour and the Nambucca Valley.
This system is perpetrated by "informal labour hire syndicates," who are able to operate undetected through different methods including:
- the use of sham and front corporate structures, bank accounts, and invoicing
- threats and intimidation, producing a culture of silence
- coordinated evasion of inspections and other enforcement actions
- coordinated resistance to the suggestion that there is a labour exploitation problem in the region, so that those suggesting there is such a problem are more easily marginalised
Labour hire licensing scheme needed
Among the 31 measures recommended in the report is the introduction of a labour hire licensing scheme "as soon as possible."
"In doing so, the NSW government should adopt a similar approach to that of Victoria, by establishing a labour hire authority to oversee licensing and regulation," the report read.
"[It] should implement a scheme which can be harmonised with a future national labour hire licensing scheme."
The report also called on the government to "urgently investigate" the allegations of systemic labour exploitation and modern slavery in Coffs Harbour and the Nambucca Valley.
It further urged the government to introduce reforms that will allow PALM workers to more easily change employers, ensure the safety and wellbeing of workers under the Working Holiday Maker programme, and amend the Work Health and Safety Act 2011 to enable SafeWork NSW inspectors to identify and respond to indicators of modern slavery during workplace inspections.
"We have also recommended that the NSW Government adequately fund the 1800 FREEDOM hotline, to meet the need for advice and support in relation to modern slavery matters in New South Wales," McGirr added.
NSW welcomes report findings
The New South Wales government, in response to the report, said the findings in Coffs Harbour and the Nambucca Valley are "deeply concerning."
"The allegations of modern slavery and the conditions workers are living and working in across Coffs Harbour and the Nambucca Valley are deeply concerning - no one should suffer working and living in these appalling conditions," said Industrial Relations and Work Health and Safety Minister Sophie Cotsis.
"The NSW Government has zero tolerance for human exploitation. Every worker deserves fair pay, access to their entitlements, and to work and live in a safe environment."
The state government said it is considering the implementation of its own labour hire licensing scheme, but stressed that it still prefers a national approach to the initiative.
"While the NSW Government's preference is for a nationally harmonised labour hire licencing scheme, we are considering all options to end the exploitation of workers in this state including a NSW scheme," Cotsis said.
"It is important to note that this is not just about fruit farms – labour hire firms operate across many sectors including construction, agriculture, and the community services sector."
NSW maintains commitment against exploitation
In its response, the state government maintained its commitment to ending the exploitation of temporary workers in NSW.
"We will consider the findings and recommendations in the report as a matter of priority and all options being explored will be discussed at a number of upcoming meetings with stakeholders and federal counterparts to look at a solution for a labour hire licencing scheme in NSW," Cotsis said.
It noted that it has already directed SafeWork NSW to establish a memorandum of understanding with the Anti-slavery Commissioner, including training inspectors to identify indicators of modern slavery and establishing referral pathways for suspected cases.
It has also started work on a Labour Hire Code of Practice, which will lead to significant penalties for labour hire providers that fail to comply.
The measures are part of the NSW government's broader effort to create safer working conditions in the state, which include the establishment of a NSW Migrant Workers' Centre, convening a Labour Hire Roundtable, and establishing a Supply Chain Compliance Program to target unlawful workplace practices.
