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Articles

Working holiday makers in Australian horticulture: labour market effect, exploitation and avenues for reform

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Pages 99-130 | Published online: 11 Jun 2018
 

ABSTRACT

Using a mixed-method analysis, this paper examines the effect of working holiday makers (WHMs) on the labour market for low-skilled work in the horticulture industry. Since the inception of the WHM visa in 1975, the horticulture industry has come to rely increasingly on WHMs as the core source of labour for picking and packing fruit and vegetables. This reliance has altered employers’ expectations of labour flexibility, cost and productivity and has limited the role of local workers in the industry in many locations. At the same time, there is evidence of widespread exploitation of WHMs in the industry. There is a difficult policy challenge of how to address the problems of exploitation while maintaining a reliable labour supply for the industry. The article draws on the growing literature considering the role of temporary labour migration on national labour markets to frame the analysis of WHMs in Australian horticulture, and concludes with suggestions for how the horticulture labour market can be reformed through appropriate, targeted regulation of temporary migrants in the industry.

Disclosure statement

No potential conflict of interest was reported by the authors.

Notes on contributors

Alex Reilly is Professor of Law and the Director of the Public Law and Policy Research Unit at the University of Adelaide. Alex researches and teaches in the areas of migration, citizenship, constitutional law and Indigenous legal issues. He has co-authored two books, Australian Public Law and Rights and Redemption: History, Law and Indigenous People, and co-edited an international collection on Indigenous sovereignty, Sovereignty: Frontiers of Possibility. Alex contributes to policy debates in his areas of expertise, writing regularly on refugee issues in The Conversation and other media outlets, and contributing to the work of government and parliamentary inquiries.

Joanna Howe is Associate Professor of Law at the University of Adelaide and a consultant with Harmers Workplace Lawyers. She holds a Doctorate of Philosophy in Law from the University of Oxford where she studied as a Rhodes Scholar. Joanna is a leading Australian expert on the legal regulation of temporary labour migration. Joanna is the author and co-editor of three books and her work is internationally recognised. Her edited collection (with Rosemary Owens) Temporary Labour Migration in the Global Era is the seminal international work on the regulation of transnational migration flows between countries on a temporary basis, and her monograph Rethinking Job Security provides a three country study of unfair dismissal law.

Diane van den Broek is Associate Professor of Work and Organisational Studies at the University of Sydney Business School. She is also Co-Convenor of the Migrants@Work Research Group. With her Co-Convenor, Dimitria Groutsis, Diane has initiated numerous projects and events that develop important conversations with policy-makers, practitioners and academics on the issues of work and migration in Australia. As well as issues related to work and migration, Diane undertakes research on workplace diversity and inclusion, lookism, identity and aesthetic labour and global work.

Chris F. Wright is a Research Fellow in the Discipline of Work and Organisational Studies at the University of Sydney Business School. He has a Ph.D. in Politics and International Studies from the University of Cambridge. Chris’s research covers various issues relating to the intersection of employment, globalisation and public policy, with a particular interest in immigration, labour market regulation and supply chains. He has written commissioned research reports for the UK, Dutch and Australian governments, the International Labour Organization and the Lowy Institute for International Policy and is the author of over 50 scholarly publications including many articles in leading business, management, political science and economics journals.

Notes

1 Castells (Citation1975), p 4, Ruhs and Anderson (Citation2010), ch 2.

2 Bauder (Citation2006), p 4. Bauder (p 15) quotes Castells (Citation1975), ‘migration and labor markets affect each other: migration flows regulate labor markets, and labor markets shape migration flows’. See also, Ruhs and Anderson (Citation2010); Waldinger and Lichter (Citation2003).

3 Underhill and Rimmer (Citation2016); Interview with Growers (Focus Group, Wanneroo, Western Australia, 12 March 2018).

4 See Howe et al (Citation2017).

5 See e.g. Fair Work Ombudsman (Citation2016).

6 Joint Standing Committee on Migration (Citation1997).

7 Senate Standing Committee on Employment, Workplace Relations and Education (Citation2006), p 5.

8 Castles, de Haas and Miller (Citation2014).

9 Curtain et al (Citation2016). The International Labour Organization says that it is incumbent upon national governments
to create ‘instruments of governance which guarantee a fair share of the prosperity which migration helps to create’ for temporary migrant workers in recognition of their contribution to the societies and economies in which they work: International Labour Organization (Citation2014), p 4 (authors’ emphasis).

10 Gibson and McKenzie (Citation2014); Ruhs (Citation2013); Castles, de Haas and Miller (Citation2014).

11 Rosewarne (Citation2010), p 104.

12 See eg Costello and Freedland (Citation2014); Castles and Kosack (Citation1973). Rosewarne (Citation2010) describes temporary labour migrants as a new proletariat, marked by lack of power in the labour market.

13 Fudge (Citation2012); Boucher (Citation2016).

14 Gautié and Schmitt (Citation2010); Tham, Campbell and Boese (Citation2016).

15 Miles (Citation1987); Fudge and Strauss (Citation2013).

16 See eg Hoang and Yeoh (Citation2015).

17 Mares (Citation2016a).

18 Ruhs and Anderson (Citation2010), p 16.

19 Ruhs (Citation2013).

20 Waldinger and Lichter (Citation2003), p 15. See also, Doeringer and Piore (Citation1971).

21 van den Broek et al (Citation201Citation6); Green et al (Citation2016).

22 Moriarity et al (Citation2012), p 1872.

23 Waldinger and Lichter (Citation2003), p 36.

24 See eg Ruhs and Anderson (Citation2010), p 26.

25 Ruhs and Anderson (Citation2010), p 29.

26 Piore (Citation1979), pp 95–98.

27 Bauder (Citation2006), pp 21–22.

28 Howe and Owens (Citation2016), p 103.

30 Rogaly (Citation2008).

31 Ruhs and Anderson (Citation2010), p 23; Waldinger and Lichter (Citation2003), p 16.

32 Waldinger and Lichter (Citation2003), p 16.

33 Tham et al (Citation2016).

34 Tham et al (Citation2016), pp 194–199.

35 Ruhs and Anderson (Citation2010), pp 23–30.

36 Hugo (Citation2014).

37 Ruhs and Anderson (Citation2010). See also, Martin (Citation2017), p 259.

38 Howe and Owens (Citation2016), pp 3–42.

39 Castles and Kosack (Citation1973).

40 Piore (Citation1979).

41 Freeman (Citation1995), p 885. See also Hollifield (Citation2004).

42 Wright (Citation2012).

43 Clibborn and Wright (Citation2018).

44 Wright and Clibborn (Citation2017). See eg Roach (Citation1995); House of Representatives Standing Committee on Employment, Workplace Relations and Workforce Participation (Citation2007), pp 146–147; Senate Standing Committee on Employment, Workplace Relations and Education (Citation2006), pp vii–ix.

45 Ruhs and Anderson (Citation2010), p 39.

46 Howe et al (Citation2017), p 32.

47 Joint Standing Committee on Migration (Citation1997), p 9 [2.22].

48 Joint Standing Committee on Migration (Citation1997), p 9 [2.22].

49 Department of Home Affairs, ‘Global Visa and Citizenship Processing Times’ https://www.homeaffairs.gov.au/about/access-accountability/service-standards/global-visa-citizenship-processing-times.

50 This fee had been $440 but was reduced to $390 in the Treasury Laws Amendment (Working Holiday Reform) Act 2016 (Cth).

52 Department of Jobs and Small Business, Seasonal Worker Program Application form, last modified 17 December 2017, https://docs.jobs.gov.au/documents/seasonal-worker-programme-application-form.

53 Form 1416 is available from: <http://www.bu.edu/abroad/files/2014/01/1416-blank.pdf>. The form is 19 pages in length.

54 Department of Immigration and Border Protection, Australian Government, Procedures Advice Manual 3 (PAM3) sch 2 Visa 416 — Special Program [P Sch2.416-2.4].

55 Barrientos (Citation2013); Robinson and Rainbird (Citation2013); Watkins (Citation2015).

56 See, eg, Meldrum-Hanna and Russell (Citation2015); McKenzie and Baker (Citation2016). See also, Productivity Commission (Citation2015) p 935; Underhill and Rimmer (Citation2016).

57 Industrial Relations Victoria (Citation2016), p 52.

58 Underhill (Citation2010).

59 Across the agriculture industry generally, only 2.1% of workers are members of a trade union: ABS, 6310.0 – Employee Earnings, Benefits and Trade Union Membership, Australia, August 2013 (16 March 2016) <http://www.abs.gov.au/ausstats/[email protected]/mf/6310.0>.

60 At its 2017 conference the AWU identified agriculture as one of six priority membership growth areas after commissioning research from Professor David Peetz, see: ‘Pilot Schemes Aims to Build Relationship with Members’, Workplace Express (online), 27 February 2017.

61 Baker, McKenzie and Schneiders (Citation2016).

62 Howe et al (Citation2017), pp 102–105.

63 See, e.g. Dias-Abey (Citation2018).

64 Bhati (Citation1978), p 106.

65 Sexton (Citation1976), p 113.

66 Tan and Lester (Citation2012), pp 373–374.

67 Howe et al (Citation2017), p 69.

68 Valle, Millist and Galeano (Citation2017), p 9.

69 Hugo (Citation2001); Hanson and Bell (Citation2007), p 106.

70 Hanson and Bell (Citation2007), p 106.

71 Brebner (Citation1998), in Hanson and Bell (Citation2007), p 106.

72 Department of Employment, Workplace Relations and Small Business (Citation2000), in Hanson and Bell (Citation2007), p 106.

73 Reilly (Citation2015), p 478.

74 Hugo (Citation2001).

75 Murphy (Citation1995).

76 Withers and Birrell (Citation1991).

77 Industry Commission (Citation1993), p 17.

78 Joint Standing Committee on Migration (Citation1997).

79 Joint Standing Committee on Migration (Citation1997), p xx.

80 Murphy (Citation1995).

81 Murphy (Citation1995), p 39.

82 Joint Standing Committee on Migration (Citation1997), p 103.

83 Joint Standing Committee on Migration (Citation1997), p xxvi.

84 Joint Standing Committee on Migration (Citation1997), p 104.

85 Joint Standing Committee on Migration (Citation1997), pp 147–151.

86 The Swan Hill Rural City Council noted an increase in reliance on WHMs who were reliable and hardworking and an important backup supply of labour: Joint Standing Committee on Migration (Citation1997), p 41. The Riverina Area Consultative Committee stated that the need for WHMs arose because low unemployment levels means there are ‘not sufficient local people to work during peak harvest season’: Joint Standing Committee on Migration (Citation1997), p 42.

87 Joint Standing Committee on Migration (Citation1997), p 41.

88 Joint Standing Committee on Migration (Citation1997), p 41.

89 Joint Standing Committee on Migration (Citation1997), p 40.

90 Joint Standing Committee on Migration (Citation1997), p xxxii.

91 The countries are: Germany, Sweden, Norway, Denmark, Hong Kong, Finland, Cyprus, Italy, France, Taiwan, Belgium, Estonia and the Netherlands.

92 Reilly (Citation2015), p 477.

93 The subclass 462 agreement countries are: Thailand, Chile, Turkey, U.S.A., Malaysia, Indonesia, Bangladesh, Argentina, Uruguay, Poland, Portugal, Spain, China, Slovak Republic, Slovenia, Israel, Hungary, San Marino, Luxembourg and Vietnam.

94 United Working Holiday Makers in Australia (Citation2015), p 7.

95 Department of Immigration and Border Protection (Citation2016), p 25.

96 The JSCM noted these as reasons not to extend the WH visa beyond one year in its 1997 report.

97 Department of Employment (Citation2016), p 29.

98 OECD (Citation2015), p 26.

99 Reilly (Citation2015); Campbell and Tham (Citation2013); Robertson (Citation2014).

100 JSCM (Citation1997), p 103.

101 Harding and Webster (Citation2002), p 23.

102 Harding and Webster (Citation2002), p 7.

103 Harding and Webster (Citation2002), p 7.

104 See also Joint Standing Committee on Migration (Citation1997); Murphy (Citation1995).

105 Howe et al (Citation2017), pp 53–59.

106 Harding and Webster (Citation2002), p 45 (emphasis omitted).

107 Tan et al (Citation2009).

108 Tan and Lester (Citation2012), pp 373–374. Tan’s estimation of the proportion of WHMs in the harvest workforce is supported by a Horticulture Innovation Australia estimate that in 2008 the horticulture workforce was constituted of 38% backpackers, 34% locals, 7% students. See also Fair Work Ombudsman (Citation2016). However, caution needs to be exercised in making these comparisons as the sources underpinning these datasets will invariably be different. Similarly, as discussed above, our survey of vegetable growers in 2016 revealed that 72% of growers had engaged WHMs in the last five years.

109 Tan et al (Citation2009), p 15.

110 Ruhs and Anderson (Citation2010).

111 OmniPoll (Citation2016), p 25.

112 OmniPoll (Citation2016), p 25.

113 Howe et al (Citation2017), pp 38–39.

114 Howe et al (Citation2017), pp 38–39.

115 Howe et al (Citation2017), p 54.

116 Howe et al (Citation2017), pp 54–55.

117 Howe et al (Citation2017), p 55.

118 Howe et al (Citation2017), p 55.

119 Howe et al (Citation2017), pp 37, 56.

120 Howe et al (Citation2017), p 56.

121 Howe et al (Citation2017), p 33.

122 Howe et al (Citation2017), p 39.

123 Howe et al (Citation2017), p 41.

124 OmniPoll (Citation2016), pp 29–31.

125 Reilly (Citation2015).

126 Fair Work Ombudsman (Citation2016), p 10. The Fair Work Ombudsman’s report noted that there is no legal requirement for employers to sign the Employment Verification Form and there are no penalties for employers who refuse to sign the form in a situation where a visa holder has in fact completed these work requirements.

127 Fair Work Ombudsman (Citation2016), p 33 (authors’ emphasis).

128 Howe et al (Citation2017).

129 Fair Work Ombudsman (Citation2016).

130 Australian Government (Citation2016).

131 Wright (Citation201Citation7).

132 Fair Work Ombudsman (Citation2016).

133 Rosewarne (Citation2010).

134 Bauder (Citation2006)

135 Tan et al (Citation2009).

136 Joint Standing Committee on Migration (Citation1997), pp 46–47.

137 Fair Work Ombudsman (Citation2016).

138 Fair Work Ombudsman (Citation2016), p 33.

139 Fair Work Ombudsman (Citation2016), p 33.

140 Senate Standing Committee on Employment, Workplace Relations and Education (Citation2006); Tan et al (Citation2009); Howe et al (Citation2017).

141 Howe et al (Citation2017).

142 Howe et al (Citation2017), p 27.

143 Howe et al (Citation2017), p 30.

144 Underhill and Rimmer (Citation201Citation6). A regulatory change in 2016 requiring the provision of payslips as evidence of work for the visa extension may affect this unofficial market.

145 Reilly (Citation2015).

146 Birrell and Healy (Citation2012), p 27.

147 Waldinger and Lichter (Citation2003), p 16.

148 Howe et al (Citation2017), p 37.

149 Howe et al (Citation2017), Appendix 1; OmniPoll (Citation2016), p 30.

150 Howe et al (Citation2017), p 31.

151 Howe et al (Citation2017), p 32.

152 Migration Regulations 1994 (Cth) cl 417.211.

153 Lin (Migration) [2017] AATA 648.

154 Ruhs and Anderson (Citation2010), p 39; Piore (Citation1979), pp 26–43.

156 See also, Mares (Citation2016a); Mares (Citation2016b).

157 Breen (Citation2017), pp 110, 120–121.

158 Howe et al (Citation2017), pp 89–90.

159 Howe et al (Citation2017), pp 46, 115.

160 Howe et al (Citation2017), pp 102–103.

161 Castells (Citation1975).

162 Ruhs and Anderson (Citation2010).

163 Howe et al (Citation2017), p 42.

164 Underhill and Rimmer (Citation201Citation6); Howells (Citation2011).

165 Ninety-nine per cent of migrants maintain their lawful status in Australia. Department of Immigration and Border Protection (Citation2017), p 256.

166 Underhill and Rimmer (Citation2016) .

167 Department of Immigration and Border Protection (Citation2017b).

168 Cohen (Citation1987).

169 McGovern (Citation2007), p 217.

170 Goot (Citation2000).

171 Dutton and Turnbull (Citation2017).

172 Birrell and Healy (Citation2012), p 29.

173 Bauder (Citation2006), p 16.

174 Ruhs (Citation2013); Walsh (Citation2014).

175 Andree et al (Citation2014); Barrett (Citation2013).

176 See, in particular, recent changes to the 457 visa program in early 2017: Department of Immigration and Border Protection (Citation2017a). See also, Australian government debates over appropriate levels of migration: Karp (Citation2018).

Additional information

Funding

This work was supported by Horticulture Australia (Horticulture Innovation Australia) under [grant number VG15025].

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