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| Coalition opens door to deal on China-Australia free trade agreement | Coalition opens door to deal on China-Australia free trade agreement |
| (about 3 hours later) | |
| The Turnbull government appears set to reach a deal to secure passage of the China-Australia free trade agreement (Chafta) after it vowed to consider the opposition’s demands “in good faith” in a bid to resolve the long-running political dispute. | The Turnbull government appears set to reach a deal to secure passage of the China-Australia free trade agreement (Chafta) after it vowed to consider the opposition’s demands “in good faith” in a bid to resolve the long-running political dispute. |
| On Tuesday the federal Labor party signed off on its proposed amendments to the Migration Act, which would form the basis of negotiations with the government aimed at passing legislation necessary to implement Chafta. | On Tuesday the federal Labor party signed off on its proposed amendments to the Migration Act, which would form the basis of negotiations with the government aimed at passing legislation necessary to implement Chafta. |
| The trade minister, Andrew Robb, signalled that the government was prepared to accept changes, so long as the measures did not discriminate against China or breach the text of the agreement. | The trade minister, Andrew Robb, signalled that the government was prepared to accept changes, so long as the measures did not discriminate against China or breach the text of the agreement. |
| “We’ll have genuine discussions with the Labor party and hopefully it will identify a pathway to get these things through the parliament,” Robb said. | “We’ll have genuine discussions with the Labor party and hopefully it will identify a pathway to get these things through the parliament,” Robb said. |
| Labor’s proposals include a mandatory requirement for employers to try to find local workers before seeking overseas labour under the 457 visa scheme. | Labor’s proposals include a mandatory requirement for employers to try to find local workers before seeking overseas labour under the 457 visa scheme. |
| They would also increase the minimum base pay for foreign workers from $53,900 to $57,000 and would ensure tradespeople obtained the required occupational licence as a visa condition. | They would also increase the minimum base pay for foreign workers from $53,900 to $57,000 and would ensure tradespeople obtained the required occupational licence as a visa condition. |
| Labor says the labour-market-testing rule would apply to employers using work agreements, which include the Chafta-negotiated arrangements for major development projects in Australia, but because they have broader effect they are “non-discriminatory”. | Labor says the labour-market-testing rule would apply to employers using work agreements, which include the Chafta-negotiated arrangements for major development projects in Australia, but because they have broader effect they are “non-discriminatory”. |
| The amendments – which were discussed at a caucus meeting on Tuesday – represent an attempt by Labor’s leader, Bill Shorten, and trade spokeswoman, Penny Wong, to overcome the intense political dispute over Chafta. | The amendments – which were discussed at a caucus meeting on Tuesday – represent an attempt by Labor’s leader, Bill Shorten, and trade spokeswoman, Penny Wong, to overcome the intense political dispute over Chafta. |
| Related: China free trade agreement must not 'slip through our fingers', official warns | Related: China free trade agreement must not 'slip through our fingers', official warns |
| Labor is hopeful of reaching a deal with Malcolm Turnbull, who has signalled the government is open to talks with Labor about any specific proposals. The former prime minister, Tony Abbott, had ruled out such talks on the basis that “there is nothing to negotiate”. | Labor is hopeful of reaching a deal with Malcolm Turnbull, who has signalled the government is open to talks with Labor about any specific proposals. The former prime minister, Tony Abbott, had ruled out such talks on the basis that “there is nothing to negotiate”. |
| Shorten said the opposition had crafted its amendments in a way that did not require a reopening of negotiations with Beijing on the treaty text, but would “make sure that all Australians can be winners out of a China free trade agreement”. | Shorten said the opposition had crafted its amendments in a way that did not require a reopening of negotiations with Beijing on the treaty text, but would “make sure that all Australians can be winners out of a China free trade agreement”. |
| “Today we urge Malcolm Turnbull and the government to come to the table to deal with a range of concerns that have been put forward and then we can all successfully support the China free trade agreement,” he said. | “Today we urge Malcolm Turnbull and the government to come to the table to deal with a range of concerns that have been put forward and then we can all successfully support the China free trade agreement,” he said. |
| It is understood seven Labor MPs or senators called for the party to take a stronger line when they addressed the caucus meeting on Tuesday. Five others spoke in favour of the party’s proposed position, which was ultimately adopted. | It is understood seven Labor MPs or senators called for the party to take a stronger line when they addressed the caucus meeting on Tuesday. Five others spoke in favour of the party’s proposed position, which was ultimately adopted. |
| The long caucus debate was said to be “robust and hard-fought”. | The long caucus debate was said to be “robust and hard-fought”. |
| Some members of the Labor caucus were concerned about Chafta including an investor-state dispute settlement mechanism that allowed companies to sue the government. They were also worried about the consequences of the chapter dealing with the movement of natural persons. | Some members of the Labor caucus were concerned about Chafta including an investor-state dispute settlement mechanism that allowed companies to sue the government. They were also worried about the consequences of the chapter dealing with the movement of natural persons. |
| But Wong said there were limits to what could be done about the chapter because it was in the text of the agreement. Labor had proposed lifting the base pay as a way of dealing with the potential issue of exploitation of foreign workers, she told reporters after the meeting. | But Wong said there were limits to what could be done about the chapter because it was in the text of the agreement. Labor had proposed lifting the base pay as a way of dealing with the potential issue of exploitation of foreign workers, she told reporters after the meeting. |
| Wong said while the Labor party may have concerns about aspects of Chafta, “we recognise as a responsible opposition that we have to work within the framework of the existing agreement”. | Wong said while the Labor party may have concerns about aspects of Chafta, “we recognise as a responsible opposition that we have to work within the framework of the existing agreement”. |
| Wong emphasised that the proposed changes were merely an “exposure draft” – a position that appeared to leave the door open to shifting ground on the details in forthcoming negotiations with the government. | Wong emphasised that the proposed changes were merely an “exposure draft” – a position that appeared to leave the door open to shifting ground on the details in forthcoming negotiations with the government. |
| “They would enable, if the negotiation is successful, bipartisan support for the China free trade agreement, which we believe is in the national interest,” she said. | “They would enable, if the negotiation is successful, bipartisan support for the China free trade agreement, which we believe is in the national interest,” she said. |
| Wong would not say whether Labor would seek to block the Chafta legislation if the government blocked any of the proposed amendments. | Wong would not say whether Labor would seek to block the Chafta legislation if the government blocked any of the proposed amendments. |
| “We’ll go through that process of negotiation and consultation and if we’re not in a position to finalise those prior to the House [of Representatives] discussion then obviously we’ll move them in the Senate,” she said. | “We’ll go through that process of negotiation and consultation and if we’re not in a position to finalise those prior to the House [of Representatives] discussion then obviously we’ll move them in the Senate,” she said. |
| Unions were pushing for Labor to take a hard line against the foreign worker provisions in the deal, and were accused by the government of running a xenophobic campaign. The union movement insisted the concerns were legitimate. | Unions were pushing for Labor to take a hard line against the foreign worker provisions in the deal, and were accused by the government of running a xenophobic campaign. The union movement insisted the concerns were legitimate. |
| The government wants to pass the Chafta implementation legislation before the end of the year so Australian companies can gain the benefit of two rounds of tariff cuts in quick succession. | The government wants to pass the Chafta implementation legislation before the end of the year so Australian companies can gain the benefit of two rounds of tariff cuts in quick succession. |
| Robb said the government had yet to study Labor’s proposals in detail but would have “genuine discussions” with the opposition soon. | Robb said the government had yet to study Labor’s proposals in detail but would have “genuine discussions” with the opposition soon. |
| The trade minister played down the significance of the proposed changes, saying it was already government policy to require labour market testing for workers on major projects worth $150m and above. Labor wanted this to be protected in legislation rather than as a matter of policy. | The trade minister played down the significance of the proposed changes, saying it was already government policy to require labour market testing for workers on major projects worth $150m and above. Labor wanted this to be protected in legislation rather than as a matter of policy. |
| “At first glance, the things that they are asking for either provide clarity or they provide greater comfort to existing measures,” Robb said. | “At first glance, the things that they are asking for either provide clarity or they provide greater comfort to existing measures,” Robb said. |
| He argued that if the government accepted amendments it would not amount to a concession that there were problems in the original agreement. This was because Labor had conceded that the substance of Chafta could not be changed, Robb said. | He argued that if the government accepted amendments it would not amount to a concession that there were problems in the original agreement. This was because Labor had conceded that the substance of Chafta could not be changed, Robb said. |
| The Greens senator Peter Whish-Wilson said the proposed amendments were “simply playing around the edges” and would not stop Chafta from driving down wages and working conditions. | The Greens senator Peter Whish-Wilson said the proposed amendments were “simply playing around the edges” and would not stop Chafta from driving down wages and working conditions. |
| “By not attempting to fix chapter 10 of Chafta, Labor is accepting the need to remove labour market testing for contractual service providers,” Whish-Wilson said. “This covers a wide range of occupations, from IT technicians to cleaners. Labor may have sought to increase the wage threshold for Chinese contractual service providers, but in many circumstances this will still be well below Australian award rates.” | “By not attempting to fix chapter 10 of Chafta, Labor is accepting the need to remove labour market testing for contractual service providers,” Whish-Wilson said. “This covers a wide range of occupations, from IT technicians to cleaners. Labor may have sought to increase the wage threshold for Chinese contractual service providers, but in many circumstances this will still be well below Australian award rates.” |
| The Australian Council of Trade Unions said the amendments were “a step in the right direction” but there were “still some details that need improvement”. | |
| “We look forward to the opportunity to work with the ALP, the government and crossbenches to that end,” said the president of the peak union body, Ged Kearney. | |
| “We will continue to discuss our concerns until we are convinced that workers’ jobs are protected.” | |
| The Electrical Trades Union, which was one of the main unions campaigning against Chafta, also stopped short of expressing immediate support for Labor’s position. | |
| A spokesman said the ETU was “currently reviewing” the proposed amendments and was hopeful of achieving “meaningful and effective safeguards for Australian jobs and conditions, as well as protections for worker safety and migrant workers”. | |
| Several business groups reacted cautiously. | |
| The Australian Industry Group, which opposes labour market testing, said it would be open to supporting Labor’s push to enshrine the rules in legislation “if the measures did not add to existing requirements or make them more onerous”. | |
| The Business Council of Australia said while it believed amendments were unnecessary, the main parties should reach an agreement on any measures that “do not detract from the spirit of the agreement unnecessarily, or add to cost and complexity”. | |
| But the Australian Chamber of Commerce and Industry called on the government to hold its ground and resist the “shamefully opportunistic” union-driven amendments. |