Labor and Coalition reach agreement on China-Australia free trade deal
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Version 0 of 3. The Coalition and Labor have reached a deal to pass legislation for the China-Australia free trade agreement (Chafta), ending the intense political standoff. It follows the government’s offer to amend migration regulations to ensure employers have made genuine efforts to recruit Australian workers before seeking them from overseas under a work agreement. Such agreements are part of the proposed arrangements that Chafta would allow for development projects worth at least $150m. The government has always argued it would impose the “labour market testing” as a matter of policy but the Labor party demanded a stronger guarantee that this measure could not be weakened. Related: Labor caucus says yes to China-Australia free trade deal – politics live The trade minister, Andrew Robb, committed to amend regulations under the Migration Act to ensure that “the proposed party to the work agreement ... must have demonstrated that they have made recent and genuine efforts to recruit Australian workers in the occupation and location covered by the work agreement”. While this falls short of enshrining the requirement in the Migration Act itself, such regulations could be struck out by parliament, providing the Senate with the ability to step in if a minister changed the measures in future. In a letter to the shadow trade minister, Penny Wong, Robb also committed to amend project agreement and labour agreement guidelines to add extra criteria for the immigration minister to consider in approving such agreements. “These criteria include: analysis of labour market need; training plans; overseas worker support plans; and additional conditions that may be imposed by the minister,” Robb said. Related: Coalition opens door to deal on China-Australia free trade agreement The government would create a new regulation “to ensure observance of the criteria”. Robb has also pledged to amend regulations for the 457 visa program so that the minister must ensure the terms and conditions of employment “will be no less favourable than the terms and conditions” that would be provided to an Australian performing equivalent work at the same location. This could include looking at the terms and conditions set out in an enterprise agreement. He has also pledged to consider increasing the base rate of pay for 457 visa holders and indexing it, as part of a review to begin before the end of the year. The review will consult business bodies and unions. Robb has also pledged to toughen visa conditions to address concerns about licensed trades. A person will be required to obtain a licence within 90 days after arriving in Australia and must notify the department of immigration if it is refused, revoked or cancelled. Robb and Wong reached a handshake agreement on Tuesday evening, before the plan went to the Labor caucus meeting on Wednesday morning. The deal should guarantee passage of the Chafta implementation legislation before the end of the year. |