Unions claim Cth procurement contributes to exploiting illegal immigrants

ACT unions believe that Commonwealth Government procurement has contributed to hundreds of illegal immigrants being bussed in to work on ACT construction sites who are being exploited to carry heavy materials and perform menial work.

Unions ACT secretary Kim Sattler said Commonwealth Government procurement was a significant part of the problem because the tendering processes used did not ask the questions that would help weed out sham contractors.

The ACT Government has been in talks with the unions and is poised to introduce a mandatory audit tool for all its worksites.

'It's something I think we should do and do as soon as possible,” Industrial Relations Minister Katy Gallagher said.

Master Builders ACT deputy executive director Jerry Howard said he believed the overseas workers were being brought in on busses from Sydney.

'I don't think we can ever fully stop the situation where rogue contractors are coming from Sydney and bringing people who don't have proper visas and status in Australia,' he said.

'But we keep hammering the message to our members, 'You must ensure your contractors have proper arrangements in place for their employees. It's your responsibility'.'

CFMEU ACT branch secretary Dean Hall estimated there would be 'hundreds' of exploited workers being paid as little as $8 per hour on Canberra work sites, working 12-hour days, seven days per week and living in share accommodation.

'I have found five guys living together in one hotel room,' he said.

'Labour brokers arrange for them to get student visas not at university or TAFE but some Mickey Mouse sort of course particularly in areas like hospitality.

'They have their passports taken off them when they arrive, they don't pay tax, they get paid $800 to $1000 per week.

'They get put in a house together where they pay an exorbitant amount for rent and food. It's total exploitation,' he said. 

The Australian Building and Construction Commission has reported a sharp rise in reports of sham contracting and said most of the 2009-10 investigations were conducted in the ACT following allegations of multiple instances of alleged sham contracting.

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