Australia is set to make changes to a popular programme aimed at sourcing foreign workers amidst allegations of misuse by technology companies such as Tata Consultancy Services and IBM.
The proposed legislation will, among other things, compel employers to provide evidence of labour shortages in Australia, before recruiting foreigners using the 457 visa system, a commonly used programme for bringing in skilled migrant workers.
The proposed process, also known as labour market testing, will be especially detrimental to Indian IT companies with operations in Australia, as it would jack up costs and increase delays in the recruitment process.
Last week, an Australian news portal had accused TCS of overusing the 457 Visa programme. The report quoted former employees of the company as saying that the company would fly in workers from India without advertising for Australian workers, in a bid to reduce operating costs.
Strict policies
Responding to a Business Line query, a TCS spokesperson said: “TCS has strict policies and procedures in place that ensure complete compliance in visa usage in Australia and all other markets where it operates. To imply that it misused visa regulations in any manner is completely false and inaccurate.”
Further, TCS said that a recent audit by the Australian government showed that that company is fully compliant with all legal requirements regarding visas. Though TCS does not give country-specific headcount details, the company is said to employ over 1,500 in Australia. In addition to TCS, other Indian firms such as Wipro, Infosys and Tech Mahindra have a presence in Australia. These companies are already challenged by political movements in US and Canada that seek to tighten visa norms. Similarly, IBM was accused of ramping up the number of foreigners it brought to Australia using the 457 route, even while it retrenched 1,400 local staffers. IBM denied any wrongdoing in a statement given to The Australian newspaper.
Within some quarters of the government, the information, communication and technology (ICT) sector is seen as the worst offender in the ‘overuse’ of 457 visas. On the other hand, several trade unions and business organisations say the problems amount to few rogue cases.
Experts believe that the timing of the debate on temporary migration is crucial given that federal elections are around the corner in Australia.
“We believe that many of the allegations (against outsourcing companies) are unfounded. The trade unions have gone in an overdrive mode since this is an election year…we are working with our partner, the Australian Information Industry Association (AIIA) and analysing the situation…,” said Ameet Nivsarkar, Vice-President of software industry body Nasscom.
Aggressive stance
Interestingly, the AIIA has adopted an aggressive stance against the proposed changes.
“Individuals who hold 457 visas not only fill real and immediate needs within ICT organisations, but also make a significant and positive contribution to the Australian economy – generating more revenue than cost. Allegations that the ICT sector is one of the worst offenders in what the Federal Government says is the “overuse of 457 visas” are exactly that: allegations. To date, no data has been offered up to substantiate these claims,” the AIIA said in a statement. Later this week, members of Australian Parliament are set to vote on changes to the 457 visa system.
adith.charlie@thehindu.co.in