Bayside Group

457 Visas assists Australian Businesses

457 Sponsors provide talent and flexibility to Australian businesses.

On October 1st 2007, the previous Howard Government enacted legislation placing a number of restrictions on labour-hire companies sponsoring skilled workers under the 457 sub-class visa. In early 2008, the newly elected Rudd Government announced his party's continued support of the visa scheme. As a result, the imposed restrictions warranted a ‘transparency' in the recruitment process, ensuring a commitment to better working conditions for overseas sponsored workers. More specifically, this meant limiting the commencement of new or renewed 457 sponsorships allocated to labour-hire and recruitment companies.

Engineering labour-hire companies were in a state of crisis, as the supply couldn't keep up with the demand. In essence, the on-hire sponsorship of professionals assisted in filling vacancies within a short timeframe, resulting in a higher turnover of projects and providing the flexibility for engineering personnel to work within various companies.      

In order for recruitment businesses to employ on-hired sponsored employees they would have to demonstrate their compliance to the Federal Government through the implementation of training schemes or the greater use of graduates.

In January of 2008, the Recruitment and Consulting Services Association (RCSA) and Information Technology Contract and Recruitment Association (ITCRA) conducted a survey to analyse the current and future impacts of the new 457 Regulation. Of the 151 companies surveyed, 62% said they would be unlikely or unable to meet the training requirements under the new Regulation.

More astounding, the survey found 71% of clients used on-hire firms to assign sponsored workers as they were unable to source qualified workers in Australia. Furthermore, the RCSA reported, "From the survey participants alone, 3586 projected 457 sponsorships will be jeopardized by the labour agreement during the two year period following the change of Regulation with the mining and health industries impacted the most."

Overseas sponsorship provides businesses with international talent and expertise. However, there are more extreme risks and obligations associated with bringing an overseas worker to Australia. These risks include: maintaining their employment, the cost of return travel for the employee, all medical or hospital expenses, income protection insurance, complying with Australian immigration laws, financial support such as ‘Living Away from Home' allowance and repaying the Australian Government any costs as a result of the employee's stay in Australia.

Recruiters manage associated risks by identifying overseas applicants, qualifying their skills and suitability to work in Australia, thereby, addressing skills shortages and contributing to Australia's thriving economy. With the assistance of recruiters, businesses are able capitalize on ready-to-work manpower without the logistical restraints.

The bilateral movement of skilled workers can improve Australia's engineering landscape, while addressing the major obstacles facing businesses in obtaining human capital. Governments, industry bodies and private businesses must work together to bridge the engineering gap. Approved sponsors must select professionals who will rightfully engage in Australia's workforce, bringing a higher calibre of skills to mentor, educate and develop the next generation of the Australians.

Peter Cottee is the National Manager for Bayside Personnel, specialist engineering recruitment consultancy which currently holds a three year labour agreement to sponsor overseas professionals. Bayside has 18 years international recruitment experience including many years of experience in sourcing international candidates under a 457 sponsorship arrangement.

This article appeared in Engineers Australia - July 2008 edition.

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