A re-elected Minns Labor Government will legislate to protect workers and businesses from dodgy labour hire providers.
This comes following an independent probity investigation into Western Sydney Airport Metro project, which resulted in the termination of a major contractor.
The Kimber Report found a number of labour supply companies had been incorporated within days of each other at the same residential address, with the same director and secretary, and were using encrypted messaging apps to send invoices and supporting material.
The investigation found suspected underpayment of workers, insurance fraud, tax fraud, and unaccounted invoices worth more than $10m.
Farmers, unions, businesses and the Modern Slavery Committee have raised similar concerns about labour hire providers operating in the horticulture sector and beyond.
A re-elected Minns Labor Government will release a bill in the first 100 days to establish a labour hire licensing scheme, that will protect all public and private sector supply chains from unscrupulous operators.
The scheme will be consistent with the national principles on Labour Hire Licensing, and will require labour hire providers in all industries and sectors to be licensed in NSW.
Under the scheme, host employers must only use the services of a registered labour hire provider, with appropriate education for businesses to ensure compliance with a new scheme and penalties for non-compliance.
The Scheme will build on the work the NSW Government has been doing to crack down on dodgy labour hire operators including:
- The introduction of measures enabling data sharing agreements with Federal bodies and SafeWork NSW, allowing the sharing of this vital information with the ATO, Border Force and AFP to help stop these companies from closing down and setting back up again once they catch wind the regulators are onto them.
- Working to establish a memorandum of understanding between SafeWork NSW and the Anti-slavery Commissioner, including training inspectors to identify indicators of modern slavery and establishing referral pathways for suspected cases.
- The development of a Labour Hire Code of Practice. Since 1 July, compliance with SafeWork NSW’s codes of practice has been mandatory, meaning labour hire providers that fail to comply may be found in breach of the Act and face significant penalties.
- Establishing a Supply Chain Compliance Program to target unlawful workplace practices and ensure government contracts support businesses doing the right thing.
- Launching the NSW Migrant Workers’ Centre to help migrant workers understand their workplace rights and access support.
The NSW Government will continue to consult with unions, industry and workers to develop a scheme that is fit for purpose.
NSW will examine the schemes operating interstate and which features are working well or need improving, to ensure a scheme in NSW is the best in the country.
Minister for Workplace Health and Safety Sophie Cotsis said:
“We have been engaging with industry, unions and stakeholders and a re-elected NSW Labor Government will regulate labour hire.
“The NSW Government has zero-tolerance for the exploitation of workers, and this commitment builds on the work we are doing to stamp out dodgy labour hire firms.
“Every worker deserves fair pay, access to their entitlements, and to work and live in a safe environment and a labour hire licencing scheme is an important step in ensuring safer workplaces for labour hire workers.”
Unions NSW Secretary Thomas Costa said:
“Until now, dodgy labour hire operators have come to NSW when they’ve been banned everywhere else. We have seen appalling abuses, with workers paid as little as 2-3 dollars an hour to do backbreaking work. The Minns Government has our full support in cleaning out the shonks and putting a floor under wages and conditions.
“This licensing reform means workers on building sites, berry farms, aged care facilities and other workplaces will know their employer has passed a basic test of honesty and propriety. It stops honest businesses being undercut by shonks. Unions have fought hard for this reform and we’ll be enforcing it.”
Australian Fresh Produce Alliance Chief Executive Officer Veronica Papacosta said:
“The Australian Fresh Produce Alliance (AFPA) welcomes the commitment to legislate for a mandatory, economy-wide labour hire licensing scheme. Industry has been seeking this reform for some time therefore a commitment to introduce a bill within the first 100 days of a re-elected government is a clear and welcome signal. We look forward to working closely with the Minns Government to ensure it is delivered and provides improved worker protections for NSW.
“NSW businesses rely on good labour hire providers, and a licensing scheme that aligns with the national principles will improve worker protections, provide compliant businesses with improved visibility and supply chain integrity. The AFPA supports this announcement and look forward to working with the Minns Government to ensure the scheme is practical, proportionate and enforceable as soon as possible.”
