Peter Dutton announces end to labour agreement as part of crackdown on visa regulations, saying ‘Australian workers ... must be given priority’

This article is more than 3 years old

This article is more than 3 years old

Fast-food outlets such as McDonald’s, KFC and Hungry Jack’s will no longer be able to bring foreign workers into Australia on 457 visas to work in their stores.

Peter Dutton, the minister for immigration and border protection, has announced he will end the fast-food industry labour agreement entered into by the Gillard government in 2012.

Since the agreement was introduced, about 500 foreign workers have been granted visas to work in the fast-food industry in Australia, a little over half of those at McDonald’s.

“Australian workers, particularly young Australians, must be given priority,” Dutton said, announcing the change.

“The Turnbull government is committed to ensuring that career pathways are available for young Australians.”

Fast-food workers currently in Australia on 457 visas will have to leave the country when their visa expires or transition to another visa in order to stay.

Fast-food businesses will still be able to apply to bring workers into Australia if they can demonstrate exceptional circumstances requiring foreign labour.

“Genuine business needs for overseas workers which contribute to economic growth will still be considered,” Dutton said.



The government’s crackdown on 457 visas in the fast food industry has been welcomed by Dr Christopher Wright from the University of Sydney Business School, who said the scheme was being abused by chains.

George Christensen's ban on 457 visas would hit own electorate hard, analysis shows Read more

“The 457 visa scheme was designed to address shortages of workers qualified to do particular jobs,” Wright said. “Fast-food chains are looking for soft interpersonal skills and they should be able to find these qualifications locally.”



“The fast-food sector is currently abusing the 457 visa scheme.”



The scrapping of the fast-food agreement is part of a broader trend, under successive Labor and Coalition governments, to tighten 457 visa regulations.

The number granted has fallen from a peak of more than 68,000 in 2011 and 2012, to about 45,000 last financial year.

A 457 is a four-year business visa allowing a foreign worker and their family to come to Australia for the purpose of employment. They must be sponsored by an employer with an ABN.



The visa was designed to fill job vacancies which are difficult to fill with Australian workers. The government maintains a list of desired skilled occupations, but there has been criticism from both sides of politics in recent years that the list has become too broad.



Forget Trump's executive orders, Peter Dutton could soon be playing God | Elizabeth Colliver Read more

The current consolidated skilled occupation list has more than 650 occupations including actuary, cartographer, teacher, GP, motor mechanic, bricklayer, gym manager, zookeeper, bed and breakfast operator, goat farmer and journalist. In December, Dutton ordered a review of the list “to ensure it better reflects genuine labour market needs”.

Last financial year, the largest number of 457 visas was given to cooks.



The highest proportion of foreign workers came from India (24.6%), the United Kingdom (19.5%) and China (5.8%).

Currently 95,758 people are in Australia on a 457 visa.

In 2015-16, the government granted 45,400 visas, an 11% drop on the year before. The number of 457 visas granted has been falling since 2013, after peaking in 2011 and 2012 at more than 68,000.





