A NUMBER of Western Australian businesses have received licences to recruit overseas workers almost a year after the Howard government moved to tighten the process.
A NUMBER of Western Australian businesses have received licences to recruit overseas workers almost a year after the Howard government moved to tighten the process.
Belmont-based labour hire firm Skill Hire Pty Ltd is among the first in WA to receive a licence to hire out overseas workers to local businesses.
Since October last year, firms that contract out overseas workers - previously allowed under the 457 visa business sponsorship route - have been banned from doing so unless they secure an on-hire labour agreement from the government.
Under its new deal, Skill Hire will recruit at least 450 skilled overseas workers over the next three years, using its existing networks in South Africa, the Philippines, India, Malaysia, Canada and Europe.
While the company can bring in workers for any blue-collar occupations deemed to be in high demand, it will mainly source welders, heavy-duty fitters and automotive electricians.
Skill Hire recruitment state manager Paul Whittle said the company, which also employs more than 600 apprentices in WA, had decided to pursue an on-hire licence to assist clients that had found the process of recruiting overseas workers too onerous.
"A lot of our clients don't want to go through the process of sourcing the candidates themselves, because of the time, sponsorship and monitoring requirements," he said.
The labour agreements - which are negotiated with the Department of Education, Employment and Workplace Relations - were introduced as part of new legislation to crack down on companies exploiting the 457 visa system.
Since the new rules came into effect on October 1 2007, the Department of Immigration and Citizenship has awarded on-hire labour agreements to nine WA-based companies.
Another nine companies have lodged applications and are waiting for their on-hire agreements to be processed.
West Perth-based OWI Group (Australia) Pty Ltd is one of those, having applied in November last year.
While the company has been able to operate its recruitment arm since then, the 457 visa labour hire business - which accounts for 30 to 40 per cent of turnover - has suffered.
OWI Group managing director John Fletcher said he estimated at least $1 million in revenue had been lost because the company had not yet been awarded an agreement.
"I've got 21 [457 visa] workers waiting until we get a licence. All the paperwork is done and lodged, it's just a matter of getting approval," he said.
Mr Fletcher said many labour hire businesses had chosen not to apply for a licence because of the paperwork involved and stringent requirements, such as ensuring candidates were kept in full-time employment for the duration of the four-year visa.
"There's a lot of labour hire companies that have chosen not to jump over hurdles to apply for the licence because of the undertaking required," Mr Fletcher said.
The requirements include paying for workers' visa and relocation costs, and potentially income protection insurance in future.
