Backpacker exploitation?

Farmers, like many other employers, will seek to obtain the services of part time workers for harvesting or other farm activities at the lowest cost. Who wants to, or indeed needs to pay more than they must for a work force which is tied to them by virtue of their hostel residence?

Often there are more backpackers seeking work than there are vacancies. They have no bargaining power, are in transit to other parts of Australia and, being foreigners, probably don’t know how or who they should lodge a complaint with. Backpackers find themselves in a vulnerable position which may and does lead to exploitation.

A German backpacker expressed dismay that after working a 40-hour week and after tax had been deducted, he finished up with less than $250 in hand. Over half his income went to pay for accommodation and the rest paid for a frugal diet and other living expenses. There was certainly no capacity to save and while he had completed a further five of the 88 days work in primary industry stipulated as a visa condition, he felt as though he had been exploited. He probably was.

What can be done to ensure that backpackers have a choice of reasonably priced accommodation to choose from in rural areas, are protected from wage exploitation and are paid a fair wage for a fair days work?

Conditions attached to the 417 visa specify the regional areas where backpackers may seek employment in primary industries such as fishing, farming and mining. Job Services Australia (JSA) is represented in the major centre of each those regions - eg. Bundaberg, Shepparton, Ballina etc. It could be made a requirement that primary producers seeking casual labour lodge their requirements with JSA or some other appropriate offices, while remaining free to reach agreements with backpacker hostels should they wish.

JSA offices would then become the focal point where backpackers seeking a part-time job in primary industry could go in person or consult via its Internet site for advice on the availability of employment, including advice on location, nature of work, wages offered and other conditions. A JSA officer would then be in a position to monitor conditions advised by the employer to ensure that they complied with legal requirements and deal with any complaints from employees.

Backpacker hostels would no longer have monopoly agreements with employers, an arrangement which mitigates non-backpackers gaining employment in this area, notably Aboriginals. This inequity would be overcome if information about jobs available were freely available to any interested party from a JSA office or its Internet site.

Hostels could continue to offer employment and transport to and from work sites for residents. However, they might have to compete for custom more on the basis of the quality and price of accommodation and other facilities offered such as availability of kitchen and crockery, wi-fi or computer services provided, or a reputation as a clean, friendly and well run establishment.

With competition for custom more soundly based, hostels might be encouraged to improve their amenities in order to attract custom. Word of the best value for money would soon spread among backpackers, all of whom are computer literate, most of whom have mobile phones and can readily contact each other.

Government has devised a scheme which provides farmers with the cheapest labour available through the ultimate lure of backpackers gaining permanent residency status. Having done so, it has a responsibility to ensure that participants in its scheme are not exploited.

Making information on employment availability and conditions more widely available to backpackers, involving JSA in monitoring work conditions and providing a focal point for backpackers to make complaints, seem essential.