answers
BUSM4558 Work in a Global Society
Week 7 The Globalisation of Labour: The Migrant Experience
In the News:
"Those who have come to this country, wherever they have come from, they deserve to be sure that they can continue to have the quality of life they came to this country for, and that means you need to have a sensible migration program,''
"That is why, also … we're going to freeze at the current levels (160,000) refugee and humanitarian intake at what is the second highest per capita in the world today‘’ (PM Scott Morrison, 28 April, 2019).
‘Cutting immigration ‘would cost billions’’ (The Age, 17 April: 2018).
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In the news:
"In Australia this year alone under the Liberals, there are 1.6 million people from overseas with visas which allow them to work in Australia,'' Mr Shorten said.
"So, Mr Morrison if he was fair dinkum would be talking about that and how we train Australians to do the jobs, rather than rely on 1.6 million people from overseas who have got visas which give them work rights.
"This is about politics, it’s not about migration. Pure politics.“ (Bill Shorten, ALP Opposition leader)
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In the News
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In the News:
Skilled migration policy and labour market performance of immigrants’ (Lowy Institute, September 2017)
‘They (skilled migrants) also experience better labour market outcomes, especially in terms of employment rate, wages, and use of skills’
Migrant Worker underpaid 93 weeks’ pay at pharmacies’ (The Age 17 April, 2018).
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Key concepts and essay questions:
Concepts:
Skills shortage
Labour shortage
Exploitation
Decent work
Questions:
Why is skilled migration often controversial?
What are some of the barriers that skilled migrant workers confront in finding employment and ‘decent work’? Discuss drawing upon the evidence and arguments presented in the relevant readings.
In Australia doing enough to stop the exploitation of migrant workers?
If yes, explain what has been effective in addressing the mistreatment of migrant workers.
If not, explain what is needed to prevent migrant workers from being mistreated in the labour market.
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Objectives:
Discuss the globalisation of labour & the factors contributing to people’s decisions to move across borders to find employment.
Discuss the controversies surrounding labour migration
Introduce the concepts: skill shortage, labour shortage, exploitation, decent work.
Consider and evaluate the migrant worker experience in Australia.
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Political environment
Fears about jobs
What motivates people to move
What motivates societies to accept migrants
What are the impacts
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Workers on the Move
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According to the International Organisation for Migration (IOM) (2015) there were:
244 million migrants worldwide in 2015 compared to 191 million migrants worldwide in 2005.
Migrants account for more than 3 percent of the world population.
International migrants make up over a third of the total population in cities like Melbourne, Sydney, Auckland, Singapore and London.
65.3 million individuals were forcibly displaced by conflict and violence by the end of 2015, of whom 21.3 million across international borders but majority of international migrants are migrant workers
Migrants tend to go to the largest cities – 39% of Sydney and 35% of Melbourne’s population born overseas
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Why do people move beyond borders?
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| Push factors | Pull factors |
| Unemployment | Potential for employment |
| Poverty wages | Better pay and conditions |
| Persecution | Safety (refugees) |
| War, civil unrest | Political and social stability |
| Drought | Food supply |
| Lack of basic services | Better infrastructure to meet basic needs |
| Isolation | Friends and family |
| Boredom | Adventure |
See Burgess and Connell 2009;
Khoo, 2014)
In 2013 over 150 million migrants were migrant workers
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Migrants and the benefits to receiving countries
Some benefits to be derived by receiving countries include but are not limited to:
‘Brain gain’: new skill acquisition
Addressing skill and labour shortages
Increased productivity
Innovation (knowledge transfer)
International social networks (e.g. diaspora).
Remittances (assisting countries to meet development goals of others).
Cultural diversity
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Migrants have higher workforce participation rates
Remittances USD 581 billion in 2015, of which 75% (USD 437 billion) was sent to low and middle income economies
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Migrants as a Proportion of Working Age Population
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Source: IMF https://blogs.imf.org/2016/10/24/migrants-bring-economic-benefits-for-advanced-economies/
Migrants generally around 15-20% for advanced economies but around 30% in Australia and NZ
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Labour migration: A source of controversy
“With migration comes public policy debate over the potential displacement of local workers by migrant workers; the marginalisation of many migrant workers into low paid and precarious jobs; the driving down of wages and conditions; the ability of migrants to assimilate into local communities; and the impact of migration on training and skill development within organisations” (Burgess and Connell 2009: 413).
And the additional problem of political leaders using migrant labour to advance political agendas.
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Migrants and segmented labour markets
Segmented labour market:
“We define labor market segmentation as the historical process whereby political economic forces encourage the division of the labor market into separate submarkets, or segments, distinguished by different labor market characteristics and behavioral rules. Segmented labor markets are thus the outcome of a segmentation process. Segments may cut horizontally across the occupational hierarchy as well as vertically” (Reich, Gordon and Edwards, 1973: 359).
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Labour market segmentation - not new – gender
Horizontal segregation - differences in the amount of people of eg each gender, nationality present across occupations – characteristics become associated with occupations eg nurses women, doctors men – cleaners
Vertical segmentation refers to the facts that men or certain groups occupy the top positions in all occupations
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Migrants and segmented labour markets
Across many countries migrant workers are ‘segmented’ into particular occupations:
Singapore: construction industry and domestic service
US: garment industry, agriculture, hospitality industry, domestic service.
Germany: civil construction, cleaning and hospitality, low-skilled manufacturing.
Saudi Arabia: agriculture, cleaning and domestic service
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Decent Work
Decent work is a concept widely used by the UN’s International Labour Organisation (ILO) to describe work which:
‘…involves opportunities for work that is productive and delivers a fair income, security in the workplace and social protection for families, better prospects for personal development and social integration, freedom for people to express their concerns, organize and participate in the decisions that affect their lives and equality of opportunity and treatment for all women and men’ (source: http://www.ilo.org/global/topics/decent-work/).
https://www.youtube.com/watch?v=mZpyJwevPqc -
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‘Protection from exploitation’ (ILO Decent Work Agenda)
What is exploitation?
Different understandings of the concept:
Not receiving ‘a fair day’s pay for a fair day’s work’
Horrendous working conditions, working long hours without additional pay.
The basis of all capitalist economies (all workers are exploited to different degrees). Exploitation=source of all business profits.
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Migrant Workers and Skill Shortages
Skilled migrants are often used by a country to fill ‘skill shortages’.
Australia has a ‘skilled migration’ policy
Some occupations currently listed on the skilled migration list:
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| Construction project manager | Cook | plumber | Migration agent |
| Procurement manager | Baker | carpenter | Human resource adviser |
| Dentist | Make up artist | Transport engineer | Production manager |
| Social worker | Early childhood teacher | Chief executive | Pig farmer |
| Architect | Civil engineer | Corporate general manager | Hairdresser |
| Midwife | Chef | Solicitor | Driving Instructor |
What is a skill shortage?
‘While the term ‘skill shortage’ seems to be clear and unambiguous, in reality it is a slippery concept with many meanings. For a shortage to occur, it is necessary for the demand for a particular type of worker to exceed the supply of such workers, but the notions of supply and of demand are themselves quite inexact’ (Richardson, 2007: 7).
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Ambiguous terms and contested – in whose eyes is there a skills shortage
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Skill Shortages
Sue Richardson (2007) proposes classifying skills shortages:
Level 1 shortage
There are few people who have the essential technical skills who are not already using them and there is a long training time to develop the skills.
Level 2 shortage
There are few people who have the essential technical skills who are not already using them but there is a short training time to develop the skills.
Skills mismatch
There are sufficient people who have the essential technical skills who are not already using them, but they are not willing to apply for the vacancies under current conditions (e.g. pay and conditions).
Quality gap
There are sufficient people with the essential technical skills who are not already using them and who are willing to apply for the vacancies, but they lack some qualities that employers consider are important (e.g. personal attributes, employability skills).
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Level 1 – professional jobs – trades
Level 2 – semi-skilled jobs
Mismatch – agricultural jobs, dairy workers
Quality gap – interpersonal skills eg NW coast
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Skill shortage or labour shortage?
Labour shortage:
Refers to a situation whereby employers believe there are not enough qualified employees to meet their hiring needs set by their terms and conditions.
Skills may be available but people are not prepared to utilise these skills for various reasons (e.g. pay is too low, there are better opportunities elsewhere, the work is difficult, etc.).
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Shortages - science and maths teachers, glaziers, arborists,
Chef – limited transferability across cuisines
Rural and remote areas can find it difficult to attract skilled people eg doctors and nurses
Training poor eg hairdressers with fast tracked training
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Does Australia have a skills shortage or labour shortage?
Australia’s Skilled Migration Policy includes:
Highly skilled occupations (e.g. neurologist, petroleum engineer, speech pathologist).
Skilled and semi-skilled occupations: (e.g. diesel mechanic, taxation accountant, stonemason, pastry chef).
Low skilled occupations: (e.g. kennel hand, gardener).
Low skilled occupations are also covered by various temporary worker schemes (e.g. Australian Seasonal Workers Scheme).
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According to the Department of Home Affairs:
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Skill: 38 per cent employer sponsored, 34 per cent skilled independent, 22 per cent state, territory and regional nominated and 6 per cent business
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Home Country of Australia’s Skilled Migrants (temporary and permanent ) in 2012
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Source: www.aph.gov.au
The experience of skilled migrants in Australia
According to results from the Australian Government’s Continuous Survey of Skilled Migrants, skilled migrants performed fairly well in the labour market with 68 per cent of people who received visas through the Skilled Stream being employed after six months of their arrival (Department of Immigration and Border Protection, 2012).
However, this does not tell the whole story.
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Migrant Workers in Australia: Contemporary Issues
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The challenges of attracting and retaining skilled migrants (see Khoo, 2014)
“For people with managerial, professional or technical skills and work experience, the job market is global, if they so choose. Their skills and work experience are sought after in a number of countries and they have a choice of where they would prefer to work” (Khoo, 2014 20).
Discrimination in the labour market?
‘Are Asian migrants discriminated against in the labour market?’
(see Junankar, Paul and Yasmeen, 2010).
Are migrant workers being exploited?
Recent wage theft cases eg Dominos, 7/11, Crust Pizza, Pizza Hut, Caltex, Coles, Woolworths
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What about international students as migrant labour?
Like many ‘local’ students, international students often rely upon part-time work while studying.
The hospitality and food service industry is where many find employment.
According to the findings of Campbell, Boese and Tham (2016)
“food services is a ‘hazardous’ industry for international students (Tham et al. 2016). Wages and conditions for many international students are poor, marked by multiple dimensions of precariousness. Some aspects of poor treatment can be attributed to the standard risks of casual employment in any of its forms. But the major deficit is widespread underpayment and non‑payment” (Campbell, Boese and Tham, 2016: 294).
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Key concepts and essay questions:
Concepts:
Skills shortage
Labour shortage
Exploitation
Decent work
RMIT University
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Key concepts and essay questions:
Questions:
Why is skilled migration often controversial?
What are some of the barriers that skilled migrant workers confront in finding employment and ‘decent work’? Discuss drawing upon the evidence and arguments presented in the relevant readings.
Why is unskilled migration often controversial?
In Australia doing enough to stop the exploitation of migrant workers?
If yes, explain what has been effective in addressing the mistreatment of migrant workers.
If not, explain what is needed to prevent migrant workers from being mistreated in the labour market.
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References
The Age (2016) ‘Hire Firm underpaid 417 visa-holders’ 22 September
Campbell, M, Boese, M and Tham, J (2016) ‘Inhospitable Workplaces? International students and paid work in food services’, Australian Journal of Social Issues, 51(3): 279-98 http://search.informit.com.au.ezproxy.lib.rmit.edu.au/fullText;dn=319460736447436;res=IELAPA
Colic-Peisker, V. (2011). ‘Ethnics’ and ‘Anglos’ in the Labour Force: Advancing Australia Fair? Journal of Intercultural Studies, 32(6), 637-654. doi: 10.1080/07256868.2011.618108
Connell, J., & Burgess, J. (2009). Migrant Workers, Migrant Work, Public Policy and Human Resource Management Retrieved from http://RMIT.eblib.com.au/patron/FullRecord.aspx?p=474387
Fair Work Ombudsman (2016), ‘Statement on 417 Visa Holders, 12 October, Fair Work Ombudsman, https://www.fairwork.gov.au/about-us/news-and-media-releases/2016-media-releases/october-2016/20161015-417-inquiry-media-release
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References
IOM (2015) IOM Global Migration Trends 2015 Factsheet. International Organisation on Migration: Geneva.
Junankar, P. N., Paul, S., & Yasmeen, W. (2010). Are Asian Migrants Discriminated against in the Labor Market? A Case Study of Australia. Singapore Economic Review, 55(4), 619-646.
Khoo, S. E. (2014). Attracting and retaining globally mobile skilled migrants: policy challenges based on Australian research. International Migration,52(2), pp. 20–30.
Richardson, S (2007) ‘What’s a skill shortage?’ NCVER: Adelaide.
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