Australian Economy Built on ‘Systemic Exploitation’ of Migrant Workers: Landmark Report Exposes Widespread Underpayment and Modern Slavery
- Two-thirds of temporary migrant workers surveyed were paid less than owed under the Fair Work Act, with one in five underpaid by at least $10 per hour.
- International students alone are being underpaid by about $61m per week, or $3.18bn annually, with the total amount underpaid to all migrant workers likely to be “far higher”.
- The report found 34% of migrant workers experienced at least one forced labour indicator, a form of modern slavery, with many facing unsafe conditions, excessive hours, and long periods without breaks.
- The Australian Anti-Slavery Commissioner is calling for a “reset” of the system, warning that “piecemeal Band-Aid measures” will not change the entrenched culture of exploitation.
The Australian economy is built on the back of exploited migrant workers, with a landmark new report exposing the widespread underpayment and modern slavery of temporary visa holders.
The Migrant Justice Institute’s Off the Books report, based on the largest survey of temporary migrant workers in Australian history, found that two-thirds of those surveyed were paid less than they were owed under the Fair Work Act.
The survey of 8370 migrants working from 2023-24 revealed that one in five was underpaid by at least $10 per hour, with international students alone being underpaid by about $61m per week, or $3.18bn annually.
The report’s authors warn that the overall amount underpaid to all migrant workers is likely to be “far higher”.
The more a worker was underpaid, the higher the chance of receiving misleading pay slips, unpaid super, and wage deductions, as well as being subject to sham contracting.
The report also found that 34% of those surveyed experienced at least one forced labour indicator, a form of modern slavery.
These indicators included being made to work in unsafe conditions, excessive or different hours than agreed, long periods without breaks, and being unable to leave a job they wished to leave.
The Australian Anti-Slavery Commissioner, Chris Evans, warns that these are not isolated cases of bad employers, but rather a system that produces vulnerability at scale and enables willing employers to exploit it.
“Piecemeal Band-Aid measures will not change an entrenched culture of exploitation,” Mr Evans said. “Increased enforcement will help individuals, but it will not change the system.
The system requires a reset. The vulnerabilities that allow exploitation to flourish must be extinguished to allow fair treatment for migrant workers.”
Analysis: What This Means for Australia
The report’s findings have significant implications for Australia’s national security, law enforcement, and community safety. The widespread exploitation of migrant workers not only undermines the integrity of the labour market but also creates an environment conducive to modern slavery.
The fact that international students, who are already vulnerable due to their visa status, are being underpaid by billions of dollars each year raises serious concerns about the government’s ability to protect its most vulnerable citizens.
The report’s recommendations, including the establishment of a national labour hire licensing scheme, a crackdown on concealment indicators, and stronger whistleblower protections, are a step in the right direction.
However, as Mr Evans notes, these measures are inadequate to address the widespread, deliberate underpayment of migrant workers. A more comprehensive approach is needed, one that integrates policy areas like immigration, workplace relations, higher education, and anti-slavery.
Security analysts say that the exploitation of migrant workers is a ticking time bomb for Australia’s national security. “The fact that we have a system that allows for the widespread exploitation of migrant workers is a serious concern,” said one analyst.
“It creates an environment that is ripe for exploitation by organized crime groups and terrorist organizations.”
Law enforcement insiders warn that the report’s findings highlight the need for increased resources and funding to tackle modern slavery and exploitation. “We need to take a more proactive approach to identifying and prosecuting cases of exploitation,” said one insider.
“This report shows that we have a long way to go in terms of protecting the rights of migrant workers.”
Industry observers believe that the report’s findings will have significant economic and social consequences for Australia.
“The fact that we have a system that allows for the exploitation of migrant workers is a major concern for businesses and consumers alike,” said one observer.
“It undermines the integrity of the labour market and creates an uneven playing field for businesses that do the right thing.”
The Albanese government’s sweeping industrial relations reforms in 2022 and 2024 were a step in the right direction, but the report’s authors conclude that they are inadequate to address the widespread, deliberate underpayment of migrant workers.
The government must do more to address the systemic issues highlighted in the report and work towards creating a fairer and more equitable labour market for all workers, regardless of their migration status.
