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Employer theft of temporary migrant workers’ wages in Australia: Why has the state failed to act?

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  • Stephen Clibborn
  • Chris F Wright

Abstract

Wage theft has emerged as a major problem for regulation of work in Australia. Yet, the state has done little to address the issue. In this context, this article considers why there has been recent growth in reported cases of underpayment of wages, particularly of temporary migrant workers, and why the state has failed to implement a strategy to adequately address this problem. The article examines the fragmented nature of employment regulation and visa categories constraining worker agency which, combined with widening avenues for temporary migration, have contributed to the underpayment problem. We also consider how conflicting imperatives of the state, business influence over the policy process and weak political incentives to address underpayment help to account for the state’s inaction. JEL Codes: J58, J61, J81

Suggested Citation

  • Stephen Clibborn & Chris F Wright, 2018. "Employer theft of temporary migrant workers’ wages in Australia: Why has the state failed to act?," The Economic and Labour Relations Review, , vol. 29(2), pages 207-227, June.
    • Handle: RePEc:sae:ecolab:v:29:y:2018:i:2:p:207-227
    DOI: 10.1177/1035304618765906
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Søren Kaj Andersen & Chris F Wright & Russell D Lansbury, 2023. "Defining the problem of low wage growth in Australia and Denmark: From the actors’ perspectives," European Journal of Industrial Relations, , vol. 29(2), pages 177-194, June.
    2. Tom Barratt & Caleb Goods & Alex Veen, 2020. "‘I’m my own boss…’: Active intermediation and ‘entrepreneurial’ worker agency in the Australian gig-economy," Environment and Planning A, , vol. 52(8), pages 1643-1661, November.
    3. Paul Dalziel, 2019. "Wellbeing economics in public policy: A distinctive Australasian contribution?," The Economic and Labour Relations Review, , vol. 30(4), pages 478-497, December.
    4. Stephen Clibborn & Chris F. Wright, 2022. "The Efficiencies and Inequities of Australia's Temporary Labour Migration Regime," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 55(2), pages 254-262, June.
    5. Kristin van Barneveld & Michael Quinlan & Peter Kriesler & Anne Junor & Fran Baum & Anis Chowdhury & PN (Raja) Junankar & Stephen Clibborn & Frances Flanagan & Chris F Wright & Sharon Friel & Joseph H, 2020. "The COVID-19 pandemic: Lessons on building more equal and sustainable societies," The Economic and Labour Relations Review, , vol. 31(2), pages 133-157, June.
    6. Mark D Easton & Andrea M Noack & Leah F Vosko, 2021. "Are franchisees more prone to employment standards violations than other businesses? Evidence from Ontario, Canada," The Economic and Labour Relations Review, , vol. 32(1), pages 39-64, March.
    7. Chris F. Wright & Colm McLaughlin, 2021. "Trade Union Legitimacy and Legitimation Politics in Australia and New Zealand," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 60(3), pages 338-369, July.
    8. Ullah, Faiz & Harrigan, Nicholas M., 2022. "A natural experiment in social security as public health measure: Experiences of international students as temporary migrant workers during two Covid-19 lockdowns," Social Science & Medicine, Elsevier, vol. 313(C).
    9. Reg HAMILTON & Matt NICHOL, 2023. "One hundred years of dynamic minimum wage regulation: Lessons from Australia, the United Kingdom and the United States," International Labour Review, International Labour Organization, vol. 162(3), pages 407-429, September.
    10. Gordon Anderson & Lucy Kenner, 2019. "Enhancing the effectiveness of minimum employment standards in New Zealand," The Economic and Labour Relations Review, , vol. 30(3), pages 345-365, September.
    11. Jens Arnholtz & Chris F. Wright, 2023. "Labor Migration as a Source of Institutional Change: Danish and Australian Construction Sectors Compared," ILR Review, Cornell University, ILR School, vol. 76(3), pages 532-555, May.
    12. Chris F Wright & Stephen Clibborn, 2020. "A guest-worker state? The declining power and agency of migrant labour in Australia," The Economic and Labour Relations Review, , vol. 31(1), pages 34-58, March.
    13. Josip Franić, 2019. "Explaining workers’ role in illegitimate wage underreporting practice: Evidence from the European Union," The Economic and Labour Relations Review, , vol. 30(3), pages 366-381, September.

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    More about this item

    Keywords

    Enforcement of standards; low-paid workers; migrant workers; regulation; vulnerable workers;
    All these keywords.

    JEL classification:

    • J58 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Public Policy
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J81 - Labor and Demographic Economics - - Labor Standards - - - Working Conditions

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