The impact of the China-Australia Free Trade Agreement on Australian job opportunities, wages and conditions

This report focuses on China-Australia Free Trade Agreement's (ChAFTA's) provisions on labour mobility. The first area of controversy is whether the ChAFTA will enable Chinese workers to replace local workers in the Australian labour market. The second area of controversy is whether the ChAFTA allows for, or will result in, Chinese workers receiving poorer wages and conditions than local workers in the Australian labour market. This report is structured in two parts. Part one considers the three provisions in the ChAFTA that provide the opportunity for Chinese workers to access the Australian labour market. Part two of the report examines two key issues concerning the ChAFTA's impact on Australian labour standards. The first issue pertains to the role and importance of labour market testing in determining the composition of Australia's migrant worker intake. The second issue concerns whether temporary migrant workers from China can and/or will be paid less or treated differently to local workers performing equivalent jobs in the Australian labour market.

The report finds the ChAFTA greatly increases the access of Chinese workers to the Australian labour market. It is recommended that the Australian Government use its enabling legislation to clarify that labour market testing will apply to certain categories of Chinese workers. Secondly, the report also finds that there needs to be greater protection to ensure Chinese workers are not used as a way of undercutting local wages and conditions. Thirdly, the report finds that the current regulatory framework for Investment Facilitation Arrangements (IFAs) requires reform in order to ensure it is a legislated framework that mandates labour market testing, market salary rates and the achievement of greater public accountability and transparency around IFAs.

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