THE LABOR Party has been heavily criticised by the Australian Government and the broader business community for ‘peddling myths’ about the new Chinese free trade agreement, including its support for trade union claims that the deal represents a threat to Australian jobs, wages and conditions.

As unions, led by the CFMEU, campaigned heavily against the China-Australia Investment Facilitation Arrangement (IFA), the federal Opposition joined in the chorus of anti-IFA discourse at the ALP’s National Conference last week.

Speaking at the conference, Labor Senator Penny Wong repeated rhetoric that there are insufficient requirements and safeguards around the labour provisions within the China IFA.

“…it is quite clear that to enter an IFA you do not have to demonstrate that you have engaged in what is called Labor Market Testing, that is to ensure no other Australian could do the job…and I think the agreement lacks critical safeguards when it comes to skills assessment for occupations such as electricians,” Senator Wong said.

Criticising her Senate sparring partner’s comments,  Assistant Minister for Immigration and Border Protection Senator Michaelia Cash said the ‘scare campaign’ against the historic free trade deal had been ‘blown out of the water’ and that the ALP were ‘peddling myths’.

“This historic agreement presents enormous opportunities in a range of industries which will stimulate domestic job creation,” Minister Cash said in a statement.

“There are multiple requirements and safeguards to ensure Australians are given first opportunity in the recruitment process.

“Labour market need must be demonstrated, employers must show first opportunity has been offered to Australians, annual reviews will be conducted, training for Australian employees will be delivered and sponsorship obligations will be enforced.”

Speaking to The Australian newspaper, AREEA chief executive Steve Knott urged the Opposition to stand by the Australian Government to support an agreement that will deliver greater economic prosperity and job creation to our country.

“It’s disappointing to see Bill Shorten and his ALP colleagues support another round of misleading, bordering on xenophobic union rhetoric on the role of skilled migrants in this country,” Mr Knott said.

“Such statements will only serve to threaten Australia’s reputation as a mature, welcoming and stable place to do business. Within a globally competitive marketplace, we must do everything we can to further Australia’s relationships with our key trading partners.

“The IFA requires Chinese companies to be registered in Australia and therefore to comply with all Australian employment laws and market rates and conditions. The inference that these international skilled employees could be subject to inferior occupational health and safe conditions or standards is similarly untrue, mischievous and unhelpful.”

Mr Knott also reiterated the position of the resource industry in today’s press, which focused predominantly on former ALP trade minister Simon Crean’s input into the debate, calling on Mr Shorten and the Labor frontbench to support the China trade deal.

Last week the Department of Foreign Affairs and Trade published a fact sheet about the Free Trade Agreement, clarifying that the deal does not change the required skill levels for Chinese visa applicants. The fact sheet can be accessed here.