Australia’s largest in-flight catering company is warning up to 150 flights per week could be affected by tighter restrictions on the amount of hours foreign students are allowed to work.
Virgin Australia will become the country’s first airline to offer baggage tracking for passengers, in an effort to make lost luggage a thing of the past. Initially the service will be trialled on Brisbane-Sydney flights with passengers required to upload the Virgin Australia app to keep tabs on their checked bags.
Gold Coast-based dnata said the federal government’s move to reduce the amount of hours workers on student visas can be employed to 48 hours per fortnight from July 1 will have a significant impact on its business and the employees themselves.
Dnata, which each year produces 27 million meals for major airlines including Qantas and Jetstar, is calling for an 18-month grace period so it and others in the hospitality sector can ramp up employment of local staff. The restrictions put an end to uncapped hours for student visa holders introduced during Covid-19 to fill labour shortages.
Dnata catering and retail chief executive Hiranjan Aloysius said the company currently employs more than 350 student visa holders, equating to 16 per cent of its workforce.
Mr Aloysius said 76 per cent of those currently work more than 48 hours a fortnight to cover their living expenses and tuition fees. “The government’s plans to reduce their allowable working hours to an average of 24 hours a week will place an undue financial burden on these employees who make up our business,” Mr Aloysius said.
Dnata catering and retail chief executive Hiranjan Aloysius.
He said the aviation industry was one of the first to be impacted by pandemic lockdowns and had been one of the last to recover. Travel is seeing strong signs of recovery from the pandemic, with February 2023 international departures at 70 per cent of February 2019 levels, and domestic travel seeing a 72 per cent increase in passengers in January 2023 compared to the prior year. Yet, certain areas in the sector, such as the airline, restaurant and catering industry, continue to face challenges with skills shortages.
“The government’s proposed changes will greatly limit our ability to meet the increasing demand for our services and contribute to the recovery of the industry,” he said.
The reduction of the student visa working hours would create a labour gap equivalent of 150 people for dnata, drastically increasing job vacancies and pressuring a stretched workforce. This means dnata will struggle to pack 26,550 meals a week.
“The federal government should take a considered approach to its visa overhaul, including providing substantial support and commitment to plug employment gaps, especially across lower-paid, lower-skilled roles,” Mr Aloysius said.
Dnata has seven facilities in Queensland that employ over 800 people and produce over 27 million meals for more than 56,500 flights each year.
The federal government is committed to the reduction with Minister Home Affairs Clare O’Neil saying student hours were capped again following feedback from stakeholders.
Labor is proceeding with plans to increase the cap on the number of visas Australia gives to skilled migrants each year to 195,000, in an effort to solve dire workforce shortages affecting many industries. The decision was made at last year’s Jobs and Skills Summit and was supported by the Coalition
“International education is an important Australian industry that has been heavily impacted by the pandemic,” said Ms O’Neil. “The outcomes from the Jobs and Skills Summit are geared towards supporting international education and giving the students who earn degrees in Australia the chance to contribute to the productivity of our economy.”