It highlights the urgent need for legislation to address “rorts” within the 457 visa scheme, according to Construction, Forestry, Mining and Energy Union construction national secretary Dave Noonan.

More than 100 local workers had been made redundant at Boggabri Coal while six diesel fitters employed on 457 visas retained their jobs.

“The fact that a third of the local workforce in this regional community in northern NSW has lost their jobs overnight, yet temporary overseas workers have been retained, shows there is something seriously wrong with the current system,” Noonan said.

“The 457 visa was designed to plug genuine skills shortages, yet increasingly we are seeing Australian workers missing out because employers can bring in labour from overseas on cheaper rates of pay.

“Legislation requiring labour market testing as part of the 457 scheme — so employers have to demonstrate a genuine local skills gap — is essential to ensuring this program isn’t abused at the expense of Australian workers and their communities.”

The union has called on the federal government to urgently introduce legislation to require labour market testing as part of the 457 program, putting the onus on employers to demonstrate no suitably skilled local workers are available and providing a right of appeal for Australian workers rejected for the jobs.

CFMEU mining northern district secretary Grahame Kelly said the 457 visa program must also be tightened so when redundancies did occur, local jobs were protected.

“At Boggabri Coal we have strong evidence that proves the 457 workers that have been retained are less skilled than many of the local workers that have been laid off,” Kelly said.

“We think it is essential that when a downturn occurs in the industry, local workers are given priority.

“It is unacceptable that temporary overseas labour is being retained while locals go down the road.”

ILN sought comment from Boggabri Coal but no answer was received by publication time.