China trade deal 'needs tough labour test'

Trade unions have told a parliamentary inquiry that rigorous labour-market testing in the China free trade agreement is more important than ever with unemployment remaining stubbornly high above six per cent.

ACTU assistant secretary Scott Connolly insisted unions were not anti-trade and recognised the value of low tariffs, increased exports and free access to overseas markets.

"We have no objection to overseas workers from any country being employed in Australia provided there is a genuine, verifiable evidence through labour-market testing that the employer has not been able to find a suitable qualified Australian to do the job," he told parliament's treaties committee in Canberra on Monday.

Master Builders Australia boss Wilhelm Harnisch said there was no need for labour market testing to be included in the agreement as there was in-built bias towards Australian workers because of the cost of employing foreign workers.

"The natural tendency from a business perspective is to look for Australians to fill the vacant positions in the first instance," he told the hearing.

Mr Connolly later told reporters the free trade agreement should be renegotiated, not simply backed up with stronger migration laws.

The deal was a "dud" in relation to labour market testing and skills assessment testing.

"The black and white text in this agreement makes it abundantly clear that these provisions aren't provisions that can be dealt with in letters or concessions and potentially even acts of parliament," he said.

"These are matters that are so pivotal to the future of our country and our workforce that nothing less than a renegotiation of the agreement is what is required."

A senior immigration department official told the hearing labour market provisions in the China agreement were already included in a number of other FTAs.

The absence of labour market testing did not mean a right of entry, first assistant secretary David Wilden said.

Normal processes for the nominations of foreign workers would have to be followed.

There must be evidence an employer had gone to the local labour market and state reasons why no Australian worker was suitable, Mr Wilden said.