Stilwell, Frank; Grealis, Ann --- "Refugees Working: Afghans in Young, NSW" [2003] HRightsDef 3; (2003) 12(2) Human Rights Defender 3

Afghans in Young, N.S.W

Frank Stilwell and Ann Grealis

The NSW country town of Young used to be called Lambing Flat. It was there, on November 13th, 1860, that diggers on the goldfield drove about 500 Chinese miners away, destroying their tents, Further assaults by vigilante groups followed, culminating in a ‘roll-up’ on June 30, 1861 when a mob of up to three thousand people violently attacked the remaining Chinese and their property. As a direct result of these disturbances at Lambing Flat, the colonial government of NSW passed the 1861 Chinese Immigration Act. This was a precursor to the infamous White Australia Policy.

Young is currently the focal point for a very different, and notably more positive, experience with workers of Asian origin. Starting in mid 2001, Afghan refugees came to the town to work in the local meatworks. From an initial two dozen their numbers swelled to a peak of nearly ninety in late 2001. Some left in April 2002, following the closure of the nightshift at the meatworks, and at the start of 2003 about 45 Afghan refugees remained. All are male, mostly aged between 20 and 40, and typically holding Temporary Protection Visas that give them the right to live and work in the country for three years.

The Afghan refugees coming to Young are Hazara people, an ethnic minority which has been subject to discrimination in Afghanistan long before the Taliban regime came to power. They have fled appalling treatment of themselves and their families, seeking refuge in a safe country and the opportunity to work, hoping in most cases to establish a case for permanent settlement and family reunion.

Have the Afghan refugees been good for Young?

Local opinions vary, but the dominant view seems to be that their contribution as workers has been valuable and that no significant social problems have arisen. The Mayor of Young and all his fellow councilors have been publicly supportive of the presence of the Afghans living and working in town. The Mayor invited all local citizens to put their views in writing, compiling them into a loose-leaf book at the Council offices. Of the 119 responses, about half were critical of the Afghan presence, half were supportive and just 4 were undecided or seeking further information. The favourable views were typically expressed at greater length and with greater sophistication of language than the critical views.

Perhaps the most clearly positive aspect of the Afghan presence in Young is economic, focussing primarily on their work for the largest employer in the area, Burrangong Meat Processors. BMP employs around 270 persons and services both national and international markets. It has been a very successful business in a competitive industry, securing an expanding market share at a time when abattoirs in some other regional centres have closed. BMP has one recurrent problem though – securing an adequate workforce. Working in an abattoir is hard physical work, for modest remuneration. It is not the first choice of employment for many people. Rates of labour turnover are quite high and absenteeism is also a problem throughout the industry. BMP has sought extra workers by getting Mission Employment, one of the agencies comprising the Federal governments ‘Jobs Network’, to advertise vacancies at the meatworks nationwide. It was in response to those advertised vacancies that the Afghan refugees first started coming to Young.

Economic impacts

The economic impact of the Afghan refugees in Young results, in the first instance, from the income flows generated by their employment at the BMP. Wages are paid at a little above the award rate. An estimate of the total wages paid to the Afghan workers over the eighteen month period is $2.8 million. That means the total net income, after tax, received by the Afghans working at the abattoir would be about $2.25 million. Probably something of the order of 60-75% of these incomes is spent locally. The Afghans in Young are renting flats and houses in the town. Their housing conditions are simple, yet clean and tidy, containing basic consumer durables, including radios and televisions, as well as second-hand furniture. Some have cars; and a number have mobile phones. They are spending on inexpensive clothing and a variety of food and drink.

Not all the income generated by the Afghan workers re-circulates locally. Recently arrived migrant groups, and refugees in particular, usually try to achieve relatively high saving rates. The Afghans in Young have evidently worked hard with this intention. How much of these savings has been repatriated to families in Afghanistan or in refugee camps in Iran and Pakistan cannot readily be known, but it seems likely to be a lower proportion than would normally be the case for refugees. Many of the Afghans in Young have no contact with their families, not knowing where they are, or indeed even whether they are alive, as a result of the terrible turmoil that has beset their home country. Moreover, banking facilities in Afghanistan are limited, outside the capital of Kabul: transferring money is not a simple matter, often requiring the use of private intermediaries of uncertain reliability. Of the estimated total net income generated of $2.25 million, it seems likely that between $1.3 and $1.6 million re-circulates in the form of additional regional expenditures. To that must be added the extra expenditures resulting from the more buoyant profits generated by BMP as a result of the Afghans’ presence, pushing the total income generated into the $1.6 – $1.9 million range.

What is the ‘regional multiplier’ effect arising from these various expenditures? Essentially, the issue is how much the additional incomes add to further economic expansion. That depends on the density of local industry linkages: these are strengthened by BMP’s policy of sourcing its material requirements from within the region. A conservative estimate would be a regional multiplier of 1.5, meaning that for every additional person employed in the local economy another half a job is generated indirectly. On that basis, it seems likely that the Afghan presence has produced a total additional regional income of between $2.4 and $2.7 million over the 18 month period.

Against these estimated economic benefits have to be set any ‘displacement’ effects. In other words, the estimated regional impact would be lower to the extent that the presence of the extra Afghan workers foreclosed other possible regional developments or displaced other employees. There is little evidence of any such negative effects in practice. The wage rates paid are uniform for all workers, so there has been no problem of ‘wage-cutting’. As for job displacement, it seems that, over the medium term, no local employees who want to work regularly at the abattoir have lost their jobs directly as a result of the Afghans being employed there. Among other means of addressing continuing labour shortages, BMP continues to scour neighbouring regions for suitable employees by sending its free bus to transport workers to the abattoir.

Of course, the impact of a group of workers on a regional economy is not purely a matter of income and expenditure flows. There are also effects that operate more indirectly and in a more long-term manner. For example, there are the effects on productivity. The renowned strong work ethic of the Afghan workers in Young is pertinent in this respect. To quote one of the contributors to the Mayor’s book of comments: “I’ve spoken to a number of the local staff at the abattoir who have nothing but praise for the Afghani men working amongst them. Their work ethic is extremely high, thus setting a wonderful example to other workers.” Undoubtedly, the Afghans have proved to be good workers with low absenteeism rates who are valued in helping the shifts on which they work reach their production targets.

The effects on the reputation of the town are also important. Young has received quite a lot of national publicity as a result of the acceptance of the Afghan refugees. The multi-ethnic character of the BMP workforce features in publicity material by the Anti-Discrimination Board of NSW. One of the other contributors to the Mayor’s book of comments said “[I] am in the process of purchasing property on the Central Coast. When told I was from Young the Real Estate agent said that the positive exposure of our acceptance of refugees was worth a million dollars of advertising.” Were the Afghans able to stay on in Young they could also be expected to contribute to a rather more cosmopolitan character of the town, for example by opening restaurants and other small businesses. There is evidence from elsewhere that professional people are more easily attracted to places where there is a cosmopolitan lifestyle. This could help give Young the edge in attracting professionals to the town.

What has worked to make this a success?

Often success comes down to human factors. This experiment of a large ethnic group of traumatised men with limited English language coming to work at the abattoir is unlikely to have succeeded without their acceptance by fellow workers and extra help and support from management. In the latter respect what seems to have been important was the commitment and support given to the Afghans in smoothing out work and practical difficulties by the Human Resources Manager who BMP employed until late in 2002. Some viewed this as favouritism, and management at BMP has since moved away from providing extra support, believing that this is the fairest management practice for the workforce overall. It remains to be seen if this adversely impacts on the retention rates of the Afghan workers.

The mobilisation of social capital also is a significant factor. Social scientists in recent years have recurrently stressed the importance of strong social networks in a locality as the basis for economic development. In the case of the Afghans in Young there is evidence of a strengthening of that social capital, as local community groups, the Shire Council and local businesspeople have worked together to make the experiment workable. TAFE teachers, volunteer tutors, the local library staff, Amnesty International organisers, the Mayor and his staff and many others have come together in cooperative activities for this purpose. An Afghan ‘cultural evening’ organised at the neighbourhood centre attracted 130 people. Strong social bonds have already been created between the Afghans and some of the locals in Young who visit them in their homes and invite them to theirs. The development of social ties, not only between the Afghans and the local people but also among the local community groups themselves, has evidently been an important element in building effective social cohesion.

The Mayor of Young observed that one of the benefits of Young hosting the Afghan refugees for the region was that it gave the Young residents, in particular children, an opportunity to have a richer social perspective outside of the region and a connection with world events. He thought that the support of local schoolteachers was very important in children making the most of this learning opportunity of multiculturalism.

Long Term Implications

What of regional dynamism in the longer term? For regions to survive and prosper they require population renewal and growth. Achieving this is problematic as, given the choice, the majority of immigrants ‘vote with their feet’ and settle in the cities. Regional and rural life requires settlers to be tough and resilient in order for them to survive relative hardship and make a productive contribution to the local economy. Who would be tougher and better suited for the region (and nation) than people who have proven their strength by surviving generations of oppression as an ethnic minority in their own country, escaped from their war-torn homeland by traveling on foot over rugged terrain, taken the risk of sailing in a crowded boat on the high seas, endured refugee camps, found their own way to Young and are now coping with family separations, loss and traumatic memories while supporting themselves working in the abattoir and then attending English classes after work? The Afghan refugees in Young have shown their qualities as family minded, hard working, law abiding and peaceful people who are trying their best to fit in with regional Australian cultural ways. The Young Shire Council has recognised the future potential of the Afghan refugees for the region and has been active in trying to make their situation permanent.

If the Afghan refugees were permitted to convert to permanent residency, many would stay in Young and contribute to its further economic development. Some would move on to employment in other localities, including the major metropolitan areas, of course, but the positive experience many have had in Young evidently has established a strong preference for local settlement. Many of the Afghans in Young are from rural backgrounds, familiar with working in a small farm or small town business situation.

Many would bring their wives and children to settle in the region. That would change the ratio of workers to dependents, of course. It would help redress the demographic imbalance characteristic of country towns elsewhere where there is a drain of young people seeking urban employment and social opportunities. It would help maintain demand for locally provided services. It would tend to reduce savings rates and increase local expenditures, thereby having yet more positive regional multiplier effects. Many would buy houses, develop their skills, and start new local businesses.

The evident commitment of the Afghans in Young to learning English is indicative of this general orientation and commitment: 51 of the Afghan refugees were enrolled in English language courses at the local TAFE in 2001. Some have evidently been adding a distinctively Australian flavour to their language education. ‘No worries, mate’ were the first words heard by the authors when visiting the Afghans in their homes.

However, the Federal Minister for Immigration remains adamant that the Afghans should not be permitted to stay beyond the expiry of their temporary protection visas. Replying to a letter written by the Mayor to the Federal Immigration Minister, suggesting that the Afghan refugees employed at the meatworks in Young should be considered for permanent residency in Australia, the Minister reaffirmed the policy that: ‘TPV holders are granted interim protection in Australia for three years. They are expected to leave at the end of that time unless there is a need for ongoing protection. It is not possible for Afghani TPV holders who are not refugees to remain in Australia.’ The Federal Government is currently offering $2000 to any of the refugees who are willing to leave Australia by June 2003. Evidently, the Government’s view is that the national interest would be better served by the departure of the Afghans, notwithstanding their humanitarian claims and productive economic effects.

Conclusion

There is a common perception of refugees as a burden on society: the case of the Afghans in Young suggests a different reality. Even as short-term visitors, in traumatic circumstances of being refugees from terrible tragedies affecting their families and friends, and facing uncertain futures, the Afghans in Young have made valuable economic contributions. They have made a valuable direct contribution to the productive requirements of the region’s largest business and generated various indirect economic benefits. There are also important lesson about how to create the social conditions that make an experiment like this productive and generally advantageous. A positive economic role, clear acceptance by local political leaders, a supportive role by human resource management at the workplace and strong efforts by local community activists to make the visitors feel welcome are evidently the keys.

As one of the contributors to the Mayor’s book of comments noted, ‘Young has come a long way from the 19th Century abuse of the Chinese in the Gold Rushes.’ (Incidentally, it now has a ‘sister city’ relationship with a city in China and a Chinese gardens in a bushland setting.) The town of Young’s acceptance of the Afghan refugee signals the possibility of a ‘win-win’ situation, splicing the hopes and aspirations of refugees who have suffered so much with specific contributions to regional development in Australia.

Frank Stilwell is Professor of Political Economy at the University of Sydney.

Ann Grealis is a Senior Social Worker