CFMEU Construction national secretary Dave Noonan raised concerns after spending the past two days meeting Darwin construction workers and hearing their concerns about the section 457 visa scheme.
"What we are seeing is builders who are doing well out of the boom coming up with elaborate schemes to use guest workers to drive wages down," Mr Noonan said.
"The impact of these scams is driving down wages and conditions. Some employers have demanded significant wage cuts to workers and non-payment of superannuation is rife.
"These practices are also limiting opportunities for young Territorians to take up apprenticeships as foreign workers are actually cheaper, reducing the long-term benefits of the current building boom.
"And it is particularly concerning that guest workers are undercutting young Indigenous Australians who are attempting to gain a start in the construction industries."
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