A mining industry lobby group has accused the Gillard government of stirring up xenophobia towards overseas workers through its changes to the 457 visa scheme.
Immigration Minister Brendan O'Connor has announced changes forcing employers to use the scheme only when they can prove a genuine shortage of domestic workers.
Unions say the changes are long overdue and will help protect the interests of local workers.
But some business groups believe the current laws are tough enough, and a mining group says the Government is stirring up prejudice towards overseas workers.
Michael Kenny reports.
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