Critics say the plan to allow foreign workers to access temporary visas to work on oil rigs would have allowed migrant workers to be exploited at the expense of Australian jobs.
The Coalition planned to remove a requirement put in place by the Gillard government which would force oil and gas rig workers from abroad to have a 457 skilled migration visa.
Labor, the Greens and the Palmer United Party last night blocked the move in the Senate.
Greens Senator Adam Bandt this morning said the move would protect local jobs and wages.
"Last night, the Senate stood up to the government and disallowed a regulation that would have seen workers in Australian waters, working on Australian projects, extracting Australian oil and gas, not having to be paid Australian minimum wages and conditions," he said.
Earlier, Assistant Minister for Immigration Michaelia Cash slammed the decision, saying it put the jobs of thousands of foreign workers in jeopardy.
"Labor senators knowingly placed thousands of Australian jobs at risk," she said.
The decision means the visas of temporary workers may no longer be valid.
The Australian Greens moved the disallowance motion, claiming the temporary visas are allowing migrant workers to be exploited at the expense of Australian jobs.
Labor and the Palmer United Party supported the motion for similar reasons.
Paddy Crumlin, National Secretary of the Maritime Union of Australia, welcomed the Senate’s move in a press statement.
"Sensible Senators know that opening the back door to cheap foreign labour isn’t the answer,” he said.
“We need to maintain our maritime skills base and ensure the viability of Australian jobs in the offshore sector.”
But a resource industry employer group called the decision ill-informed and ill-considered.
Australian Mines and Metals Association executive director Scott Barklamb says Australians working on offshore oil and gas rigs rely on their foreign colleagues.
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