Attracting overseas skilled workers for the Mining and Resources Sector
SkillSelect presentation at the London Expo
We’re all familiar with media highlighting skills shortages, particularly in the resources sector where there are not enough Australian workers available. A blog post by Tom (June 7 last year) explained how the introduction of Enterprise Migration Agreements would assist employers to secure overseas skilled workers in order to support this important sector of the Australian economy.
Building on this, from July 1 the government will introduce a new method for selecting skilled migrants, called SkillSelect to further help employers seeking skilled workers.
SkillSelect will provide registered employers with access to high quality, pre-screened migrants interested in sponsorship under the subclass 457, ENS and RSMS programs.
It is an efficient and easy to use system that will record intending migrants’ qualifications, work experience, the visas in which they are interested and whether they are willing to work in regionalAustralia. They will have evidence of their English language ability and most will have already had their skills assessed. SkillSelect will bring potential overseas workers to employers and facilitate contact between the employer and intending migrants. In addition, by matching the number of migration program places to the number of visa applications SkillSelect will streamline processing times and speed up the migration program’s response to business needs.
At a recent Skills Australia Needs event we staged in London, 28 Australian employers met 878 pre-screened skilled workers. As many as 500 overseas engineers and tradies will be sponsored to positions which employers were previously unable to fill through the Australian labour force.
Other recent events we’ve presented in Germany, Greece and Dubai have attracted interest from high quality engineering professionals, tradies, and healthcare professionals. Further promotional events are planned for the USA in May. Details will be provided shortly on the department’s website at: http://www.immi.gov.au/skillevents/upcoming-events.htm
You can read more by also visiting the SkillSelect website.
Regional consultation on Regional Migration Agreements
We last wrote about Regional Migration Agreements (RMA) in July. Since then staff from the Labour Market Branch have been travelling around the country speaking with representatives of regional areas that may be suitable for a RMA. We wanted to get an idea of people’s feelings about the program at a local level. We also organised meetings with representatives from Australian Government agencies, national unions and industry in Canberra and Sydney to brief them on the proposed program and give them the opportunity to provide feedback.
Broadly speaking, we think there are two labour market environments where RMAs can solve labour shortages. The first is regions experiencing critical short–term labour needs or rapid economic growth where local labour shortages are limiting business activity. The development and ongoing operation of the INPEX Liquid Natural Gas (LNG) project in Darwin is an example of this.
The second labor market environment we identified is one where growth is being hampered by short-term inelasticities in labour supply, for example, the strain on industries such as agriculture and manufacturing in the Goldfields-Esperance region of Western Australia, as local workers are attracted to jobs in resources projects in the Pilbara.
With this in mind we travelled to Darwin in the Northern Territory, Broome and Esperance in Western Australia and Gladstone in northern Queensland. Each of these areas is experiencing skills and labour shortages due to labour drain as locals move to nearby construction or resources projects seeking better pay and conditions. What’s left behind are skilled labour shortages that local employers have difficulty filling. In these areas a RMA could be an effective solution to backfill positions and strengthen the local labour market and economy while also encouraging training opportunities and initiatives for locals.
During consultations the main issues we covered were regional eligibility, the skill levels and occupations that will be available, the salary threshold for temporary skilled migrants and the training commitments that will be required.
The strength of the RMA program is its flexibility, which is why we are proposing to steer clear of hard thresholds, such as unemployment or labour force participation rates, to establish regional eligibility for the program. Rather than creating a ‘one-size-fits-all’ model, we propose that eligibility be based on the recommendation and endorsement of the relevant state or territory government. This endorsement will be based on a high level regional scan confirming that labour shortages exist and that attracting and retaining sufficient numbers of Australian workers has not been possible.
Feedback from some stakeholders, such as industry bodies and employers has been very supportive of this flexibility. Others, concerned with preserving job opportunities for Australians, proposed that a RMA be granted only after rigorous analysis to determine that there is a genuine need for overseas workers. This would entail job specific labour market testing and analysis which proves that employers have already made exhaustive attempts to recruit, train and retain local workers.
As mentioned in our previous RMA blog post, one of the major benefits of the RMA program will be that Australian employers will have access to some occupations that are not eligible under the standard program. This reflects a real change in Australia’s skilled migration program from one predominantly targeting highly skilled individuals to creating avenues for semi–skilled migrants.
For industries such as tourism and agriculture, allowing semi–skilled workers is critical as many occupations within these industries are categorised as semi–skilled and are not eligible under the standard 457 visa program.
For example, current data from the Department of Resources, Energy and Tourism indicates that in the tourist industry in Broome three of the occupations most in demand now and in the foreseeable future are bar attendants, waiters and café or restaurant managers. Allowing concessions on skill levels may enable tourism employers in Broome to use the program to fill these gaps.
For some stakeholders, especially those representing the tourism and agriculture industries, our proposal to lower the skill level to allow for a broader range of occupations was seen as not going far enough. They called for eligibility for all occupations regardless of skill level if demand and difficulty in employing Australian workers can be evidenced.
In contrast, other stakeholders expressed real concern that lowering the skill threshold would mean that jobs that could and should be done by unskilled or under–skilled Australians would be filled by migrants. Their position is that employers in these regions should be making more effort to recruit and train Australian workers to fill these positions.
We are working hard to finalise the RMA program and plan to release the guidelines in early 2012. Applications from interested regions will be accepted shortly after. In the meantime, let us know what you think. Do you believe RMAs will help to support regional centres and industries? Do you think your region needs a Regional Migration Agreement?
Ideas for a labour agreement for the tourism industry
The Department is working together with other government agencies to try to help address the shortage of workers in the Australian tourism and hospitality sectors. On 24 January 2012, we released a discussion paper asking for feedback on ideas for a template labour agreement that might meet the needs of Australian employers in these industries where standard immigration products like the 457 program aren’t an option.
Tourism injects about $35 billion a year into the Australian economy but is looking at a shortfall of about 36 000 workers in jobs including experienced waiters, chefs, bar attendants and hotel managers.
A labour agreement is a formal contract between the Australian Government and an employer which provides flexible immigration solutions underpinned by strong integrity measures. Where a number of employers in the same industry are seeking to sponsor workers in the same occupations, we can look at developing an “industry template” labour agreement for all employers in that industry, provided that they meet a series of important requirements. These include a commitment to the employment and training of Australians, paying market salary rates above the temporary skilled migration income threshold (TSMIT) and being able to demonstrate that there is a genuine need to employ overseas workers, having first exhausted all options to recruit Australians.
Before we can develop a template labour agreement, we ask for broad stakeholder input through consultations and discussion papers.
This discussion paper floats a range of questions to see what Australian employers in the tourism and hospitality sectors are really needing in terms of assistance in meeting their skilled and semi-skilled worker needs. We are asking for input on a range of topics including occupations, salaries, qualifications, English language ability, training, and risk mitigation.
There is a media release about this at: Minister for Immigration and Citizenship
You can view the discussion paper here: Tourism Labour Agreement Discussion Paper
There is an article about it in the Financial Review at: The Pub with no Aussies
The discussion paper is open for comment until 16 March 2012.
Agriculture and migration
Overseas workers are used by nearly every single industry in Australia. From manufacturing to mining, Australian businesses employ migrants to supplement their labour force where necessary.
One of Australia’s largest and most historic industries is agriculture. According to the National Farmers Federation, there are over 135,000 farms in Australia today. These farms and associated sectors contribute to 12% of Australia’s GDP.
Overseas workers play a small but important part in the agricultural industry. By way of example, over 450 skilled overseas workers in the agricultural, forestry and fishing industry, such as farm managers, entered Australia in 2010-11 through the temporary 457 visa program. In the last three years, 300 skilled farmers or managers have arrived as permanent residents through the Regional Skilled Migration Scheme (RSMS). These skilled workers come from very different locations, from South Africa, to the Philippines and India.
But skilled workers are just one aspect of the role migration plays in the agricultural industry. Thousands of backpackers who arrive as working holiday makers travel around Australia, following the harvest trail or other seasonal work. The working holiday maker program assists industries like agriculture by allowing a second visa to be granted if the person worked in specific work in regional Australia.
An initiative introduced in 2008, the Pacific Seasonal Worker Pilot Scheme, provides overseas workers from the Pacific to work in the horticultural industry. These workers undertake a range of work such as harvesting fruit, vegetables and nuts, pruning trees and vines, thinning, planting, and working in on-farm packing sheds.
While migration programs are designed to be secondary sources of labour, with employers looking to Australian workers first, gaps can be filled by overseas workers.
If you would like to participate in a discussion about skilled migration and agriculture, AgChatOz will be hosting a conversation on Twitter, this Tuesday the 2nd of August, between 8pm and 10pm (Australian Eastern Standard Time). Check the AgChatOz site later on for a list of questions that will be discussed.
Below you can see the list of questions that will be discussed, just follow the hash tag #agchatoz between the hours above and contribute along if you feel like it!
Regional Migration Agreements
The Australian labour market is diverse. Here at Labour Market Branch in Department of Immigration and Citizenship, we often hear feedback that local labour conditions are not comparable to national conditions. This can be particularly acute for regional areas and this is one reason why concessions exist for regional employer visas such as the Regional Sponsored Migration Scheme (RSMS).
It is from this tradition that the Australian Government has announced a new regional initiative, Regional Migration Agreements (RMAs). These agreements will recognise the particular skilled migration needs of regional areas, taking account of unique local particulars. RMAs can be tailor made to bring together the views of employers, local and state governments and unions to cooperate in addressing local labour needs (and please note, RMAs are not a new visa).
Like all our skilled migration programs, RMAs are designed to support economic growth while ensuring local workers remain the first choice for employers. Training initiatives and future planning that focus on the needs of the local regional area will be an integral part of all RMAs. It is important to realise that RMAs are only a temporary solution, designed to supplement labour supply only where there are not enough local workers. As Minister Bowen said regarding another migration agreement for the resource sector, Enterprise Migration Agreements, the ultimate focus must be on local skills and training.
Benefits
The key benefit of RMAs will be the ability to negotiate concessions from standard skilled migration programs (such as the temporary 457 program). For example, some common semi-skilled occupations, which are not available under the 457 program include locomotive driver, mining labourer or plant operator. Under a RMA, these semi-skilled occupations (and many others) could become available for local areas that demonstrate a need in the local labour market that can’t be filled by local workers.
A secondary, but also substantial, benefit will be the efficiencies gained by streamlining the labour agreement process. Currently, labour agreements need to be negotiated with employers and they can be quite complex, requiring individual negotiation with each business. To alleviate this, RMAs will have a two-tiered structure. Negotiation about labour market testing and local conditions will occur up front so each employer does not have to duplicate similar information. The result will be a streamlined agreement for each employer—reducing delays.
Timeline
The department is currently discussing RMAs with other federal government agencies. After this, we hope to engage with a broad audience—regional business groups, local councils, state governments, members of the general public—to hear feedback on the proposal. These discussions will help the department to develop RMAs. Two central requirements for RMAs will be the structure and eligibility.
Structure: The government has already announced that RMAs will be negotiated between the government and representatives of the local area. Individual local employers will then directly sponsor workers under the terms of the RMA.
RMAs are designed to be flexible to suit the particular needs of local areas. The department will be asking about key aspects of RMAs, such as:
- The sort of training proposals that will be acceptable and the way initiatives are identified.
- The type of evidence required to demonstrate a need for semi-skilled overseas workers.
- The responsibility local authorities hold and the duration of an RMA.
There are many questions that require answers before negotiations between local regional areas and the government can occur.
Eligibility: The government has already released the high level focus for RMAs. The agreements will target high growth regional areas where local labour is in short supply.
In consulting further on RMAs, specific eligibility requirements will be established around issues like:
- The level of growth required to qualify.
- The type of growth best used as a measure—wage expenditure, general labour market or total economic size.
- The type of local authorities eligible to sign up to an RMA.
These questions do not necessarily have a right or wrong answer. Different regional areas will have different local conditions, requiring the need for unique approaches across Australia.
We hope to have the questions answered by the end of this year. After that, it is expected that individual RMAs will be negotiated from early 2012. Stay tuned for further information.
