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Shearers Association, AWU, trade blows over Ag Visa

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Nicholas Rupolo, Narrandera Argus

The Shearers Contracting Association of Australia has labelled the Australian Workers Union’s claims about the new agriculture visa as “illogical” and “unfounded”.

The AWU says the federal governments new visa to entice overseas workers into the agricultural sector will undercut wages and conditions for shearers and put young women out of a job.

The rift has occurred as a result of an email sent by the SCAA CEO Jason Letchford to its members.

The email said the SCAA envisages members “accessing some of the 700 ‘Non-skilled’ workers from an ASEAN country (most likely Indonesia but that is to be confirmed) who will arrive over summer”.

“The workers will be paid Shed Hand Award wages (not the higher rates),” it says. “This is not the only opportunity to engage overseas workers, just the first opportunity. Once the system is established, it’s likely you can engage the workers directly and therefore at a lower cost.”

In a media release the AWU National Secretary Dan Walton said it confirms the Agriculture Visa will “simply be used as a way for unscrupulous employers to cut wages and conditions”.

They claim the visa will take jobs from young Australians in regional towns with high unemployment and will also target young women and deny them a foot in the door of the shearing industry.

The AWU says more than 80% of roustabouts who are union members are women.

However, the SCAA returned fire telling the Narrandera Argus that their claims aren’t based in fact.

“That is an illogical, unfounded claim,” Mr Letchford said.

“The SCAA email explains to members that there is a new Ag Visa being implemented by the Federal Government.

“Employers need to pay the workers the Award plus ‘on-costs’ of approximately 17%-34% to a Federal Government approved Labour-Hire Company.

“The email explains these costs to members, warning them that employing these overseas workers is far more expensive than local workers.

“The email goes on to say that in future years, once the ‘pathway’ is more established, you may be able to employ the workers directly, at a lower cost by the removal of the approved Labour-Hire Company’s margin.

“The AWU’s media release purposefully and mischievously omits the fact that these workers come at a far greater cost in the first instance and the overall cost may be less in future years.”

In response, the AWU said wool production and prices going up indicates the labour shortage in the industry isn’t all its cracked up to be.

“The SCAA argument doesn’t hold up,” an AWU spokesperson told the Argus.

“The SCAA has claimed that for the past two years there has been a dire labour shortage because of the pandemic but the flock has been increasing and has been shorn.”

According to the Australian Wool Innovation Annual Report, Australian wool production (shorn greasy wool) was 284 million kilos in 2019/20, 294 million kilos in 2020/21, and is forecast for a modest rise to 310 million kilos in 2021/22.

“We want to see the visa changed,” the AWU said.

“If they are not going to scrap it, then the industry must prove there is a real labour shortage and pay market and industry rates, so as to not undercut regional jobs.”

The SCAA says the industry suffers from long waiting times and is under pressure to stem economic losses.

“Farmers will continue to struggle to have their flock shorn, when they need to have them shorn,” Mr Letchford said.

“Extensive waiting times leads to economic losses through stock dying from flystrike and their wool being ‘discounted when it grows longer then what is the optimal length for its processing.

“Therefore the shearing industry is under pressure to shorten these waiting periods caused by the worker shortage, that could result in farmers changing to meat-sheep breeds, that don’t require shearing, if shearing contractors can’t guarantee a timely shearing.”

The SCAA and the AWU have experience in the ring together with regular scuffles about wages, conditions and overseas workers.

However, some shearers might view their regular tiffs as wasting time.

Experienced shearer from RPC Shearing in Temora Rohan Cockfield has seen labour issues in the industry for over a decade.

“For some reason our growers, wool growers, have let the Australian shearing industry fall down through maintenance of wool sheds and simple things like running water,” Mr Cockfield told the Argus.

“We go to work and we get as much as a 20-litre drum of water, and we’ve all got to share that to wash our hands in and do all our stuff, it’s primitive.

“From that, when I try to encourage young people, they spend a couple days in the industry, they say you are mad, where’s the (air conditioning), toilet, and smoking room?

“I heard we might get labour from Indonesia, I have to train them because they aren’t trained, they’ve never been in a wool shed and know nothing of Australia.

The Ag visa doesn’t phase Mr Cockfield who says he wants to focus on getting longer term local workers.

“They can try it if it works it works,” he said in relation to the visa.

“I can’t see why we can’t try to encourage more Australians to do it, now that covid is finishing up, there are a lot of people who want to get out of the cities.

Narrandera Argus 18 November 2021

“I’d rather train an Aussie kid, they might not come back but at least they’ll go away with an experience.”

This article appeared in the Narrandera Argus, 18 November 2021.

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