The horticulture sector in Australia is currently navigating through a period of policy updates that could reshape its labor-sourcing strategies. The federal government's ongoing review of immigration policy is a focal point, with potential changes to the Working Holiday Maker (WHM) program drawing particular attention. Concerns have been raised over proposals that could require backpackers to extend their regional work commitments to qualify for visa extensions. Given that backpackers contribute up to 50% of the workforce during peak harvest periods, such changes could have a profound impact on labor availability.
Recent years have seen a series of policy shifts that have posed challenges for growers. These include modifications to overtime and piece rates, fluctuations in the status of the Ag Visa, adjustments to the requirements for UK backpackers, and an increase in bureaucracy associated with the Pacific Australia Labor Mobility (PALM) scheme. These changes have compounded cost pressures on growers, amidst difficulties in passing these costs through to the dominant retail duopoly.
Notably, the government has indicated it will not restrict the WHM visa to a single year, acknowledging the potential economic impact on regional Australia. However, the removal of the regional work requirement for UK backpackers and the introduction of administrative and financial burdens akin to the revised PALM scheme remain potential outcomes. These measures are being considered to protect backpackers from exploitation, with steps already taken to mitigate such risks, including the mandatory sign-off by growers on backpackers' 88 days of work and the introduction of a minimum wage for piece rates.
The horticulture sector, alongside APAL, advocates for a national labor hire licensing scheme and a public register of businesses prohibited from employing backpackers to further reduce exploitation risks. However, there is caution against overly burdensome measures, highlighted by concerns over escalating costs associated with the PALM scheme. The sector calls for more cost-effective labor solutions, including support for the backpacker and PALM schemes and introducing a new harvest visa.
The WHM program has evolved significantly since its inception in 1975, expanding in 2005 and 2019 to allow for extended stays linked to regional work. While initially focused on agriculture, the program's scope has broadened to include other industries. A notable development in 2024 was the exemption of UK backpackers from the regional work requirement, following a bilateral trade agreement. Concurrently, the government's migration policy review recommends a return to the WHM program's cultural exchange roots, potentially eliminating the need for backpackers to engage in regional work.
Source: APAL