Farmer demand for Pacific Islander seasonal workers is falling — and it could be backpackers taking their place
Demand for Pacific Island seasonal workers is falling after a post-COVID boom in numbers — and backpackers might be taking their place.
New figures from think tank the Development Policy Centre show a 10 per cent drop in demand — about 3,000 workers — in the agriculture sector during the nine months to February.
Recruiters and the industry body representing fruit and vegetable growers also report a decline in employers seeking Pacific Island seasonal workers.
Richard Curtain, a research associate at the Development Policy Centre, said one reason for the change might be a new rule starting in July requiring workers receive at least 30 hours of work each week.
Another factor turning farmers away from Pacific Island workers could be greater numbers of backpackers in Australia.
Dr Curtain said backpacker numbers have reached pre-pandemic levels, and they are proving to be a cheaper option for farmers looking for workers.
“Backpackers are more flexible because they are employed on a casual basis,” he said.
“That gives the farmer a high level of flexibility to respond to downturns due to weather.
“That’s appealing, whereas seasonal workers are on a contract.”
Dr Curtain said for PALM workers on longer contracts in agriculture, employer demand has fallen even more.
But he said the drop in demand for Pacific Australia Labour Mobility workers appears confined to agriculture, and is not seen in other sectors hiring Pacific labourers, including the meat industry.
‘A lot of angst’
For workers, the PALM scheme is a chance to earn higher wages, save money, build homes, and pay school fees and other costs in their home countries.
Since the COVID pandemic, the annual number of labour mobility workers coming to Australia has exploded, reaching more than 30,000 in 2023.
Dan Dempsey, a Pacific labour mobility recruiter working for Empower SWR, said the best part of his job was helping ni-Vanuatu people with no income get farm work in Australia.
But he said lately his job has become increasingly difficult.
“There’s a lot of angst, I’m a member of the Vanuatu agents committee over here and we are all experiencing a massive downturn in numbers,” he said.
“This is a big concern for us, as I am spending most of my day now counselling workers who no longer have a job.”
While demand for Pacific agricultural workers traditionally increases in February ahead of the winter harvest, he said recruiters are reporting a 20-40 per cent drop in demand.
He fears with the requirements for working hours about to tighten, and with current PALM contracts set at nine months, the costs are now too much for employers.
Mr Dempsey said between 4,000-5,000 ni-Vanuatu workers could be made unemployed this season, if the trend continues.
He said that would be devastating for some families.
‘A challenge for industry’
Australian Fresh Produce Alliance chief executive Claire McClelland is calling for the federal government to keep the current rules, which require a minimum number of work hours but allow these to be averaged over a month.
She said the changes to minimum hours were a reason behind the drop in seasonal worker demand and more flexibility was needed for farmers.
“Obviously we have seasonal fluctuations in production and even a couple of days of rain or particularly cold weather could mean really significant delay to work on a farm,” she said.
“And that lack of flexibility actually means that the PALM scheme is no longer fit for purpose for highly seasonal work, and it poses a really significant financial risk to employers.”
Despite the falling demand, Ms McClelland said farmers preferred PALM workers for several reasons.
“The PALM scheme is really well supported by employers and particularly employees in horticulture, and the productivity of PALM scheme workers we know is greater than backpackers because typically they return to work year-on-year on farms,” she said.
The PALM scheme also lets farmers better plan ahead to meet their workforce needs in recruiting, she said.
The PALM scheme also lets farmers better plan ahead to meet their workforce needs in recruiting, she said.
SOURCE: ABCNEWS