WA graziers, miners call for access to overseas skilled workers

WA’s rural sector has called on the federal government to allow it access to skilled overseas workers as it struggles to match the hefty wages offered by the rich iron ore mines.

Skill shortages are still hurting the mining sector and other key parts of the economy, according to West Australian business leaders, who again called on the federal government to allow more skilled overseas workers to enter the country to help clear a backlog of work.

Critical skills shortages have reined in production and pushed up costs across the industry ever since the Covid pandemic helped create a mini-boom in the Australian mining sector while also restricting access to the international pool of skilled workers.

But, despite recent signs of an easing in tight labour markets in WA, business leaders speaking at The Australian’s Bush Summit in Perth on Monday said more needed to be done to help local companies attract skilled international workers to fill gaps in the local talent pool.

Pastoralists and Graziers Association president Tony Seabrook told delegates the state’s agricultural sector was still struggling to compete with the wages on offer in WA’s rich iron ore mines, putting enormous pressure on farmers and graziers across the state.

“Every mechanic or truck driver, they’ve all gone north, and we can’t match those salaries. So what I’d say to governments today is give us access to overseas skilled labour,” he said. “A friend of mine is up in the Philippines trying to find welders. He can find the welders, that isn’t the problem – getting them here is the problem.”

Mr Seabrook’s comments came despite mining bosses suggesting the skills and labour crisis is starting to ease.

Northern Star Resources boss Stuart Tonkin said last month he believed cost and wage inflation in the sector had “stabilised”.

Major Pilbara miners such as Rio Tinto and Fortescue Metals also flagged unit mining costs as running broadly steady over the next year, or incorporated relatively minor inflation in their cost guidance.

Association of Mining and Exploration Companies chief executive Warren Pearce said his members – which generally make up the smaller end of the sector – also believed an increase in skilled migration was needed to ease skill shortages.

“It’s got a little bit better, but in truth it’s very difficult for our industry to fill the roles and our needs. And equally, you’ve got a pull between the large companies and the smaller companies,” he said. “When you’ve got a constrained labour force here in Australia, you’re going to need to be able to pull from overseas workers. But also, you need to be able to bring in skilled workers from overseas to train Australians in new roles.

“One of the ones that frustrates me immensely is exploration drillers – you need a qualified experienced driller on site. You’ve got entry level jobs where people who are 18 to 21 can get a start in $100,000 jobs, but without qualified and experience staff on site, you can’t put them safely into the industry.”