Shearer prices in Australia above award rate due to bidding war

Shearers are being paid 15 to 20 per cent above the award rate with some making as much as $5 to $6 per sheep due to the shortage.

Darcy McCarthy from Kyneton shearing at Bradford Hills. Picture: Chloe Smith

A bidding war between farmers and contractors for in-demand shearers, means most are being paid 15 to 20 per cent above the award rate.

But shearing contractors believe the hype about the shortage of shearers isn’t completely accurate and the issue is more about all farmers wanting to shear at the same time — in the busy September to December period.

Shearer and contractor, Darcy McCarthy of McCarthy Shearing at Kyneton, said farmers all wanted to shear at the same time, and it was hard to keep the continuity of work for many of his staff.

Mr McCarthy runs two teams of shearers, mostly within one-hour of Kyneton, and said retaining people was what they found the hardest.

“We train young people and then tell them we don’t need them for a month in May for example, or they have to travel further afield.

“We aim to stay local and keep local people in local jobs. If farmers could shear at other times of the year, the continuity of work would help us keep people in the job for longer.”

Currently Mr McCarthy said they were paying shearers $4 per sheep, to “keep pace” with other contractors and the farmers were “happy enough” to pay it.

“I think a premium will start to be paid for spring shearing, otherwise the price will get more out of control,” he said.

The current award paid to shearers is $3.31 per sheep, however most are earning a minimum of $3.81 to $4 per sheep, with plenty of reports of $5 to $6 being paid.

Contractor, Brendan Sullivan of Austshear said everyone wanting to shear in the September to Christmas period was the issue and the competing rates.

“The problem is there is three or four different rates going around, but I think generally around the $4 mark should be where it’s at,” Mr Sullivan said.

Mr Sullivan said “every shearer or contractor” had gaps in their year, but the continuity of work needed to be addressed.

“Farmers need to shear at different times of the year, but I’ve been in the job 50 years and I have never seen a sheep not shorn.”

Shearing Contractors’ Association of Australia secretary Jason Letchford said as the “busy season” was just ramping up there was a fear there wouldn’t be enough shearers to go around.

“Covid-19 has brought to a halt the 500 seasonal workers from New Zealand (shearers and shed hands) we normally have,” Mr Letchford said.

He said while the award was $3.31, the “informal” rate adopted by most members of SCAA last year was $3.81.

“It’s not the final bid to get labour though, we have already seen in the western division of NSW rates at $4.20, but that’s because of the distance to travel and they shear less (because of the size and type of sheep), so they are paying a premium to the rest of the industry.”