Fears same job same pay changes could trigger PALM scheme ‘mass exodus’

Farmers have threatened to boycott the Pacific worker scheme in protest against the federal government’s same job same pay bill.

Farm leaders have warned Pacific Labour Mobility Scheme changes flagged by the Albanese government – including paying workers a minimum of 30 hours a week and pay parity with domestic workers – could trigger a “mass exodus” of producers from the program.

In flagging the farmer boycott, the National Farmers’ Federation said it would also encourage producers to “explore their options” before committing to the scheme despite the absence of a viable alternative after plans for an agriculture visa were scrapped last year.

It said the new guidelines, to be rolled out incrementally from July 1, would curtail business flexibility while the Australian Fresh Produce Alliance said the seasonal nature of farm work would mean many employers would be unable to carry a wages burden when work was unavailable.

NFF Horticulture Council spokeswoman Rachel Chambers said the body had warned government over several years “against putting all our eggs in the PALM basket”.

Farm workers from Fiji and Vanuatu. Photo: Paul Beutel

“Now, instead of making it easier for small business, we have a suite of changes that would effectively lock them out,” she said.

“Most alarmingly, some of these changes appear to be a proxy for wider ideological industrial relations reforms and fulfilling a shopping list of demands from the union movement.”

There are currently more than 400 employers approved within the scheme engaging over 38,000 workers, mainly in horticulture and meat processing, from nine Pacific nations.

Meanwhile, a senate estimates hearing has been told that 17 employers have been suspended from the PALM scheme so far this financial year, a steep post-pandemic increase compared to three suspensions in 2021-22 and one in 2020-21.

Federal Employment Minister Tony Burke. Picture: Jenny Evans.

The NFF said PALM’s rapid Covid-era growth had given the government a “very false sense that they can saddle up employers with even greater burdens” while not delivering skilled, permanent workers at the rate required.

The agriculture industry currently needs an additional 172,000 workers while recent working holiday visa changes will also reduce the number of backpackers available to agriculture.

Agriculture Minister Murray Watt recently reinforced the government’s commitment to trying to solve agriculture’s labour shortages with PALM workers partly in a bid to bolster regional diplomacy

However, the NFF warned that a shrinking pool of employers would likely only damage Australia’s reputation.

Employment Minister Tony Burke said the announced changes, that would also include greater safeguards for accommodation costs and provide Medicare access, were designed to prevent worker exploitation and ensure participants “have a good experience of living and working” in Australia.

“We have to act,” he said.

“These changes will make a huge difference for workers, who may have otherwise been mistreated.”

Nationals leader David Littleproud warned they would push up grocery prices as costs would be passed along the supply chain.

“It is now becoming even more unattractive for farmers to sign up to the PALM scheme and, at the same time, Labor is refusing to reinstate the Agriculture Visa,” he said.

Meanwhile, a Senate estimates hearing has heard 17 employers have been suspended from the PALM scheme so far this financial year, a steep post-pandemic ­increase compared to three suspensions in 2021-22 and one in 2020-21.

It also was told one labour-hire business allegedly underpaid 87 visa workers nearly $50,000 between 2018 and 2020, including overcharging for accommodation.

The Fair Work Ombudsman has so far been referred 22 cases this financial year.