PALM, Working Holiday Makers and a trans-Tasman MOU are helping to overcome the wool industry labour shortage

With a new year underway, there has been some progress in plans to attract overseas workers.

This has meant, at times, the industry finds itself competing with New Zealand, as well as working with our nearest neighbour.

Australia and the United Kingdom have agreed to new arrangements under the Working Holiday Maker program and Youth Mobility Scheme but New Zealand has the upper hand in accessing skilled UK sheep and wool industry workers by allowing older people the opportunity to work there.

Australia's free trade agreement with the UK is progressing but although signed in December 2021, it is not yet in force.

Shearing Contractors Association of Australia secretary, Jason Letchford, said he was aware New Zealand has a more liberal free trade agreement with the UK than Australia currently does.

"Access to UK workers has mainly been through the traditional working visa system with an age limit in place."

"Obviously raising this age limit will mean access to more industry workers," Mr Letchford said

"Farmers need shearing done precisely when the sheep are ready.

"In a perfect scenario, access to skilled UK workers at the peak of demand would be ideal."

The Pacific Australia Labour Mobility (PALM) scheme allows Australian businesses to hire workers from nine Pacific Island countries and Timor-Leste when there are not enough local workers available.

Mr Letchford said significant hurdles were overcome last year including staff now being able to upskill from shed work to shearing.

"The upskilling issue, and the need to ensure full-time wages in a seasonal industry were both practical impediments for the PALM scheme to move forward," Mr Letchford said.

Mr Letchford said that while these impediments were now overcome, placements of PALM workers in the wool industry were unlikely to occur before the upcoming spring.

"The application process for employers is rigorous and includes strict employer financial, worker accommodation and condition requirements,"

"As an industry body, we are acutely aware of the need to make integrity checks of prospective employers, including accommodation standards and expectations," he said.

PALM scheme employers in the agriculture sector can be based anywhere in Australia, whereas all other sectors must be based in a regional or rural location.

AWI is refurbishing accommodation quarters at Falkiner in NSW, to be ready by the end of January.

The accommodation will be used for a range of training workshops, including for PALM workers.

However, the National Farmers Federation has reiterated its concerns about the level of assistance available to small businesses seeking to employ PALM workers independent of labour hire companies.

National Farmers' Federation President Fiona Simson said while resolving shortages along the supply chain was important, the Government now needed to dial up efforts to deepen the pool of available workers.

"We absolutely acknowledge that the full food supply chain is suffering worker shortages, and it's right to try and meet those needs," Ms Simson said.

"But this move should not come at a net cost to farmers, who have been feeling the pinch of these shortages most acutely over several years.

"Spreading an insufficient pool of workers thinner won't solve anyone's problem.

"What we need is a concerted effort to make it easier for small farming businesses to access the PALM by simplifying the bureaucracy that surrounds it."

Once approved to recruit under the PALM scheme, employers can access two cohorts of workers - seasonal workers (up to nine months) and longer-term workers (between one and four years).

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Last September, AWI and the Shearing Contractor's Association of Australia Shearer Wool Handling Training signed a memorandum of understanding with New Zealand's shearing training body, Elite Wool Industry Training NZ.

The agreement is another initiative to help alleviate the shortage of shearers and wool handlers.

The MOU allows training organisations to work together on shearing and wool handler training consistencies. This means if young New Zealanders come to Australia to shear, their shearing pattern and technique will align with Australian market requirements.

"This is a positive step to go forward with training," Mr Letchford said.

"We are working in consultation with New Zealand to ensure the best possible outcomes."

The primary difference for shearers coming from New Zealand is they generally use a shearing pattern that is not suitable for Merino sheep.

"We want New Zealand shearers to have confidence in their knowledge around shearing Merinos,' Mr Letchford said.

"Often, we find they prefer to shear crossbreds as they are more familiar with the style and pattern of shearing.

"This MOU will help everything align across our two countries."