Big reforms to migration could significantly cut the number of workers on farms and hit the bottom line of regional manufacturers, Australian meat processors and farmers say.
In response to a wide-ranging review of the migration system, the federal government is proposing to implement several changes including an increase to the minimum wage for temporary skilled migration income threshold from $53,900 to $70,000.
Other changes include no longer binding migrants to one employer and offering all skilled migrants a pathway to permanent residency.
Meat processors and farmers alike are worried about the changes that will push up salaries for skilled workers and significantly cut the number of backpackers working on farms.
Both the Australian Meat Industry Association (AMIC) and the NSW Farmers Association said they could see some positives but were worried about the changes
"We commend the government for recognising the need for visa reform," AMIC chief executive Patrick Hutchinson said.
"But we need assurances that these reforms will work for the meat industry and are economically viable, or we will be in an even worse position than we are now."
Mr Hutchison said the industry needed more information to understand the changes.
"How does it impact meat industry labour agreements and enterprise bargaining agreements?" he said.
He was concerned about government intervention in the sector.
"We don't want to see a misguided attempt to artificially intervene in the jobs market … to placate Unions NSW."
Mr Hutchinson said the labour shortage had been affecting the sector for a decade and overseas workers were needed because Australians did not want to do the work.
"We want to hire locals, but if there aren't enough people to hire, then we have to go to the international workforce — we don't want to cruel ourselves here."
Changes could lead to big cut in backpackers on farms
Farmers are worried changes to the backpackers' visa could mean that thousands of workers will be lost.
The current scheme allows backpackers to extend their stay by a year if they work in regional areas for a minimum of 88 days, but that could be scrapped.
Workers may no longer be bonded to employers
NSW Farmers Association workplace relations adviser Gracia Kusuma said 15,000 backpackers worked in agriculture in the last six months of 2022, based on government figures, and removing that requirement at a time of critical worker shortage would be significant.
She was also concerned about the plan to give overseas workers the right to switch employers.
That change is designed to protect workers from exploitation, but Ms Kusuma said there had to be some protection for employers.
"We agree that temporary migrants should be able to remove themselves from exploitative employers," she said.
"But there should be protection for employers as well.
"We want to restrict that so they can't move at will, once they're in the country — there has to be some justifying reason."
The NSW Farmers Association is also troubled by the plan to raise the income threshold for skilled workers.
Farmers will often provide accommodation, transport, and food as part of a package for an overseas worker and the association says that should be recognised.
Unions want more
Unions NSW secretary Mark Morey said lifting the salary floor to $70,000 was a positive step but the government should go further by requiring migrant workers to be paid above the median annual wage to encourage employers to only hire migrants when they could not employ locals.
He acknowledged that Australia would always need unskilled workers but wanted to see exploitation stamped out.
Mr Morey wanted to see a "firewall" between people who were reporting problems to the Fair Work Ombudsman so that information was not handed on to [the Department of] Immigration.
"Workers are often threatened with cancellation of visas if they don't comply with what the boss is saying, and often it's illegal," he said.
"People should be able to remain in the country while prosecutions go through."
