The Western Mine Workers Alliance (WMWA), which represents Western Australian (WA) iron ore workers, has backed the Australian Government’s plan to limit its working holiday visa scheme, the group said earlier this week.
WMWA has also suggested that the Government support agricultural producers – who often rely on Australia’s working holiday scheme – by banning backpackers from using mining and resources projects to meet regional work requirements.
Backpackers can stay in Australia for up to three years on working holiday visas, as long as they work in regional sectors for at least 88 days in their first year and six months in their second, according to the Department of Home Affairs.
But the Australian Government will only approve 45,000 second-year renewals and 5,000 third-year renewals each year under its working holiday plan, Home Affairs Minister Tony Burke told the National Press Club on 17 September.
Many backpackers cycle between Australian mines on short-term contracts to meet their regional work requirements, according to a person with knowledge of the situation. Between 4000 and 5000 of them work in WA iron ore mines each day, up from less than 1000 a decade ago, Lithos understands. Others cycle through East Coast coal mines.
Backpackers can create operational risks because they are often unfamiliar with safety protocols, mine cultures, and mining equipment, Lithos has learned.
Backpackers are also less attached to mine workplaces than permanent employees and longer-term contractors, according to a person familiar with the situation. About three-quarters of them leave the mining sector after meeting regional work requirements.
Casual workers, including backpackers, generally do the same work as longer-term contractors and permanent employees, just with lower pay and fewer labour protections, according to a 2020 report from the McKell Institute.
“Casual [coal] mineworkers usually earn at least a third less than permanents, even with their casual ‘loading’. This is because labour hire companies … set pay rates at just above the Black Coal Industry Award minimum,” the report found.
By Avinash Govind