Severe skills gaps and further restrictions on skilled migration threaten the fundamental viability of Australian manufacturing at a time when the Government is trying to build a “Future Made in Australia”, the Geelong Manufacturing Council has told a Senate inquiry.
In a submission to the Senate Legal & Constitutional Affairs Committee, the GMC urges a series of amendments to the current Migration Amendment (Strengthening Sponsorship and Nomination Processes) Bill 2024 to ensure allowance is made for regional and sectoral labour market variations and challenges.
The submission recommends:
- Where skills shortages exist and local awards sit below the skilled migrant income threshold, introduce an exemption.
An example of an occupation in extreme national shortage is a welder. Weld Australia has estimated Australia will need to double the number of welders we currently have – 70,000 more – to successfully transition our energy infrastructure to renewables. This is a major challenge, especially in the regions, and not easily met through attracting and training local people.
Small and medium-sized manufacturing enterprises are currently in desperate need of skilled welders. Our national priorities require the mobilisation of this key workforce. However, our regional businesses will be unable to access the skilled migration scheme as it stands, given that the arbitrary threshold sits above the relevant award.
- Remove the proposal for a public register of approved sponsors
The stated purpose of this provision is to “promote transparency and worker mobility”. Our strong view is that this will only serve to exacerbate what is currently a major issue, namely the poaching of sponsored migrants by others, and job-hopping. Currently the employer bears a considerable cost with no guarantee of tenure.
This provision will also pose a privacy issue for participating employees in the regions and smaller communities. They will be personally identifiable, by association, if their employing SME is among those listed.
Our members are also concerned the register will deliver a handy resource for data scraping and unsolicited contact for employment or migration services.
- Introduce minimum tenure as a visa condition
As indicated above, employers currently bear a considerable cost in securing a skilled migration visa; yet there are no limits on the ability of other employers to poach a sponsored migrant, or for the migrant to job hop. Introducing as a condition of the visa a minimum period of tenure of say no less than two years and subject to appropriate exceptions in the event of breach of obligations by the sponsor etc, would give the sponsoring employer a fairer opportunity to obtain a benefit from their investment in sponsoring a skilled migrant.
Ensure robust and timely process for Occupations in National Shortage
- Introduce a robust process for identifying and listing regional skills shortages, as distinct from national shortages
- Amend the Bill to ensure a timely, responsive process for updating the eligible occupations lists
It is important that the Bill includes a robust process for assessing regional skills shortages, rather than determining shortages on a national basis. Attracting skilled workers is challenging nationwide, but the regions vary substantially and tend to be impacted more severely than metropolitan Australia.
The GMC urged legislators to ensure a timely process for maintaining current eligible occupations lists is critical if Australia is to compete on the world stage.
Read the full GMC submission at link here – Submissions – Parliament of Australia (aph.gov.au)