APFG Management Pty Ltd ABN 41 168 996 843 Location Unit 1, 85 Mt Barker Rd, Stirling, SA 5152 Australia PO Box 742, Stirling, SA 5152 Australia T +61 8 8339 9700 F +61 8 8370 1803

The Committee Secretary Senate Legal and Constitutional Affairs Committee PO Box 6100 Parliament House Canberra ACT 2600 [email protected]

Wednesday, 20 March 2019

Dear Committee Secretary,

Response by APFG Management Pty Ltd to the Senate Legal & Constitutional Affairs Committee - Inquiry into Australia's temporary skilled visa system

We refer to the above and thank The Committee Secretary for the opportunity to provide a response to the Senate Legal and Constitutional Affairs Committee (SLCAC) in respect of the written submission to the Inquiry from the Australian Workers’ Union (AWU) dated 18 December 2018, that comments on issues relating to the Pork Industry Labour Agreement (PILA) between APFG Management Pty Ltd (Sunpork Farms) and the Department of Home Affairs (DoHA).

The issues discussed in AWU Submission 48 to the SLCAC

Sunpork Farms confirms that the AWU was in fact consulted as part of the stakeholder consultation and engagement process leading up to the lodgement of the PILA with DoHA in March 2017.

Sunpork Farms did in fact receive a written reply from The National Secretary of the AWU and duly provided the response to DoHA as was required under the PILA request application requirements. The written response from the AWU, dated 27 March 2017 did outline a number of concerns held by the AWU in respect to Sunpork Farms PILA request application of March 2017.

With respect to the AWU’s Submission to the SLCAC on The effectiveness of the current temporary skilled visa system in targeting genuine skills shortages, dated 18 December 2018 and identified as SLCAC Submission 48, Sunpork Farms respectfully disagrees with the AWU’s ‘concerns’ as outlined in the AWU Case study 1: APFG Management Pty Ltd – pork industry (AWU Case Study).

The first concern outlined in the AWU Case Study

The first concern outlined in the AWU Case Study relates to the contention that there ‘was a lack of evidence to support Sunpork’s claim that it had “persistent and ongoing difficulties in identifying and recruiting local Australian qualified and skilled” workers’.

The AWU has solely based their first concern on the premise that the AWU ‘performed job searches on six large and relevant job seeker sites, including: Indeed.com; Jora.com; Seek.com; CareerOne.com; Adzuna.com; and AgCareers.com’. Further, on the sole basis of the ‘job searches’ performed, the AWU determined that ‘it failed to find even one domestic job advertisement for the job classification Sunpork sought under the labour agreement’.

The fact is that Sunpork Farms has, and continues to, suffer from persistent and ongoing difficulties in identifying and recruiting local Australian qualified and skilled senior stockperson piggery workers and other skilled trade and professional occupational positions.

In the context of the request application for access to a PILA, there is no DoHA mandate or requirement that advertising for local Australian workers be undertaken though the medium of online job advertisement websites. The AWU Case Study has mistakenly assumed that advertising for local Australian workers can only be achieved and evidenced by reference to a hand full of online job advertisement websites.

In the period leading up to the lodgement of the request application for access to the PILA, Sunpork Farms advertised locally for local Australian qualified and skilled senior stockperson piggery workers. Sunpork Farms confirms that print advertisements were placed and advertised in 2 separate local newspapers, a combined total of 4 separate advertisements, over a 6-month period leading up to 31 January 2017.

The relevant print advertisements were published in The Bunyip Leader (Gawler) on 23 September 2016 and 4 January 2017 (published in Gawler, South Australia, covering the Barossa, Light, Playford, and Adelaide Plains regions) and The Murray Valley Standard on 18 October 2016 and 24 January 2017 (published in Murray Bridge, South Australia covering the Meningie to Swan Reach, Mannum to Tintinara, Callington to Lameroo and Kanmantoo to Karoonda). Each advertisement detailed positions vacant for Senior Piggery Attendants at Sunpork Farms.

As a result of advertising in The Bunyip Leader and The Murray Valley Standard, Sunpork farms confirms that there were no applications received from local Australian workers/candidates for the advertised positions.

As part of the request application for access to the PILA, Sunpork Farms provided DoHA with a signed Summary of Domestic Recruitment Efforts declaration, together with 12 pages of supporting documentation evidencing job advertisement orders and placements and associated advertising costs for the advertising. Further, the Summary of Domestic Recruitment Efforts declaration detailed the dates that the positions were advertised, the geographical target audience, the number of applications received, the number of local job applicants hired/employed and the reasons why local Australian candidate applicants were not successful.

Further, shortly after the conclusion of the PILA stakeholder consultation process on 4 April 2017, Sunpork Farms did in fact place an on-line job advert on www.seek.com.au for the position of Senior Stockperson Piggery for a period of 30 calendar days.

The www.seek.com.au advertising process was undertaken to supplement and compliment the print advertising process undertaken between 23 September 2016 and 31 January 2017 and to strengthen and support the efficacy of Sunpork Farms domestic recruitment efforts of local Australian workers.

The relevant www.seek.com.au advertisement was published for 30 days from 4 May 2017 to 3 June 2017 inclusive. The advertised job position was for Senior Stockperson Piggery. The relevant job advertisement had a total of 498 job views by Australian and overseas based candidates. In total there were 14 candidate applications received with 2 duplicate candidate applications.

In response to the www.seek.com.au advertisement there were only 2 local Australian candidates that met the minimum criteria for the advertised position. For privacy concerns, the names and details of both local candidates cannot be divulged, but we confirm that the first candidate was assessed and a past employer was contacted for the purposes of a work reference check and as a result of the reference check, the candidate was deemed unsuitable for the position.

As to the second candidate, Sunpork Farms pursued the candidate over a period of 3 weeks to arrange a face-to-face job interview. A face-to-face interview was finally scheduled for 4pm 19 June 2017 at our Murray Bridge office, but was subsequently cancelled by the candidate with no reasonable or satisfactory explanation. On this basis Sunpork Farms fairly determined that the candidate was not interested in the advertised position.

As part of the request application for access to a PILA, Sunpork Farms provided DoHA with a signed Summary of Domestic Recruitment Efforts declaration as to the www.seek.com.au job advertisement process, together with 5 pages of supporting documentation evidencing a copy of the job advertisement and associated advertising costs. Further, the Summary of Domestic Recruitment Efforts declaration detailed the dates that the position was advertised, the geographical target audience, the number of candidate applications received, the number of local job applicants hired/employed and the reasons why the local Australian candidates were not successful.

The AWU Case Study also notes at page 6 that ‘the AWU informed Sunpork that AWU Officials in South Australia, including delegates working within the industry, were unaware that Sunpork was seeking additional employees in this classification.’

In response to the notation immediately above, Sunpork Farms confirms and reiterates that it placed print advertisements seeking additional employees in the position of Senior Piggery Attendant in The Bunyip Leader (Gawler) on 23 September 2016 and 4 January 2017 and The Murray Valley Standard on 18 October 2016 and 24 January 2017 over a 6-month period leading up to 31 January 2017.

The second concern outlined in the AWU Case Study

The second concern outlined in the AWU Case Study relates to the contention by the AWU that ‘Sunpork may be seeking to import foreign workers in the occupation of Senior Stockperson (Piggery) merely because this is the only classification for which a pork industry labour agreement is currently in place for, and not because Sunpork genuinely required 45 people in this classification across its operations in South Australia.’

Sunpork Farms disputes and rejects this second concern raised by the AWU. Under the terms of any PILA request application, the only available and permissible occupational position is Senior Stockperson Piggery. This occupational position has been ‘up skilled’ from ANZSCO occupation code 841599 (Livestock farm worker nec) to a skill level 4 occupation through a tailored description of duties and a specified minimum higher qualification level (AQF Certificate III) in accordance with DoHA requirements and in consultation with Australian Pork Limited.

At the time the stakeholder consultation process was initiated, and the PILA request application was lodged with DoHA, Sunpork Farms operated 16 separate pig farm production sites in South Australia with a sow herd of approx. 16,000 breeding females. All production sites are in remote regional low population growth areas.

The requirement for 15 skilled overseas Senior Stockperson Piggery workers for each year of the 3-year PILA approval (a total of 45 sponsored employment positions over the 3 years) equates to an average of

approximately 1 skilled overseas Senior Stockperson Piggery worker for placement and employment in each of Sunpork Farms 16 separate pig farm production sites in South Australia.

Such numbers of skilled overseas workers over the 3 years approval period of the PILA cannot be reasonably or fairly be characterised as being unreasonable or not genuine when taken in the context of the size of the Sunpork Farms business and its 16 separate pig farm production sites in South Australia.

Sunpork Farms has a firm and ongoing commitment to the recruitment and employment of local Australian workers and only uses its PILA approval to complement and supplement its Australian skilled workforce. Sunpork Farms does in fact have a genuine need and requirement for 45 skilled overseas workers in the occupational classification of Senior Stockperson Piggery across its operations in South Australia.

The AWU Case Study at pages 6 then proceeds to assert that ‘because the Temporary Skilled Migration Income Threshold (‘TSMIT’) is set at such a low level – and has been set at the same low rate since 2013 – it can be cheaper for employers to seek overseas labour to perform roles for which very little training or qualifications are required, and therefore necessarily do not fall within the classification for which the Department has deemed an ‘ongoing shortage’ for.’

The above assertion in the AWU Case Study does not accurately characterise or reflect the TSMIT and the reality is that the recruitment, engagement and employment of skilled overseas workers involves a great deal more cost and expense than employing local Australian employees. The costs and expenses involved in the recruitment, visa application charges, migration agent service fees and air travel can amount to $10,000.00 for each overseas worker. This is a significant impost on Sunpork Farms labour costs.

Further, the skilled overseas workers employed by Sunpork Farms under the PILA are in fact highly qualified and skilled workers with the vast majority holding an overseas bachelor degree qualification in agricultural livestock science and a minimum 3 years relevant and related work experience in the piggery industry or in the absence of holding a formal qualification, they have worked for a minimum 5 years at the required ANZSCO skill level in the piggery industry. Sunpork Farms has found that the overwhelming majority of skilled overseas workers have qualifications and skills that are immediately transferrable to the Australian workforce.

The AWU Case Study at pages 7 then proceeds to take aim at the current TSMIT level and proceeds to conflate the purpose and current rate of the TSMIT stating ‘it cannot be said that this yearly rate of pay adequately reflects that there is such a chronic shortage of Australians who can perform certain roles in certain industries that employers in those industries must import people from other countries.’

The TSMIT, currently set at $53,900.00 per year, is designed to establish a base income floor as an entry level salary point for Subclass 457 and Subclass 482 visa workers, as acknowledgement that temporary work visa holders are temporary residents and are not eligible for the same income support benefits as Australian citizens and permanent residents.

The underlying premise of the TSMIT is that Subclass 457 and Subclass 482 visa workers should be able to reside in Australia without government support and not find themselves in difficult financial circumstances that could make them vulnerable to exploitation or encourage them to breach their visa conditions.

The AWU Case Study overlooks that fact that employers seeking to employ Subclass 457 and Subclass 482 visa workers must guarantee that the terms and conditions of employment of Subclass 457 and Subclass 482 visa workers, including pay and hours of work, are no less favourable than the terms and conditions that are, or would be, provided to an Australian worker performing equivalent work in the same location. In

other words, DoHA must be satisfied that Subclass 457 and Subclass 482 visa workers will be paid the 'market salary rate'.

The 'market salary rate' requirement has since been replaced and strengthened by the implementation of the Australian Market Salary Rate (AMSR) for Subclass 457 and Subclass 482 workers. The purpose of the then market salary rate requirement and the current AMSR requirement is to:

1. ensure that Australian workers are protected from any adverse impact on wages; and

2. protect skilled overseas workers from exploitation by ensuring they are not paid less than the market salary rate or the AMSR.

The obligation on Sunpork Farms, and other employers accessing skilled overseas workers, to pay the relevant market salary rate or AMSR to its overseas workers is monitored by DoHA and the Fair Work Ombudsman.

The AWU Case Study then goes on to suggest that ‘the first step to resolving any chronic shortage of labour in a role that attracts that rate would be to increase the rate of pay, not replace the domestic workforce with one from overseas’. The AWU Case Study fails to provide any cogent or compelling evidence that increasing the rate of pay or increasing the TSMIT would resolve any shortage in the available labour pool of local Australia workers.

Further, under the PILA Sunpork Farms remunerates all overseas workers in accordance with the occupational classifications and pay rates as stipulated in the Pastoral Award 2010. The rate of pay for Australian employees and overseas employees that are employed by Sunpork Farms are regulated by the Pastoral Award 2010.

Skilled overseas workers under the PILA are governed by the same minimum conditions of employment as Australian workers. These conditions include working hours, overtime payments, rest breaks, sick leave and holidays. All skilled overseas workers have the right to join and be represented by a trade union and the right to be treated fairly, which includes not being dismissed unfairly or discriminated against for reasons of race, religion, sex, pregnancy, sexual orientation, disability or for trade union membership.

The third concern outlined in the AWU Case Study

The third concern outlined in the AWU Case Study at page 7 relates to the fact the Sunpork Farms was previously granted access to a labour agreement which had subsequently expired in February 2017 and that Sunpork Farms made a further second request to DoHA for access to a new PILA in March 2017. Sunpork Farms confirms that this is correct.

The AWU Case Study then goes on to state that ‘it firstly appears that Sunpork was failing to decrease its reliance on temporary overseas workers’ and ‘secondly it appears that Sunpork was not using the skilled overseas workers to assist in training its domestic workforce to achieve that outcome.’

Sunpork Farms rejects both of the assertions outlined immediately above in the AWU Case Study and confirms that the fact that it re-applied for access to a second PILA request application in March 2017 is not indicative or conclusive evidence that it has failed to decease its reliance on skilled overseas workers.

Sunpork Farms has used and will continue to use the PILA for the sole purpose of supplementing and complementing its entire skilled workforce and not for the purpose or intent of overlooking and/or displacing suitably qualified and skilled local Australian workers with skilled overseas workers.

Sunpork Farms confirms that the vast majority of employees currently working in its business operations in South Australia are in fact Australian citizen and/or permanent residents and overseas workers comprise no more than 10% of Sunpork Farms total workforce composition as at the date of this submission.

In regard to overseas workers assisting in the training and development of Australian workers, Sunpork Farms confirms that skilled overseas Senior Stockperson Piggery workers have been utilised in the training, development and upskilling of the local Australian workers where suitable and appropriate.

Further, Sunpork Farms actively encourages and funds ongoing training and development opportunities for its Australian workforce through formal AQF Certificate III level courses in Pork Production and AQF Diploma level courses in Pork Production in addition to ‘on the job’ training and development opportunities.

Yours faithfully,

Rod Hamann Executive General Manager - SunPork Farms