AUSTRALIA’S peak shearing contractor body has given qualified support to a union proposal for a national industry employer regulator, but rejects a ‘poverty wages’ claim.

A new resolution passed at the Australian Workers’ Union’s national conference in Perth last week has called on the Federal Government to set up a new national licensing and enforcement body, claiming widespread reports of labour exploitation in shearing sheds across the country.

The AWU believes shearers will continue to work for poverty wages in unsafe shearing sheds across the country until the Commonwealth Government imposes a licensing regime on all labour hire companies operating in regional Australia.

The AWU said the new regulation body would hold the powers to ensure licensing and registration, but also have powers of enforcement.

The background information to the motion put by Victoria AWU member Patrick Wood and seconded by Robert Flanagan from Tasmania said in “in sheds across Australia, unscrupulous companies again demand that shearers work for poverty wages and in workplaces much like those endured in the 1890s.”

“The AWU is obstructed from acting on this injustice by a lack of regulatory oversight of the pastoral industry.

“Many operators have exploited these circumstances to make huge profits by putting the health and wellbeing of shearers at risk,” the motion movers said.

“Sham contracting to avoid obligations to workers is rampant, as is workplace injury. Young regional Australians, in particular, are paying the price.”

They believe shearers need a new national regulator to:

Require all shearing contractors to be licensed and registered before they employ shearers;

Apply and enforces a ban on sham contracting in shearing;

Ensure right of entry powers for permit holders are upheld; and

Provide greater powers for right of entry permit holders when attending pastoral worksites.

The National Conference resolution resolved that: “AWU National Office will work with the Commonwealth to develop legislation that establishes a pastoral industry regulation body with enforceable powers to ensure licensing and registration of all pastoral contractor companies within Australia.”

Labour hire company and contractor distinction is important

Shearing Contractors Association of Australia secretary Jason Letchford said the SCAA would not be opposed to a national licensing and enforcement body for contractors “because the good employers are continuing to do the right thing by employees.”

“And it is largely the labour hire operators that the union has concerns about – who are not present on work sites and not full-service shearing contractors.

“But there is confusion between what is a genuine shearing contractor and what is a labour hire operator,” he said.

“Recently the SCAA met with the Victorian Labour Hire Authority to request a written determination as to what is a ‘shearing contractor’ and what is a ‘labour hire operator’ in the wool harvesting space.

“The main difference and problems include labour hire operators encouraging farmers to engage shearing workers directly via ABN’s and misleading farmers that shearing workers on ABN’s are not employees and therefore don’t need to charge for workers compensation or payroll tax, saving the farmer at least 15 percent, compared with a bona fide shearing contractor, who do insure their workers and are required to pay payroll tax,” Mr Letchford said.

“It’s on this basis that the SCAA agrees with the AWU and welcomes more regulation and scrutiny in this space.

“That said, the SCAA is not opposed to a national licensing body,” Mr Letchford said. But he pointed out that there are already labour hire authorities in multiple states.

“So supporting a national approach would require the abolition of the existing state bodies for it to be practical and effective.”

Poverty wage payments by contractors refuted

Mr Letchford welcomed an increased balanced union presence in the industry, but “strongly refuted” any workers employed by a genuine shearing contractor were working for poverty wages.

“It’s a ridiculous notion – the job is too hard and the shearing workers would not return if the pay was not highly attractive, compared with pay rates in competing industries.”

Mr Letchford said most shearing industry workers were being paid at least 15 percent above the Pastoral Award. He is not aware of any ‘sham’ contractors paying less than the recommended award rates to workers.

“Most are working on the ‘SCAA Recommended Pay Scale’, which is 15pc above award,” he said.

“However, I will agree that there is a small percentage of shearing sheds among the tens of thousands of shearing sheds across the country that could certainly do with improvements.

“But I would also like to acknowledge the huge improvements in the conditions, in the majority of shearing sheds across the country and farmers should be applauded for their investment in their wool-growing operations.”

Mr Letchford said to his knowledge all unions have right of entry to workplaces, especially under state Labor governments, and some could act as the workplace regulator’s agent.

AWU is back fighting for shearers

The AWU was formed by unionised shearers in Ballarat in 1886, and it was shearers who formed the political arm of the labour movement, the Australian Labor Party, in Queensland in 1892; however, AWU coverage in the shearing industry waned after the wide comb dispute in the early 1980s.

Lead organiser with the AWU Victorian branch’s country team Ross Kenna said shearers of the 1800s would be ashamed to see what’s happening in shearing sheds in 2024.

“The AWU was born fighting for shearers, and we’re not backing down now.

“It’s disgraceful that some of the same exploitative attitudes that we saw prevailing in the 1890s have re-emerged in 2024,” he said.

“Today we are once again seeing young shearers working for poverty wages in unsafe conditions.

“A national licensing system for shearing contractors is a must if we want to protect our workers’ rights and safety,” he said.