A Complete Guide to the Meat Industry Labour Agreement

Australian businesses rely on the meat industry labour agreement to fill critical workforce gaps. As of February 2022, the Department of Home Affairs has agreements with 45 firms. More than 6,000 Pacific Labour Scheme workers are in Australia, and two-thirds work in abattoirs. The agreement lets businesses sponsor skilled meat workers from overseas. These workers can stay up to 4 years or become permanent residents.

These agreements become essential when local workers cannot meet the skilled workforce demands. They remain valid for five years and benefit both employers and workers. Starting July 1, 2023, the Temporary Skilled Migration Income Threshold in Labour Agreements will rise to £70,000 per year. Businesses in Category 3 regional areas can pay skilled overseas workers 90% of this threshold. Let’s explore how this agreement works, who qualifies, and the available pathways for temporary and permanent migration.

Government Introduces Meat Industry Labour Agreement

What is the MILA and why was it created?

The Meat Industry Labour Agreement (MILA) helps solve workforce challenges in Australia’s meat processing sector. This specialised agreement lets meat industry employers sponsor skilled overseas workers as ‘skilled meat workers’ under specific terms and conditions. The meat industry’s heavy reliance on migrant workers led to this agreement that is now several years old. Most processing plants are in regional locations, and the work is demanding.

MILA works differently from standard visa arrangements. The agreement provides special concessions and pathways that match what the meat processing industry just needs. The meat processing sector faces unique challenges because many facilities operate in regional areas. These areas make it hard to find skilled workers. The agreement offers different concessions based on visa subclass and regional location of the business.

Which visa subclasses are covered under MILA?

MILA supports three visa pathways for skilled meat workers:

  • Skills in Demand visa (subclass 482) – formerly known as the Temporary Skill Shortage visa
  • Employer Nomination Scheme visa (subclass 186) – available after a three-year transition period
  • Skilled Employer Sponsored Regional (Provisional) visa (subclass 494)

The ‘skilled meat worker’ occupation doesn’t have a standard Australian and New Zealand Standard Classification of Occupations (ANZSCO) code. Employers must use code 070499 when they nominate this occupation. This role includes tasks that Slaughterers, Meat Boners and Slicers typically do. These tasks include stunning and killing livestock, operating switching controls, cutting meat, and getting cuts ready for packing and marketing.

How long can workers stay under this agreement?

Worker stay duration varies by visa type under MILA. The Skills in Demand visa (subclass 482) lets sponsors choose an employment period up to four years. Approved nominees get a visa for their requested time period.

The Skilled Employer Sponsored Regional (Provisional) visa (subclass 494) gives successful applicants a five-year stay when they meet all requirements. This longer duration shows the government’s steadfast dedication to supporting regional areas with long-term workforce solutions.

MILA’s most valuable feature is its path to permanent residency. Workers can move to an Employer Nomination Scheme (186) permanent resident visa after three years on a Temporary Skill Shortage visa. This path benefits everyone – businesses keep their experienced staff and workers can settle permanently in Australia.

Recent MILA changes have made it easier to qualify. TSS eligibility now just needs one year of relevant work experience in Australia. Workers must also pass an independent assessment showing skills equal to a Certificate III qualification.

Employers Must Meet Strict Sponsorship Criteria

Meat industry employers need to follow strict rules before they can hire workers from overseas through the labour agreement programme.

Which businesses are eligible to sponsor under MILA?

Companies must prove they operate legally in Australia to qualify as sponsors under the meat industry labour agreement. These businesses need a proven track record of hiring local workers or must show they’re committed to local employment. The Department of Home Affairs also requires them to declare they don’t discriminate in their hiring practises.

Businesses must show they tried to hire Australian citizens and permanent residents first. They need written proof that shows their genuine attempts to find local workers before looking overseas through the labour agreement. The next step requires them to get approval from the Designated Area Representative (DAR) before submitting their labour agreement request through ImmiAccount.

Sponsors must follow workplace laws, migration rules, and immigration regulations that govern sponsored overseas workers throughout the agreement. The rules state that overseas workers can’t make up more than one-third of a company’s total workforce in any given year.

What are the full-time employment and salary obligations?

The meat industry labour agreement requires companies to hire skilled overseas workers full-time only. Full-time work means 38 hours per week according to National Employment Standards. The rules also accept 32 to 45 hours per week as full-time if it follows an industry award or agreement that matches National Employment Standards.

Skilled overseas workers should earn at least as much as the Temporary Skilled Migration Income Threshold (TSMIT). Companies need to pay extra if Australian workers get higher pay for doing the same job when overseas workers receive an annual salary.

Companies must stick to Standard Skilled visa programme rules about TSMIT/CSIT, pay, and work hours unless Schedule 2 of their agreement says otherwise. These rules protect both local and overseas workers from unfair treatment.

How does regional location affect employer requirements?

The meat industry labour agreement splits regional locations into three different categories, each with its own rules and benefits.

Companies in Category 3 regional areas can pay skilled overseas workers 90% of the Temporary Skilled Migration Income Threshold. This amount must still match or exceed what Australian workers earn for the same work.

Age limits for visa applicants change based on location. Category 1 regional areas follow regular age rules for both the Employer Nomination Scheme visa (subclass 186) and Employer Sponsored Regional visa (subclass 494). Category 2 and 3 areas have more flexible rules – applicants just need to be under 55 when they apply.

This system recognises that remote businesses face unique challenges. It offers special conditions to help them find workers while maintaining proper standards and protections.

Meat Workers Must Meet Skills and Language Standards

Overseas workers who want jobs through the meat industry labour agreement must meet strict standards for qualifications, experience, and language to get their visas approved.

What qualifications are required under MILA?

Skilled meat workers nominated under the agreement must pass a formal assessment that checks their capabilities. The assessment confirms that workers have skills matching the Australian Qualification Framework Certificate III in meat processing. A registered assessor from the Meat Industry National Training Advisory Council (MINTRAC) or someone approved by the Commonwealth must conduct this verification.

The assessor’s qualifications must include a Certificate IV in Training and Assessment with meat processing experience. This detailed verification process will give us confidence that overseas workers have the right technical skills to work in Australian meat processing facilities.

How is work experience assessed?

Overseas workers must prove their relevant work experience through one of these three paths:

  • Show at least 2 years of skilled work experience at a meat processing facility that parties accept, or
  • Have worked in Australia on a Subclass 457 or Skills in Demand visa at an Australian meat processing facility for at least 9 months before nomination, or
  • Have at least 1 year of relevant Australian work experience on a temporary visa other than Subclass 457 or Skills in Demand visa at an Australian meat processing facility

The meat industry labour agreement has become more available with recent changes. TSS eligibility just needs one year of relevant work experience in Australia plus the independent skills assessment. Pacific Labour Scheme workers now have better chances to move into skilled visa paths.

What are the English language test score requirements?

The English language standards change based on visa type and region:

  • Skills in Demand visa (subclass 482): Category 1, 2 and 3 regional locations just need an IELTS overall test score of 5.0, with no minimum scores for individual parts
  • Employer Nomination Scheme visa (subclass 186): All regional categories need either an IELTS overall score of 5.0 (no minimum for individual parts) or the applicant must have a current subclass 457 visa that didn’t require English language proof when granted
  • Skilled Employer Sponsored Regional visa (subclass 494): Category 2 and 3 regional locations just need an IELTS overall score of 5.0

The Department of Home Affairs wants all language tests taken at secure test centres. They don’t accept online or “remote-proctored” tests for Australian visas. Test results stay valid for three years before a visa application, though this might change depending on the visa type.

The Department of Foreign Affairs and Trade now offers funding that helps with English training and competency assessments. This support helps workers meet their language requirements.

Visa Pathways Offer Temporary and Permanent Options

The meat industry labour agreement creates several migration paths for skilled overseas workers. Workers can choose between temporary stays and paths to permanent residency in Australia.

How does the TSS visa work under MILA?

The Temporary Skill Shortage (TSS) visa (subclass 482) helps overseas meat workers enter Australia under MILA. This visa lets workers stay in Australia up to four years. TSS visa holders can bring their families along, and their partners get full work rights in Australia.

The TSS pathway has become easier lately. Workers now need just one year of relevant work experience in Australia and an independent skills assessment. Sponsors must nominate workers for specific jobs they can’t fill with local talent.

What is the transition process to permanent residency (subclass 186)?

Meat workers can switch to the Employer Nomination Scheme (ENS) visa (subclass 186) after three years on a TSS visa. The same employer who sponsored their TSS visa needs to nominate them for this permanent residency path.

Workers must meet these requirements to qualify:

  • Work in eligible sponsored jobs for their nominating employer
  • Keep full-time employment during the qualifying period
  • Meet English language standards
  • Pass health and character checks

A successful subclass 186 visa application grants permanent residency. This lets holders live, work and study in Australia without time limits. They can sponsor eligible family members and later apply for Australian citizenship.

Are there age limits for different visa subclasses?

Age rules differ between temporary and permanent visas. The Temporary Skill Shortage visa (subclass 482) has no age limit at all. Permanent residency paths have stricter age rules.

The Employer Nomination Scheme visa (subclass 186) needs applicants to be under 45 years old when applying. In spite of that, regional areas offer more flexibility. People working in Category 2 and 3 regional areas can apply until they turn 55.

These roles don’t have age limits:

  • Academic positions at Australian universities
  • Scientists and researchers at ANZSCO skill level 1 or 2
  • Medical practitioners in regional areas
  • High-income earners above the Fair Work High Income Threshold

Labour Agreement Has Regional and Salary Concessions

The meat industry’s labour agreement acknowledges that businesses face different challenges based on their location. This recognition comes through customised concessions for employers and workers in regional areas.

How does the TSMIT concession apply?

The Temporary Skilled Migration Income Threshold (TSMIT) in Labour Agreements will rise to AUD 107,029.32 yearly starting July 1, 2023. The existing TSMIT concessions will stay at their current percentage. To cite an instance, a 10% concession on the current TSMIT of AUD 82,412.57 will apply at the same rate to the new threshold. These concessions change based on visa type and the business’s regional location.

What are the salary thresholds in Category 3 regions?

Category 3 regional locations are areas that skilled migration defines as “Regional centres and other regional areas”. Workers from overseas in these areas can receive pay at a lower rate. Their earnings can match or exceed 90% of the TSMIT for 494 visas or 90% of the Core Skilled Income Threshold (CSIT) for 482 and 186 visas. This rule applies as long as their salary matches or exceeds what Australian workers get for the same work.

Are there any exemptions to skills assessments?

Employer Nominated Scheme (subclass 186) visa applicants under MILA arrangements get important exemptions for skills assessments:

  • They don’t need a skills assessment if they already had a positive one for an earlier Subclass 457 or SID visa under a Meat Industry Labour Agreement
  • The Department can still ask for an assessment if needed
  • They might need reassessment in cases like:
    • Questions about their previous skills assessment
    • Gaps in employment with the sponsor longer than three months

The agreement also offers English language concessions. Workers show sufficient English skills with an IELTS overall score of 5.0 or higher, without minimum test score requirements.

Conclusion

The Meat Industry Labour Agreement has become a key solution to workforce challenges in Australia’s meat processing sector. This specialised pathway addresses the unique needs of meat processing facilities. Many of these facilities operate in regional areas where finding skilled workers is nowhere near easy.

The agreement offers three distinct visa pathways: Skills in Demand visa, Employer Nomination Scheme visa, and Skilled Employer Sponsored Regional visa. These options create stability for employers and workers. Workers can get permanent residency after three years, while employers can access skilled labour they can’t find locally.

The system maintains high standards through strict requirements. Employers must show they tried to hire Australian citizens first. They also need to follow workplace laws and keep overseas workers to no more than one-third of their workforce.

Overseas workers must meet strict qualification assessments, work experience requirements, and English language tests. These standards ensure only qualified workers join Australia’s meat processing workforce.

The agreement’s regional concessions are a great way to get targeted benefits. A three-tiered regional classification system recognises different challenges across locations. Category 2 and 3 regions enjoy benefits like lower salary thresholds and more flexible age requirements.

Over the last several years, changes to the agreement have simplified processes. Reduced work experience requirements and better transition options now help Pacific Labour Scheme workers move into skilled visa pathways.

The labour agreement creates a balanced approach, even with complex migration requirements. It supports business continuity and protects both local and overseas workers. This agreement remains crucial to Australia’s strategy. It helps maintain productivity in this essential sector while creating meaningful employment and migration opportunities for skilled overseas workers.