Labor cans controversial PALM change, FWC raises minimum wage by 3.75pc

In last-minute changes to its PALM plans, the federal government will allow growers to offer 120 hours of work averaged over four weeks to short-term workers from July 1, rather than the previously mandated 30 hours per week.

The rule change was provided first-hand to peak industry groups late last week by Department of Employment and Workplace Relations officials during a specially convened meeting.

However, employers will still have to pay the 120 hours even if employees do not work them all.

Meanwhile, the Fair Work Commission on Monday announced a 3.75 per cent increase to the national minimum wage following its annual wage review.

Th Commission's changes will mean national minimum wage earners in Australia will now be paid $24.10 per hour, or an extra $33.10 per week and an additional $1721 per year.

The minimum wage has increased by $143.30 a week and by $7451.60 annually since Labor came to power in 2022.

Producer groups had been lobbying the federal government over its ratcheting down of the PALM scheme Approved Employer Deed and Guidelines to provide enhanced safeguards to workers that support regular income.

The chief concern was that while corporate operations could better provide continuous work and absorb the mandatory weekly wages, smaller growers would find the new conditions unworkable given tight margins and unpredictable harvesting, weather and planting cycles.

Some farmers had threatened to exit the scheme and this, combined with a doubling of working holiday maker visa holders to 175,000 following Australia's international borders re-opening, has seen a drop in both short- and long-term PALM workers being used in agriculture.

National Farmers Federation horticulture committee chair Jolyon Burnett said the federal government had heeded advice that the 30-hr a week pay setting would result in fewer employers engaging with PALM.

"Business confidence in horticulture is at a low ebb right now, and a lot of that has got to do with a lack of certainty in our workforce options," he said.

"The announced improvements will be a real shot in the arm for employers in the sector, and especially for those who have made significant accommodation and other capital investments to meet scheme requirements.

"We congratulate the government on this improvement to the PALM scheme and ask that we now take a long-term view of building a workforce for the horticulture industry that is secure, reliable and productive, with a more balanced mix of labour sources."

Nationals leader David Littleproud also recently cleared some air around the Coalition's promised migration clampdown, guaranteeing that the agriculture visa would be revived should it win the forthcoming federal election.

The so-called Ag Visa was dismantled by Labor shortly after its May 2022 federal election victory with the party instead relying on the PALM scheme to supply farm workers as part of its desire to shore up regional ties through the Pacific.

Since then, however, some Pacific leaders have flagged capping their nation's contribution to the scheme before it causes domestic labour shortages.

Agriculture is extremely reliant on skilled overseas workers and is the second highest proportional user of skilled visa workers only behind the information technology sector.

The news comes as visa fees are on the increase and adjustments to rules carving out UK backpackers from needing to work in the regions to stay in Australia come into force.

Meanwhile, DEWR data provided to a recent Senate standing committee showed an 11pc reduction in the number of PALM workers employed in agriculture in the six months to January.

The figures show that while 28,352 PALM labourers were working in the industry in June 2023, this dropped to 25,134 in January 2024.

Most of the bleed came from the short-term, rather than the long-term, worker streams.