Fact Sheet 48a – Enterprise Migration Agreements

The government has announced the introduction of Enterprise Migration Agreements (EMAs)—a new temporary migration initiative to help address the skill needs of the resource sector.

EMAs will be a custom-designed, project-wide migration arrangement suited to the resource sector. It will ensure that skill shortages do not create constraints on major projects and jeopardise Australian jobs. Through EMAs, major resource projects will be able to access overseas labour for genuine skill vacancies that cannot be filled from the Australian labour market.

National Resources Sector Employment Taskforce

The National Resources Sector Employment Taskforce (NRSET), chaired by the then Parliamentary Secretary for Western and Northern Australia, Gary Gray, who was convened in late 2009 to help address the need for more than 70 000 skilled workers on major resources projects over the next five years.

Following the release of a discussion paper and call for submissions, the taskforce released its final report in July 2010
See: National Resources Sector Employment Taskforce

The report canvassed a range of recommendations across workforce planning and workforce participation, education and training, and community infrastructure. The government agreed to all 31 recommendations of the report.
See: Joint Media Release – Joint Media Release – Delivering skilled workers to the resources sector

With the construction phases of a number of major projects converging in coming years, the NRSET recognised that skill shortages are likely to emerge across a range of occupations—including in engineering and trades.

The NRSET noted that migration is only one tool for meeting Australia’s future skills needs and recommends the introduction of EMAs. Access to overseas labour will help to ensure that the peak workforce needs of these projects—easing capacity constraints and ensuring economic and employment benefits can be realised.

How will EMAs work?

An EMA will be a project-wide labour agreement, custom-designed for a particular resource project. An EMA will be negotiated with the project owner and will act as an umbrella arrangement for the project. The EMA will set the terms by which overseas workers will be engaged on the project, as well as outlining training commitments that must be met by the project.

The terms set out in the EMA will include the occupations, qualifications, English language skills, wages and conditions of the foreign workers on the project.

Sub-contracting employers, with the endorsement of the EMA holder, will sign onto labour agreements under the terms of the EMA, ensuring that responsibility for sponsorship obligations rests with the direct employer of the overseas worker.

Who can get an EMA?

EMAs will be available to resources projects with capital expenditure of more than two billion dollars and a peak workforce of more than 1500 workers.

To be approved for an EMA, projects will need to develop a comprehensive training plan, demonstrating how the project will invest in the up-skilling of Australians to meet future skill needs in the resources sector.  This plan will need to set measurable targets for training that develops skills in occupations where there are known or anticipated shortages. 

Overseas labour will only be supplementary, with resources projects required to demonstrate effective and ongoing local recruitment efforts.

The department will work with project owners to determine eligibility and interest in negotiating an EMA. A limited number of projects are eligible for an EMA. The department will not solicit applications.

Existing migration arrangements will continue to be available to these projects as well as resource projects that do not meet these thresholds, including five-day processing for decision-ready 457 visa applications as recommended by the NRSET.

What is the benefit of an EMA?

EMAs will take a project-wide approach to meeting skill needs. Rather than each sub-contractor having to negotiate their own labour agreement, the bulk of negotiation will occur with the project owner. This means that project owners can plan their workforce needs from the outset, and there will be a straightforward process for sub-contractors to sign up to an individual labour agreement.

The department aims to negotiate the agreements within three months from the time a project owner submits a complete request for an EMA. Labour agreements and visa applications associated with an EMA will be subject to expedited processing.

Under an EMA, occupations that are not eligible for standard migration programs can be sponsored, provided the project can justify a genuine need that cannot be met from the Australian labour market. This will be critical for resources projects, particularly during the construction phase.

What training requirements will apply for an EMA?

Project owners will be required to demonstrate how the project will significantly contribute towards addressing future skill needs in the resources sector. As part of its training plan, the project owner will need to:

• commit to training in occupations of known or anticipated shortage
• commit to reducing reliance on overseas labour over time, with particular focus on semi-skilled labour where this is approved for the EMA
• demonstrate that training strategies are commensurate with the size of the overseas workforce utilised on a project
• demonstrate how training targets will be enforced through its contracting model and measured and monitored over the term of the EMA.

In addition, individual sub-contractors will need to meet one of the standard training benchmarks associated with the 457 program, either by:

• contributing two per cent of payroll to a relevant industry training fund or
• spending one per cent of payroll on training for their Australian employees.

This contribution should be consistent with the broader training plan for the project.

What protections are in place to ensure overseas workers are not exploited?

Overseas workers sponsored under an EMA will hold 457 visas and will be subject to the Worker Protection Act 2009.

Direct employers will need to comply with sponsorship obligations, including paying Australian market salary rates. This means overseas workers cannot be used to undercut Australian working conditions.

Employers who do not comply with sponsorship obligations will be subject to sanctions such as a bar on sponsoring further overseas workers or termination of the labour agreement.

Where there is evidence of widespread abuse, contractual sanctions in an EMA will allow the department to suspend or cancel an EMA (and associated agreements).

Overseas workers will need to demonstrate English language proficiency and the skills and experience necessary to perform the occupation in Australia. Relevant licensing or registration requirements will also apply.

Will the number of overseas workers on a project be capped?

The first priority for resource projects must be the employment of Australian workers with overseas labour only used where there is a genuine need.  Resource projects will be required to demonstrate effective and ongoing local recruitment efforts as a criterion for access to an EMA.

For those occupations eligible for the standard 457 program, (most of which are highly skilled) no cap will apply to the number of people that can be sponsored through the EMA. This is consistent with the standard 457 program. The requirement to pay market salary rates and the cost of overseas recruitment, means that employers only seek overseas labour where there is a genuine skill need.

For semi-skilled, or ‘sub-trade’ occupations, a cap will be set as part of EMA negotiations. Project owners will need to provide evidence as to why Australian workers are not available to fill these vacancies.

Due to the highly specialised nature of some semi-skilled mining occupations, such as rigger or scaffolder, there is an anticipated need for experienced overseas workers in these occupations.

What consultation has occurred in the development of EMAs?

Over 40 stakeholders in the resources sector have been consulted on the policy development for EMAs, including:

• federal and state government agencies
• business peak bodies
• major employers in the hard rock and oil and gas industries and
• unions.

Ongoing consultation will occur through the skilled migration consultative panel, a government advisory body with representatives from business, state governments and unions.

What about recommendation 4.1. of the NRSET report?

In recommendation 4.1., the NRSET recommended that the department finalise 457 applications from the resources sector within five working days of a complete application being lodged.

All resources projects, regardless of their association with an EMA, are eligible for five-day processing of complete applications for temporary skilled migration.

As part of the budget, the government has also announced additional funding to reduce processing times for all 457 visa applications, recognising the important role this program plays in helping Australian businesses in other industries.

Currently, the median processing time for a 457 application is approximately 22 days. This is a reduction of 30 per cent from 2006-07.

Further information is available on the department's website.
See: www.immi.gov.au

The department also operates a national general enquiries line.
Telephone: 131 881
Hours of operation: Monday to Friday from 8.30 am to 4.30 pm. Recorded information is available outside these hours.

Fact Sheet 48a. Produced by the National Communications Branch, Department of Immigration and Citizenship, Canberra.

Last reviewed May 2011.

© Commonwealth of Australia 2011.