Australia: Government gives green light to mega project skills shortage solution

Last Updated: 13 April 2011
Article by Allan Drake-Brockman and Lenny Leerdam

The Minister for Education Employment and Workplace Relations, Senator Chris Evans recently announced that the 31 recommendations put forward by the Resourcing the Future: National Resource Sector Employment Taskforce Report (Report) be accepted in principle by the Federal Government.

Of key interest to proponents of mega resource projects was the acceptance in principle of a recommendation to introduce a special form of Labour Agreement called an Enterprise Migration Agreement (EMA).  A Labour Agreement is a legal contract between the Australian Government and an employer that allows the employer to bring in skilled overseas workers to Australia on either a temporary or permanent visa.  In some situations a Labour Agreement is the only option available to an employer who wants to access employer-sponsored migration programs.  Labour Agreements are often used when the skills an employer needs are not on the relevant list of approved occupations but a genuine shortage exists.

Employers have been justifiably frustrated by the time it takes to negotiate a Labour Agreement with the Department of Immigration and Citizenship (DIAC) and stakeholders.  The average processing time has been between six and nine months, with some taking over 12 months.

Multiple employers engaged on a mega project will be able to gain the benefit of a single EMA.  That is, rather than each employer on a project negotiating its own Labour Agreement with DIAC, those employers would be pre-qualified under the EMA.  The EMA would be negotiated by the project owner or EPCM contractor responsible for selecting construction contractors on the project. 

By using an EMA, the project owner or EPCM contractor would be able to secure streamlined access to migration by facilitating construction contractors on the project to be pre-qualified under the EMA.  This will significantly reduce the timeframe within which construction contractors can be authorised to bring in overseas workers in crucial construction classifications.  The Report suggests that EMAs must be able to be negotiated within a three-month timeframe.

What do employers need to show?

The Report recommends that proponents of mega projects seeking an EMA meet a number of criteria.  These include:

  • A credible workforce plan that justifies the need for overseas workers.
  • Evidence of market testing for trades and occupations.
  • Evidence of recent domestic recruitment action and clear explanation as to why Australian citizens could not be trained for the position (particularly in relation to lower skilled roles).
  • A credible plan for training Australians to fill lower skilled roles (where the need is ongoing).
  • Identification of contractors that have responsibility for parts of the project that do not currently operate or have a base in Australia.
  • Skills clearances provided by a reputable Registered Training Organisation (RTO), where there is a demonstrated recent history between the RTO and the enterprise.
  • Evidence of appropriate programs that provide induction site and safety training to Australian standards and to settle overseas workers into Australian life.
  • Social inclusion programs.
  • Training programs for indigenous people with a focus on employment outcomes.
  • Evidence of consultation with the relevant industry stakeholders, including relevant trade unions.

When will EMAs become an available option?

According to DIAC, mega project proponents will be able to apply for EMAs within about a month to six weeks, once the Australian Government has finalised its EMA policy. 

The details of that policy will determine whether the Australian Government will be able to assist the large number of employers who are already experiencing skills shortages due to the resources boom.  In Western Australia alone there is an estimated $225 billion worth of resource and infrastructure projects that are either under construction, committed or under consideration.  WA Training and Workforce Development Minister, Peter Collier is very concerned about research showing that WA could have a shortage of up to 150,000 skilled workers. 

Having met with Federal Skills, Jobs and Workplace Relations Minister, Chris Evans and Immigration and Citizenship Minister, Chris Bowen, Collier is also concerned that the criteria for qualifying for an EMA will result in very few EMAs being made.  In particular, Collier revealed that the current criteria for projects qualifying for an EMA include the need for projects to be valued at $10 billion or more, with a peak construction workforce of 15,000.  There is only a handful of proposed projects in Australia that would qualify for an EMA under those criteria.  The WA State Government has recommended a reduction in the value of the project to $2 billion, with a workforce requirement of 1000.

How can we help?

There will be much preparatory work to be done by proponents of mega projects or their EPCM contractors in preparation for negotiating an EMA with DIAC.  The proponents of mega projects due to commence construction within the next 12 months should seriously consider taking preparatory steps now to ensure that they are ready to apply for an EMA when they become available.

Our specialist industrial and migration lawyers (including migration agents) are well placed to assist with the negotiation of EMAs.  Amongst other things, we can facilitate high-level consultation with relevant government authorities and trade unions, and represent EMA applicants at those discussions.  We can also draft all necessary application documents, ensure all applicable Australian labour and migration laws have been complied with and make submissions to DIAC wherever appropriate.

© DLA Phillips Fox

DLA Phillips Fox is one of the largest legal firms in Australasia and a member of DLA Piper Group, an alliance of independent legal practices. It is a separate and distinct legal entity. For more information visit

This publication is intended as a first point of reference and should not be relied on as a substitute for professional advice. Specialist legal advice should always be sought in relation to any particular circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Mondaq Advice Centre (MACs)
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

Use of

You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.


Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.


Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.


A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.


This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.


If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.


This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at and we will use commercially reasonable efforts to determine and correct the problem promptly.