Australia: Stricter Visa Rules Help to Increase Wages in Mining Industry

Australia: Stricter Visa Rules Help to Increase Wages in Mining Industry

BDO Remsmart Research reveals that wages for several jobs in the mining industry have increased above the heights seen during the growth of the last resources. Australian Western region, in specific, is witnessing a surge in the wages of the mining industry, like Rio Tinto, BHP, and Fortescue Metals Group invest in the latest iron ore mines. Parameters such as more stringent rules on the utilization of international labor have helped put higher pressure on wages, as per the BDO Remsmart.

Research Report on Wages of Mining Workers

A research study on remuneration is given to 35,000 mining workers by advisory organization BDO Remsmart found minimum 12 mining jobs were now demanding greater wages than at the top of the last resources growth.

Companies are saying that they are facing more trouble bringing definite east coast skills, and because the Australian government has removed subclass 457 visas which permitted international citizens to work in Australia now it is very hard to bring and retain international labor.

Foreign labor can still enter below ”Designated Area Migration Contracts”, but Mr. Everingham told that policy was further bureaucratic and less attracting to proficient workers because it did not give the same pathway to the Australian citizenship that earlier skilled migration policies provided.

Positive Sign on Australian Labour Market

This is economics 101. If the number of international workers is limited, then local or native workers’ bargaining power raises, and companies have to increase the wages to bring talent, as well as give more comprehensive training. This is a positive result and is exactly how the labor “market” is assumed to work.

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