Does a DAMA Agreement Mean You Have to Be a Unionised Site?
Many regional employers hesitate when they first hear about the Designated Area Migration Agreement (DAMA).
A common concern is:
“If I apply under a DAMA, does that mean my business has to be unionised?”
It’s an understandable question - and the answer often surprises people.
The Short Answer
No, applying for or operating under a DAMA does not make your business unionised, nor does it require you to join or seek approval from a union.
However - and this is where the confusion arises - the union consultation process still plays an important role behind the scenes of every Labour Agreement, including the DAMA.
Let’s unpack the difference.
Understanding Union Consultation vs Union Membership
In Australia’s migration system, there’s a clear distinction between union consultation and union involvement in your business.
Union consultation is part of the Labour Agreement approval process, not your day-to-day workplace operations.
It ensures that the agreement protecting foreign workers’ rights has been reviewed by key industry stakeholders, including unions - but that responsibility usually falls to the regional body, not individual employers.
Who Handles Union Consultation Under Each Labour Agreement Type
Key Takeaway:
If you’re using a DAMA, the union consultation requirement is already fulfilled at the regional level through the Designated Area Representative.
Your business does not become a union site by participating in the DAMA.
Why Unions Still Matter in the DAMA Context
Even though you don’t deal with unions directly, there are three important compliance touchpoints where union principles influence the program:
1️⃣ Fair Pay and Conditions (Modern Awards)
Every sponsored worker must receive terms and conditions no less favourable than an equivalent Australian employee.
That means following the relevant Modern Award - which is often developed with strong union input - regardless of whether your workplace is unionised.
2️⃣ Proving the Market Salary (AMSR)
You must be able to show your nominated salary meets or exceeds the Annual Market Salary Rate (AMSR).
For most employers, that means referencing current award rates, payslips from local workers, or Fair Work wage tables - not union membership lists.
3️⃣ Compliance and Adverse Information
If your business has ever been investigated by the Fair Work Ombudsman or has a history of pay or safety disputes (often stemming from employee or union complaints), this must be disclosed in your DAMA application.
These issues don’t automatically disqualify you, but failure to disclose them will.
The Practical Bottom Line
Here’s what you do and don’t need to do as a regional employer using a DAMA:
The DAR (such as RDA Orana, RDA Far North, or RDA Darwin) acts as your liaison - handling stakeholder consultation and endorsement before your sponsorship application goes to Home Affairs.
Why This Distinction Matters for Regional Employers
Understanding this separation between union consultation and unionisation can save weeks of hesitation and misinformation.
It means you can confidently pursue a DAMA knowing:
You’re operating within a lawful, government-approved system.
The compliance burden of stakeholder consultation is already handled.
You retain full control over your employment structure — unionised or not.
Final Thought
The Designated Area Migration Agreement is one of the most practical tools available to regional employers facing skilled labour shortages.
And no - it does not require you to be a union site.
What it does require is compliance, fairness, and transparency - ensuring overseas workers are treated the same as Australians while giving regional businesses a fighting chance to grow.
Related Articles that you may enjoy
Source: AU Visas Employer Guide Series
Disclaimer
The content provided is here is for informational purposes only and does not constitute immigration or legal advice. It is subject to change. Consult an Australian MARA registered agent or lawyer for professional advice before making any application
👉Contact AU Visas today for a Professional Opinion on Your Situation.
Glossary of Key Terms
DAMA (Designated Area Migration Agreement) A regional migration agreement between the Australian Government and a designated area (such as a region or city) that allows local employers to sponsor overseas workers in additional occupations and with agreed concessions not available under standard visa programs.
Designated Area Representative (DAR) The regional body authorised to manage a DAMA on behalf of the area (for example, an RDA). The DAR handles union and stakeholder consultation, endorses employers and occupations, and liaises with the Department of Home Affairs.
Labour Agreement A broad term for negotiated arrangements between an employer, an industry or a region and the Australian Government that allow access to additional occupations or concessions. Includes DAMAs, company-specific and industry labour agreements.
Company-Specific Labour Agreement (CSLA) A Labour Agreement tailored to a single employer, based on its specific workforce needs and evidence of local shortages. The employer must typically consult directly with relevant unions as part of the application.
Industry Labour Agreement (ILA) A Labour Agreement negotiated by a peak industry body covering common workforce needs across that sector. The industry body handles union consultation, and eligible employers can sponsor workers under the agreed terms.
Union Consultation The process of inviting relevant unions to comment on proposed Labour Agreement settings, such as occupations, pay and conditions. It occurs during the agreement negotiation stage and does not make individual workplaces unionised.
Unionised Site / Union Membership A workplace where employees are members of a union and may have union delegates, enterprise bargaining agreements or active union representation. This is separate from migration-related union consultation processes.
Modern Award A legal instrument setting out minimum wages, penalty rates, allowances and conditions for specific industries and occupations. Sponsored workers must receive at least the award conditions that apply to equivalent Australian employees.
Annual Market Salary Rate (AMSR) The typical wage an Australian worker would receive for the same role in the same location. Sponsors must pay at least the AMSR to ensure overseas workers are not underpaid relative to locals.
Fair Work Ombudsman (FWO) The Australian regulator responsible for enforcing workplace laws, including pay and conditions. Findings or investigations by the FWO can be relevant when assessing a business’s suitability to sponsor under a DAMA or Labour Agreement.
Adverse Information Negative findings or allegations about a business’s compliance record, such as underpayments, safety breaches or visa-related sanctions. Adverse information must be disclosed in sponsorship and Labour Agreement applications.
Sponsorship Obligations Legal duties that approved sponsors must meet, including paying correct wages, keeping records, notifying Home Affairs of key changes and not recovering certain costs from sponsored workers.
Fair Pay and Conditions The requirement that overseas workers receive wages, hours and entitlements at least equal to those of Australian workers in comparable roles, usually determined by Modern Awards, enterprise agreements and the AMSR.
