THIS week, a Fair Work Commission decision ruled that farmers will no longer be able to pay piecework provisions for workers, but instead must pay a minimum wage of $25 an hour.
This may seem like good news for pickers, but there’s always a bigger picture to consider.
Unfair generalisations about growers have been broadcast in recent days. Growers have again been accused of systemically and deliberately ripping off their workers.
While we know there are some bad apples, as in any industry, the overwhelming majority of farmers do the right thing and have ethical standards they uphold.
While no one would dispute the need for pickers to be fairly paid and cared for, a blanket minimum wage jeopardises an already struggling industry, and does not necessarily mean a more equitable system.
The problem with this blanket regulation is that it fails to address the flaws in the piece rate system. It is true that the current system is imperfect and complicated. It needed improvement, not abolishment. At present, the piecework system provides rates that reward workers for productivity and provides an incentive for workers to go the extra mile.
These changes also do nothing to prevent unscrupulous labour hire contractors engaging in exploitation.
The agriculture and horticulture sectors are already facing one of their worst labour shortages in recent history. This recent decision is out of touch with the local on-the-ground impact.
The Australian Workers Union claim this is a win that will reduce the exploitation of seasonal workers. If they were serious about supporting these workers, they would have supported my call for a status resolution for undocumented workers in the industry, instead of opposing it.
The AWU have shown by their statements that they are against common sense proposals to improve the workforce situation in horticulture.
Once again, it’s local producers that will bear the brunt of this decision. The horticulture industry has been struggling for some time with cost pressures. As wages increase, it’s highly unlikely growers will see reciprocal recompense from the major supermarkets. With margins that are already paper thin, this decision will put pressure on farming families, who work hard to put food on our tables. Ultimately, we will all pay.
