AS we reported on earlier this year, at the height of COVID amidst the dramatic shortage of fruit pickers, the Australian Workers Union had moved to secure a minimum wage for farm workers at the Fair Work Commission in place of piece rates frequently used in the industry.
The Fair Work Commission has ruled farmworkers and fruit pickers who are paid on piece-rate payments must be guaranteed a minimum wage under the Horticulture Award saying that the ‘existing pieceworker provisions’ in the Horticulture Award are ‘not fit for purpose.’
AWU national secretary, Daniel Walton, said “The ruling is one of the most significant industrial decisions of modern times.”
The application by the AWU was supported by the state governments of Queensland, Victoria and Western Australia as well as the Australian Council of Social Service.
The National Farmers Federation (NFF), Australian Industry Group and Australian Fresh Produce Alliance were among those opposed to the changes.
Horticulturalists have argued that piece-rates allow workers to earn more than the minimum wage, however, the AWU found that many people working in the industry received far less.
There has also been reluctance by local workers to work under piece rates conditions creating a vacuum that has been over the years, filled by foreign workers.
Local Member for Nicholls, Damian Drum said, “Piece rates have proven a useful means of providing an incentive to work in horticulture and industry will need to consider the implications of this draft determination.
“Under the draft determination, piece rates can still be used to encourage productivity – that is good news. However, the Fair Work Commission has proposed that a minimum hourly rate also apply.”
Many growers have suggested that on piece rates, workers get more than the minimum wage. Other growers have suggested that many farmers will go broke if they are required to pay a minimum wage suggesting that, contrary to the grower’s argument, most workers are not getting anywhere near the minimum wage.
There is a dominating need that growers should aim to get a better deal from their buyers, the supermarket chains, and have a legislated fair pricing structure similar to what European farmers and workers benefit from.
Local Member for Shepparton District, Suzanna Sheed, believes the decision will impact on some growers and not so much on others who take responsibility for their workers. It may also press growers to look at the contractor system where much abuse has been reported to arise and seek change at that level.
“If they don’t clean up their own patch, it is inevitable that someone will come and clean it up for them.”
This new Fair Work decision may also have a positive flow on effect where it’s likely to see more local workers return to take up positions in agriculture rather than relying so heavily on foreign workers as we now do.
