New minimum wage for piece workers has farmers concerned

April 28 heralds the beginning of a new era for farmers, with new rules mandating they pay piece workers a minimum hourly rate.

Fruit and vegetable growers are bracing for higher wage bills from this week as new legislation kicks in guaranteeing piece workers a minimum daily wage.

The directive follows a long-running campaign led by worker unions to abolish piece worker rates they described as robbing workers of overtime entitlements.

As of Thursday, changes to the Horticulture Award take effect that mandate workers paid a piece rate are paid at least 15 per cent above the minimum hourly rate, plus a 25 per cent loading for casuals. For casuals, this equates to at least $29.22 an hour and for full- and part-time workers, at least $23.38 an hour.

The rates are based on the Fair Work Ombudsman’s finding that a competent worker should be able to earn the target rate of 15 per cent more than the minimum wage.

However some farmers argue this does not take into account a worker’s training period or slower workers, whose productivity would be well below that of a competent worker, yet they are still required to be paid at the higher rate.

The changes also come with new record keeping obligations, including the hours worked by the piece worker and the piece rates applied.

Apple and Pear Australia’s head of government relations and advocacy Jeremy Griffith has been urging growers to prepare months in advance for the changes, given the “significant burden” of record keeping falls on the farmer.

“In addition to managing workers on an hourly rate, growers will have to meet new reporting and compliance requirements under the new arrangements,” Mr Griffith said.

Cherries Australia president Tom Eastlake said the lack of a trainee wage would cost the industry dearly.

“We made the case (to FWO), ‘how about we have two weeks to train on a percentage of the casual wage?’ But no, it’s a blanket rule. Anyone who has to train staff will put them at a very distinct disadvantage,” Mr Eastlake said.

Seasoned pickers usually earn well above the piece rate. It is feared the slower or less motivated workers however will be the ones costing farmers, who are already battling a years-long labour shortage.

Citrus Australia chief executive Nathan Hancock said the greatest concern was low productivity.

“Whether it’s inexperienced workers, ‘grey nomad’ workers … There’s also the risk that workers take advantage of the floor and simply don’t work at a productive rate. It’s very difficult to keep an eye on 30-40 pickers in a citrus orchard,” Mr Hancock said.