Piece rates: NFF, AWU go head-to-head in landmark Fair Work Commission case

Farmers and unions will go head-to-head in the Fair Work Commission hearing that could change the face of horticulture. Here’s what to expect.

Backpackers could be guaranteed a minimum wage under changes to the piece rates arrangement the Australian Workers Union is seeking.

Sixteen farmers have been ordered to prove they’re paying their workers correctly, as piece rates come under scrutiny this week.

A Fair Work Commission hearing into the horticulture piece rates, beginning today, could spell the end of the contentious payment method, if the Australian Workers Union gets its way.

It’s calling on the commission to amend the horticulture award to set a floor rate for pieceworkers, so every fruit and vegetable pickers is guaranteed at least the minimum wage.

The AWU – backed by the United Workers Union, as well as the Victorian, Queensland and WA state Labor governments – will argue the current award does not ensure workers will receive proper payment, nor protect against abuse of piecework rates.

The National Farmers’ Federation says a minimum rate would bump up fruit and veg prices along the supply chain and have negative consequences for the industry.

“This case has the hallmarks of many of the landmark disputes the NFF has fought on behalf of farmers in its 42 year history,” NFF chief executive Tony Mahar said.

A number of farmers have put forward evidence for the NFF, arguing their pieceworkers earn above award rates.

The AWU has sought all witnesses produce pay slips or other documentation to back up their evidence. There are no allegations of underpayment or otherwise.

AWU national secretary Daniel Walton said piece rates “violate” the principle of “a fair day’s pay for a fair day’s work”.

“The farming lobby loves piece rates because their complexity is a great place for wage thieves to hide,” he said.

“Currently you don’t even to record how many hours someone is working. If we’re serious about cracking down on wage theft and abuse then we have to put a floor under piece rates.”

Mr Mahar said the AWU had mounted a “misleading an membership-driven case” that would hurt farmers if successful.

“The risk of putting a minimum floor price on piecework rates is that growers will see productivity and the pool of suitable workers drop in the midst of an already chronic labour shortage,” Mr Mahar said.

The lead-up to the hearing has seen multiple stories emerge of workers being underpaid. A recent Unions NSW and Migrant Workers Centre survey found some piece rates were averaging as low as $9 a day.

Mr Mahar said any employer who ripped off workers must be held accountable and urged workers to report their negative experiences to the Fair Work Ombudsman.