Coles, unions push for national worker accommodation standard

The report commissioned by Coles and worker unions has “raised a few eyebrows” among farming groups.

Coles has partnered with an alliance of unions to call for a national standard for horticultural worker accommodation.

Australia’s second largest supermarket chain commissioned research alongside the Retail Supply Chain Alliance – made up of the Transport Workers’ Union, the Australian Workers’ Union and the Shop, Distributive and Allied Employees Union – into horticultural farm worker rights and their accommodation.

The final report by consultants Deloitte, published on Friday, found Australia lacked a common standard for worker accommodation, insufficient enforcement of the varying rules that do exist and limited transparency around worker deductions, such as rent.

The report recommended developing a single enforceable standard for accommodation with consequences for noncompliance, and increased investment into quality regional accommodation for horticulture workers.

Coles’ partnership with unions to the exclusion of the farmers supplying their goods, and their joint call for a national accommodation standard surprised many in the farming sector, which has long called for national labour hire licensing legislation to ramp up regulation and compliance.

Vegetable farmer and Victorian Farmers Federation president Emma Germano urged Coles to stick to its core business.

“The sentiment is right, but the responsibility always lands with the grower. Where’s the responsibility Coles takes to pay people adequately,” Ms Germano said.

National Farmers’ Federation chief executive Tony Mahar said the report had “raised a few eyebrows”.

“There’s all this activity underway, with PALM standards, industry schemes, our call for national licensing of labour hire … now there’s this baffling contribution saying what we also need is an enforceable national standard for accommodation. The conversation on these matters is already three steps ahead of this report,” he said.

Mr Mahar said the report overlooked the crux of the issue, which is a lack of quality, regional accommodation.

He however welcomed one recommendation that called for cost-sharing along the supply chain.

“We hope that is a sincere offer if they’re serious about wanting to impose additional costs on their suppliers,” Mr Mahar said.

Coles signed an ethical supply chain accord with the RSCA in 2019, three years after it released its first iteration of its ethical sourcing worker accommodation guidelines, a three-page document covering among other things rental fees, access to heating, airconditioning, ventilation and light, and security.

Coles’ latest modern slavery statement lists 10 compliants made about produce suppliers between July last year and June 30. One instance of cash payment was uncovered and a case of inadequate record keeping, but no allegations of underpayments or illegal labour were substantiated.

When asked why Coles commissioned the report given its suppliers must already adhere to its modern slavery act requirments, a spokeswoman said: “The purpose of the report was to better understand the situation and experience of accommodation for horticulture workers. It is clear that this is a complex, industry-wide issue that requires an industry-wide response,” a Coles spokeswoman said.

Accommodation for horticulture workers is often in on-farm ancillary housing or in nearby towns, with planning rules for approval of these facilities governed by local councils.

All employers wishing to recruit workers through the Pacific Australia Labour Mobility visa scheme must provide a “minimum standard of accommodation” along with photographic evidence.