Piece rates: Unions claim ‘rampant wage theft’ on farms ahead of Fair Work hearing

Farmers have hit back at an explosive union report making new claims of rampant wage theft on farms. It comes ahead of a Fair Work hearing into piece rates.

How piece rates are applied will come under scrutiny by the Fair Work Commission next month. Picture: Zoe Phillips

Almost 80 per cent of backpackers are underpaid with some piece-rates averaging as low as $9 a day, a new report has found.

The explosive study released today, by Unions NSW and the Migrant Workers Centre, states wage theft on farms is rampant, particularly for those on working holiday visas.

It comes just weeks before a Fair Work Commission hearing into piece rates is scheduled to begin on July 13.

The union’s online survey of more than 1300 farm workers, which was open over six months between September 2020 and February 2021, found 78 per cent had been underpaid at some stage, while 15 per cent indicated the earned between $0-7 per hour under piece rate agreements.

The report was accompanied by stories from backpackers, including one woman who said she was forced to “dumpster dive” as she hadn’t earned enough to buy food.

Farmers have hit back at the latest claims, and called on the unions to report cases to the appropriate authorities, instead of airing them in the media.

“It is constantly disappointing these allegations can’t be brought to the police of Fair Work Ombudsman,” Victorian Farmers Federation president Emma Germano said.

“It’s incumbent on the unions to actually report these matters to the agencies that can actually do something about it.”

Unions NSW and MSC are backing the Australian Workers Union’s application to set a floor rate for piece-rate workers, to guarantee they will earn a minimum wage.

The case will be heard by the Fair Work Commission next month, where AWU will argue the current Horticulture Award does not ensure proper pay or protection against abuse of piecework rates.

The AWU is backed by several unions, and the Victorian, Queensland and WA state Labor governments.

The National Farmers’ Federation will argue, however, that the AWU’s application will lead to a “series of negative consequences” that will effect employees as well as make industry less productive.

“Growers are subject to extensive price pressure from both supermarkets (who are a main source of sales),” the NFF’s submission to the FWC read.

“There is a serious prospect that either the administration of the AWU application (or a shift away from piece rates in response to it) will put economic pressure on growers.”

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