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- The Australian Workers Union (AWU) wins a historic case against the farm lobby after the Fair Work Commission rules that all farmworkers will be entitled to a $25.41 minimum wage
- Fair Work will amend the Australian Horticulture Award to guarantee farmworkers are paid by the hour rather than based on the amount of fruit or vegetables harvested
- AWU National Secretary Daniel Walton said this week’s win ranks among the “great victories” of the Union’s 135-year history
- However, the move is opposed by several peak farm lobbies in Australia and could still be challenged in the High Court
- Queensland industry body Growcom said the decision will work against farmworkers, not for them, as employers will not be able to sustain the higher labour costs
The Australian Workers Union (AWU) has won a historic case against the farm lobby after the Fair Work Commission ruled that all farmworkers will be entitled to a $25.41 minimum wage.
Fair Work will amend the Australian Horticulture Award to guarantee that farmworkers are paid per hour worked rather than based on the amount of fruit or vegetables they harvest per day, which is the current payment arrangement for the industry.
The AWU argued that farmers were able to manipulate these piece-rate arrangements to pay fruit pickers and other farmworkers as little as $3 per hour.
As such, AWU National Secretary Daniel Walton said this week’s win ranks among the “great victories” of the Union’s 135-year history.
“Fruit pickers in Australia have been routinely and systemically exploited and underpaid; too many farmers have been able to manipulate the piece rate system to establish pay and conditions far beneath Australian standards,” Mr Walton said.
“The changes our union proposed, and that the FWC has now accepted, will put a safety net under fruit pickers to ensure they get what every worker in Australia deserves: a fair day’s pay for a fair day’s work.”
He said the effects of the new wage rules will ripple across regional and rural Australia where workers who earn more will now be spending more.
“From now on if you’re making less than $25 an hour fruit picking in Australia your boss is breaking the law and stealing from you.”
The amendments to the award were opposed by several peak agricultural lobby groups including the National Farmers Federation, the Australian Fresh Produce Alliance, and the Australian Industry Group. Fair Work’s ruling could still be challenged by these groups in the High Court.
Growcom: Decision “undermine’s individual initiative”
Growcom, the peak horticultural representative body for Queensland, said on Thursday the decision to introduce minimum wage laws for farmworkers would achieve the opposite effect of what’s intended by the AWU.
Growcom CEO Stephen Barnard said in a statement labour is the “most significant” input cost for many growers, and many employers will no longer be able to afford to offer piece rates because they can’t pay hourly rates for unproductive workers.
“Most significantly the decision is also another blow for individual workers within our industry who are only trying to get ahead, and who will now have far fewer employment options where they can make great money through their own hard work and initiative,” Mr Barnard said.
“This is the second successive change the Fair Work Commission has made to the Horticulture Award, against the advice of the industry, which works against the interests of workers.”
He cited a 2019 decision to introduce overtime provisions into the horticulture award as a similar decision that worked out poorly for workers.
According to Growcom, 60 per cent of employers said they had staff members resign over a reduction in their hours because farmers could not afford the overtime provisions.
“If they can’t wear these increased costs of offering piece rates, then our real concern is that we’ll see another exodus from horticulture of the most willing and motivated workers right in the middle of a severe labour shortage when we need them the most,” Mr Barnard said.
McKell Institute: “Widespread underpayment”
Nevertheless, this week’s Fair Work decision follows a report from the McKell Institue that the horticulture industry was rife with wage theft and “unscrupulous labour-hire practices.”
It should be noted that the report focused primarily on the New South Wales blueberry industry.
Among other claims, the McKell report alleged Working Holiday Makers — who make up a large portion of farmworkers — were underpaid through an “intentional misinterpretation” of piece rates that kept wages well below minimum wage.
The McKell report also claimed the NSW blueberry industry was impacted by coercion, illegal labour hire practice, and a culture of silence.
