National Farmers Federation slam union claims piece rates ‘rip off’ fruit pickers

Australia’s peak horticultural body will fight for farmers’ access to piece rates and workers to earn “better than a fair day’s pay” after a major workers’ union took aim at the system in the Fair Work Commission this week.

National Farmers’ Federation chief executive Tony Mahar slammed the Australian Workers’ Union claims the piece rate system — where workers are paid for the quantity of fruit or vegetables they pick — was “broken” and “ripping off” workers.

“At a time when farmers are suffering from chronic labour shortages, the AWU has mounted a misleading and membership-driven case, that if successful will not only hurt farmers but workers too,” he said.

The AWU is proposing the Horticulture Award be amended to guarantee workers the minimum casual rate of $25.41 an hour. Piece rates would still be permitted.

Under the current award, piecework rates must be set so workers can earn at least 15 per cent above the award wage, which Mr Mahar said gave workers an opportunity to earn more, while the increased productivity benefited growers.

“A worker on an hourly rate might earn less than $25 per hour over 7 hours and pick 5-6 bins of apples, over the same period, a worker on piece rates might earn $45 per bin, effectively doubling their earnings,” he said. “The risk of putting a minimum hourly wage 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 brought about by COVID border closures.”

VegetablesWA president Damir Kuzmicich believed piece rates could benefit workers and employers “greatly” and supported NFF in its challenge of the proposed amendment.

“Piece rate arrangements provide an opportunity for workers to earn more than the average competent worker, while also allowing both workers and growers greater flexibility in managing work,” he said.

“We hope that piece rates continue to be an option for vegetable growers into the future.”

At a time when farmers are - suffering from chronic labour shortages, the AWU has mounted a misleading and membership- JU driven case, that if successful will not only hurt farmers but workers too.

AWU national secretary Daniel Walton said piece rates would still be permitted under the proposed amendment, but every worker would be guaranteed the hourly award rate, making it easier for workers to understand if they were being paid enough. “If we’re serious about cracking down on wage theft and abuse then we have to put a floor under piece rates,” he said.

“There is no reason we should accept that fruit and vegetable picking exists in an industrial no man’s land outside Australia’s norms and standards. Minimum wage applies to every other job, it should apply here too.”

He said the proposed amendment would have flow-on effects to rural communities and attract more locals to work on farms.

“Workers who earn more, spend more in local shops and supermarkets,” Mr Walton said.

“They pay income tax and GST. They rent houses and build lives in regional areas.

“If we win this case it will help attract Aussies back into a sector where they should be working.”