ISSUE 61 — FEBRUARY 2022
Fair Work rules farm workers be paid the minimum hourly rate Harvest farmers in Australia have traditionally been paid in line with the piece rate system, a system where a worker is paid according to the volume of produce they harvest — the more fruit or vegetables harvested the more a worker is paid. But in some cases, the piece rate system for payment has led to exploitation whereby some employers have found loopholes in the system and used these to exploit and undercut their workers. In December 2020 the Australian Workers Union (AWU) made a case to the Fair Work Commission (FWC) to amend the horticulture award to ensure farm workers receive the minimum casual wage of $25.41 an hour. The AWU presented findings to the FWC to support their case, including research findings suggesting the average piecework picker was paid just $11.69 an hour. The AWU were successful in their case and in November 2021 the FWC ruled that those workers who are paid a piece rate must now, at least, be paid the minimal hourly rate. The FWC provided the following statement "These characteristics render the seasonal harvesting workforce vulnerable to 20
exploitation. The existing pieceworker provisions in the Horticulture Award are not fit for purpose, they do not provide a fair and relevant minimum safety net as required by the Act." However, not all are happy with the change. In an interview with the ABC, Tony Mahar from the National Farmers Federation said “We’re disappointed with the outcome. This means increased costs for farmers and reduced flexibility. And increased pressure on supermarket prices at the end of the day.” The ruling has been proclaimed by those in the industry as one of the most significant industrial decisions of modern times.
