Mixed reaction to FWC pay ruling

Piece rates pay workers for the amount of fruit or vegetables they harvest; the more they pick, the more they earn.

The Australian Workers Union lodged a claim with the FWC, arguing every worker should be guaranteed a minimum rate of $25.41 an hour.

The Fair Work Commission agreed, saying the minimum wage was essential to ensure pickers were paid properly.

"The Full Bench was satisfied that the insertion of a minimum wage floor with consequential time recording provisions in the piecework clause is necessary to ensure that the Horticulture Award achieves the modern awards objective," it ruled.

"The existing pieceworker provisions in the horticulture award are not fit for purpose,

"They do not provide a fair and relevant minimum safety net.

"The full bench was satisfied that the insertion of a minimum wage floor with consequential time recording provisions in the piecework clause is necessary to ensure that the horticulture award achieves the modern awards objective."

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Kevin Sanders, owner of Sanders Apples, Three Bridges said he felt there was real benefit in the ruling.

"There are people, obviously, who have been defrauding pickers of their money; that's been going on for some time," Mr Sanders said.

"It's not a large majority, but you only need a few cowboys to make an industry look terrible.

"And one is one too many."

Mr Sanders said the case put by the National Farmers Federation to allow piece rates had merit.

"It shouldn't affect growers, if they are going the right thing."

He agreed FWC inspectors needed to follow up on the new ruling.

"Over the years, we have been hammered by the authorities, because we are in range (of Melbourne) and it's easy to come out and visit on a day trip."

He said while his orchard had not been visited by FWC inspectors, any enforcement should be done with compassion.

"If they come with a small stick and a large carrot it works really well.

"It's when they do it the other way around that growers complain.

"I can think of many instances were we have attended to occupational health and safety issues with the advice and co-operation of the department

"I think we have improved, over time, because of that."

He said he believed the determination would help stamp out exploitation

"I can't see how it can't - if you have worked 10 hours you need $225 basically, I don't know how you get around that."

The next step would be to stamp out cash payments and charge too much for on-site accommodation.

"That's a difficult game," he said.

"There are a lot of very clever people out there, if they were as clever in their businesses as they are with dodging stuff, then things would go a lot better.

"We know people can't undercut us on price, because we know their costs are going to be the same as the rest as the same of the industry."

Armour's Orchard orchard manager, Nilma, Tom Phillips said it would mean workers would be at least paid the minimum wage.

"It's my understanding under the piece-rate provisions that if workers failed to make at least the minimum wage, they were meant to get topped up.

"In practice, places didn't always do that - perhaps there were some loopholes around it.

"I don't think it's a bad thing

"It was saying if you were training and getting started you could be paid an absolute pittance and that gives the industry a pretty bad name."

He said Armours did not pay piece rates.

"It's legally a bit of a minefield and it's a bit hard to do."

He agreed it would level the playing field.

"Those who have been using piece rates and stretching rule of law are going to have their production costs brought up to a similar level to those who have been doing their best to do the right thing."

But Victorian Farmers Federation president Emma Germano said the FWC determination did not sort out any of the things that had been unclear about how to apply the piece-rate calculator.

"Average competent worker rates have not been sorted out," Ms Germano said.

She said the FWC was trying to solve the problem of exploitation, but it wasn't necessary to do what it did to stamp it out.

'It would have been great to see them unpack the piece rate calculator and give some really clear guidance as to how that is supposed to be used," she said.

"That hasn't happened in this determination."

Without proper enforcement, it would make no difference.

"If you have an employer who is determined to underpay their staff, this doesn't change any of that.

"'It's always been about a playing field which is not level."

It was also up to retailers and the wholesale markets to ensure they were purchasing fruit and vegetables from growers who were not exploiting their workers.

Some workers would be getting paid well above the minimum wage.

"People who should be earning $40 or $50 an hour, and there are definitely people who make that money under piece-rate agreements, are now potentially not going to be making that amount of money.

'Does it make more sense to employ casuals, and just put them on an hourly wage, or do we still go with a piece rate agreement, which prevents us from having to pay overtime for casuals?

"We now have to work out how to do that calculation."

She said a certain pay rate should be guaranteed, topped up with productivity bonuses.

'You need to ensure the workers on your farms are worthy of being paid the base rate."

Fruit Growers Victoria Grower Services manager Michael Crisera said it would reduce the pool of available workers.

"What it means is that we can't afford to keep workers who are not productive on the farm," Mr Crisera said.

"I just think people at that level don't understand the implications of what it means for growers.

"We all want to pay workers a fair days pay for a fair days work."

He said it could cost up to $100 for a person who only picked one or two bins a day, but retailers were paying only $80.

"Productive workers are still going to get the piece rate, and still earn above the award."

He said workers who were being trained, or those who wanted to come and help and only pick a few bins a day, would now have to be paid the minimum wage.

"Now we will have to have the stopwatch on them."

Growers would have to absorb the additional costs, as they could not be passed on.