Piece Rate Confusion at an All Time High

Article by: Hari Yellina

Changes to the piece rate award, which took effect in April, have left growers perplexed. Under the horticultural award, workers picking fruit must earn a minimum pay of $25.41, according to the Fair Work Commission. Employers will be forced to keep track of their employees’ working hours. The biggest issue, according to Jonathon Moss of Mossmont Nurseries in Warburn, is a lack of comprehension of the changes. “I’ve read through everything and I still don’t understand because it’s all in this legal jargon and I’m completely perplexed,” he explained. Last year, Mr Moss submitted a proposal and testified at a Fair Work Commission tribunal about the merits of the present piece rate arrangement.

“I tested my workers by having them execute the identical task with and without piece rate, and they were 50% less productive (without the piece rate),” he stated. If you ask the workers, piece rate is what they prefer, according to Mr Moss. “They can earn far, far more on a piece rate than they can on an hourly basis,” he remarked. However, given the increased complexity of employer regulations, Mr Moss is considering abandoning piece rates entirely and going to hourly wages, which will present its own set of issues. “We’re going to smack it in the face and possibly work out a deal with the workers where if they’re more productive, they’ll earn a bonus”, he stated.

“With all these additional things, it’s too difficult.” Because employees are paid hourly, they must work less than 304 hours in eight weeks or face penalty hours. He explained, “We can’t afford to pay penalty rates; otherwise, we won’t be able to earn a profit.” Mr Moss stated that in the future, he will have to limit workers’ hours to stay under the barrier, but that this could lead to some people quitting if they are dissatisfied with their employment. “I have to rely on the reality that I wish it doesn’t happen, but it will,” he explained. The new approach will be a “logistical nightmare” for Griffith citrus grower Joe D’Aquino.

“It’s difficult because I’m only a one-man show here,” he explained. “If I have to do that new piece rate, I’ll have to get someone else to come in and do it because someone has to keep an eye on them when they clock on and off and when they sleep.” “This isn’t your typical 9-to-5 office job.” Mr D’Aquino explained that because pickers may come and leave multiple times during the day and work until 11 p.m., the previous system was simpler because all he needed to know was who selected what. “I don’t know why they changed it since the piece rate was easier,” he added. “They came when they wanted, they left when they wanted, and the job was done.”

“It’s difficult because I’m only a one-man show here,” he explained. “If I have to do that new piece rate, I’ll have to get someone else to come in and do it because someone has to keep an eye on them when they clock on and off and when they sleep.” “This isn’t your typical 9-to-5 office job.” Mr D’Aquino explained that because pickers may come and leave multiple times during the day and work until 11 p.m., the previous system was simpler because all he needed to know was who selected what. “I don’t know why they changed it since the piece rate was easier,” he added. “They came when they wanted, they left when they wanted, and the job was done.”

“Growers have a lot to think about, and if they do everything, they’re worried about whether they’re complying, or whether there’s anything else they need to do.” Harvest has been low this season, according to Mr Mancini, due to hail damage that has degraded crops. He said, “We’ll see the season out and hope for a better one next year.” “Unfortunately, Mother Nature was not on our side this year, but we must persevere.” Mr Mancini stated that the pressures on certain growers were too great, and that the GDCGA, in collaboration with the wine grape growers’ industry, was working on a plan to offer to the government to assist those who wanted to leave to transition to another type of horticulture.

“Right now, switching into different horticulture is really expensive,” he said. “At the end of the season, there are usually folks who declare they’re losing money and want to leave. “People don’t have the financial means to get out of it, so they stay on a downward spiral until they lose their family farm,” says the author.