The horticulture industry is a deep stain on modern Australia. No other industry combines systematic exploitation of its workers, routine abuse and harassment, and inflicting misery on young visitors and migrants with such extensive political power and a sympathetic media.
No matter how many Harvest Trail inquiries by the Fair Work Ombudsman reveal that most farmers underpay fruit pickers, no matter how many Fair Work Commission judgments expose the scale of award non-compliance within the industry, no matter how many reports of sexual harassment and rape of backpackers make their way into courts, the National Party will always help the industry to access cheap labour, and the media will always run variations of “Australians don’t want to work”/”fruit will rot on trees” stories.
One factor that helps protect horticulture from the opprobrium the conduct of so many farmers should bring on it is the opacity with which it operates. Establishing the truth of claims made about conduct is immensely difficult.
That’s partly because so many employees within the sector — more than half the workforce — are temporary migrants. That includes actual temporary visa holders, foreign students, backpackers and undocumented migrants or those who have come here — often as part of scams run by labour hire companies — pretending to be tourists, only to claim asylum and claim bridging visas while their appeals creep through the legal system.
Temporary migrants have poor language skills, don’t know about Australia’s system of workers’ protections, and may be here only for short periods before returning to their countries of origin.
That’s why rigorous quantitative evidence of underpayment in the sector is hard to come by. The union case in the Fair Work Commission against the piecework rate relied on academic research that employer groups tried to characterise as “anecdotes and stories”.
But what are the actual drivers of exploitation? One common argument is that the constant pressure on farm workers is driven by the pressure applied by the supermarket duopoly to farmers to screw down prices as tightly as possible. But there are crucial intermediary firms within that supply chain from farm gate to supermarket shelf — large packing companies like Costa Group, a billion-dollar international company — which distribute produce to supermarkets. And they often don’t directly deal with farmers, but with broking agents and marketing firms.
And labour supply firms are a key component of the labour supply chain for the horticulture sector: the Fair Work Ombudsman’s Harvest Trail report showed widespread non-compliance with the law by labour hire firms which ranged from large companies to small operations, often using migrant labour. The FWO in its Harvest Trail inquiry complained that its inspectors struggled to keep track of highly mobile workers they wanted to speak to, and often those workers had little idea which farms they had worked on.
One of the upsides of the role played by Coles and Woolworths, however, is that both are subject to modern slavery laws, which require them to report on their actions to investigate, manage and remediate the risk of modern slavery practices in their supply chains. While wage underpayment is not a form of modern slavery, it is often a good indicator that it is going on within a company or sector. The most recent Coles modern slavery statement contains the results of more than 300 modern slavery supply chain audits, with the horticulture industry the key source of risk for the company in Australia. Costa Group’s modern slavery statement focuses on horticulture and identifies particular risks from labour hire companies and the outsourcing of labour by farmers.
Meanwhile, the government carries on as if the horticulture industry is squeaky clean, working hard to set up an agriculture visa to enable the sector to source cheap labour from South-East Asian countries to replace a declining supply of backpackers from developed countries. The National Party routinely asks as spokesperson for the industry, which wields considerable economic power in Queensland (along with the sugar industry, as David Littleproud has just demonstrated).
But many claims made by the industry fail to stand up to scrutiny. Claims throughout last year and this year that fruit would be left to rot and prices would skyrocket due to a lack of foreign fruit pickers have proved wrong. Australian Bureau of Statistics data shows that the price of fresh fruit has fallen 2% in total since the June 2020 quarter, while vegetable prices are down 0.6%. The only price spike was in the June quarter this year, of about 5%, but prices have fallen more than enough in other quarters to offset that one-off, due to strong growing conditions.
Only a concerted effort to boost transparency in the industry, by empowering and funding industrial regulators to accumulate hard data on supply chains and labour conditions, will permit a serious effort to end the deep shame that the horticulture industry represents. That’s assuming the Coalition will ever stop protecting it.
This decision is long overdue. The combination of poor pay and conditions and lack of access to backpacker and new migrant labour put pressure on the industry. Good on the AWU for spotting the opportunity and running the case.
Piece work rates appear still to be possible for the more skilled and experienced workers but the floor of the minimum wage should ensure everyone gets a fair go.
It’s likely that a lot of those affected aren’t union members but the union has done the right thing to establish a standard that has some chance of enforcement.
That’s a good comment and analysis. However piece rates are set so high that if they were tied to hourly rates, no one would be able to achieve them. No worker could exceed per hour by piece rate what they could get by working the legal or relevant award hourly rate. No worker could pick more than $25/hour which is the award rate for their occupational category. This notion that workers could earn more by piece rates than a flat award rate is an out and out furphy or better still, a lie. Such a scheme as a method of payment could only work in some industries. Shearing sheep is a good example which pays better money. But horticulture? A painstaking laborious process entirely different? In horticulture or harvesting fruit and vegetables, not livestock or broad acre farming like wheat, there will always be sharp variations between different pickers with varying physical attributes. It is not as though the strongest wins. The same applies for piece work in the clothing industry. Is seems that the issues really go to the business model of the horticulture industry. I would say that most don’t deserve to be in business as they rely on the ‘coolie’ system of labour. There will always be full employment if no one was paid for their work.
In the old days before temporary labour and labour hire firms piece rates were the norm and picking fruit actually was quite highly paid.
Working in a vineyard when I was young there were ‘professional’ pickers you had to drop the buckets for the grapes in front of them and if they ran out of buckets to fill they would get seriously cranky. I also remember reading a Saturday age story about picking oranges in Mildura and the pay rate by the tub. Experienced and fast pickers could get up to 2 1/2 tubs a day and for that they could make a quite a bit of money. People would often work for a picking season and then slack off for a couple of months because they could afford to do so.
Not sure what conditions are like now but the media reports are not good. I know blaming ‘natives’ for not wanting to pick is a cop out. If you pay them well for hard work under a baking sun there would plenty of people would be interested. The problem is that the system in evolved (or engineered?) to exclude anyone one who is not in a position to be exploited from wanting to due to bad working conditions or unwillingness to pay extra to attract them.
The cane farms may be owned by Australians but all the sugar mills and refineries are all owned by an offshoot of the Singapore government
Ah yes, the good, old days when CSR (Colonial Sugar Refinery) was an Australian company, producing vast quantities of ethanol from the waste product & bagasse.
So much ethanol that we could have duplicated Brazil’s success using it as a petrol additive or straight out substitute.
Report the truth. Many backpacks feel doing the 88 days at any price is worth it to stay in Australia for longer to keep scabbing and working for less. Even working for less they come out ahead of their home country in wages for that kind of job.
They are not all victims. They see it as just part of the price to remain in the country driving down wages. No backpacker would do the labour if they hadn’t done a cost-benefit calculation.
Stop supporting scab labor. Deport those who work for less.
But how would you identify them?
Fair Work should do compliance checks and any migrant found working for less should be deported. That would instantly clear up the industries if you shared the onus not just on employers doing the right thing but on workers too. Currently there is no penalty for ripping off local workers, no incentive to not do it on the workers part.
I’m so tired of the victim narrative when I know so many migrants who are basically con artists. That’s the reality at the bottom end of the market. They know what they are doing and they do it on purpose. Many have no real right to be here. Look at all the fake students – there’s just no consequences for it.
I’m all for valid skilled migration. Deporting a fake student who is working for cash full time as a cleaner is seriously no great loss.
I’m not for skilled migration. The migrants are trained at great expense in the countries they come from. Sometimes these places are quite poor and really need the skills to remain at home. If we’re importing migrants for their skills then it doesn’t say much about our government’s ability to train its citizens and our education systems in general. The shifting of the cost of education from the government to the student is affecting the risk/reward ratio students must make before choosing a course of study.
I worked 20 years in aged care and it has a very high percentage of migrant workers. They were no more or less hard working or dedicated than Australians. I used to wonder how much their communities would benefit if they stayed home instead of seeking their fortunes working overseas. (I mean this figuratively as there’s no fortune to be made). It seems like we are poaching skilled workers from countries that can’t afford to lose them.. and we’re not considering the consequences of our actions.
I guess skilled is the wrong word. I am in favour where there are genuine gaps in the workforce, which may be low paid jobs, and where the person comes here legally and is paid in full.
As for brain drain of foreign countries, I think people have a right to move if they want to and it is legal to do so. I wouldn’t say someone has to stay in a dodgy country because of the lottery of their birth because they owe it to the country to fix the place. That’s not fair. If we have a genuine shortage and they are a legal applicant then sure they have a right to improve their lives.
I just question why we need more cleaners, waiters, shelf stackers and so on when there’s plenty of people on the dole who could do it and the only reason they don’t do it is the interaction between minimum wage and welfare. We do have people available to work. Migration should be for genuine shortages.
Everyone has their own home situation and is nobody’s business where they choose to work and send remittances; Australians are never questioned on where they choose to live globally?
On demographics, Australia is not unique as our dependency ratios are increasing like elsewhere due to ageing i.e. more oldies vs. working age in the permanent population, hence, workforces are supported by a mix of modest permanent skilled migration and higher temporary churnover.
The other major factor is not just workforce gaps etc. but using temporary churn over as net financial contributors paying taxes to budgets in supporting more pensioners and related health care services, while our burgeoning cohort of retirees have modest taxes (if at all); above median age voter cohort is dominating electorates now and in future….
On demgraphics I am yet to be given the business case for unskilled minimum wage labour.
I am not an economist so I am open minded. Maybe I am wrong, happy to be wrong. I just know that on min wage I don’t earn much, pay much tax or spend much. I also know I receive a lot of services from the government. I do wonder how someone like me is going to prop up the cost of an ageing population.
By all means bring in more tax payers if there are gaps in the workforce and it will prop up the tax base. But please explain to me how a cleaner on 35k a year is going to be a huge economic boom to the nation.
Wrong. Australians are questioned about where they live globally. Constantly if they live and work overseas. By foreign governments and our own government. For taxation purposes. For identification purposes. For work purposes. Etc. It is other people’s business where they choose to work. I don’t want someone who is a boiler-maker working here in rural/regional Australia or a scaffolder working on our city building sites when there is an Australian local resident to do the job and the only reason said Australian local resident isn’t doing the job is because prospective/potential employer offers wages and conditions of work below what is the award or going in the work market place because the employer is mean and exploitative. It is my business and I would like our government authorities to stamp this out.
Good to see you haven’t left out your usual Ponzi scheme argument re: more migrants.
Ignore demographics at your peril; the world has increasing dependency ratios and like the UK with Brexit on lack of farm workers, truck drivers etc. Due to ageing workforces compounded by Brexit stopping temporary labour mobility; modern mobility does not stop at state or national borders nor is it one way.
Value of churn over of younger temporaries whether workers, backpackers or students, is not about the salary for whatever amount of work but the taxes they pay inc. GST, PAYE, etc. and services they pay for up front.
Meanwhile not drawing on or able to access public services (requires private insurance), hence, subsidising services for increasing numbers of older Australians, but the same cohort is becoming more and more in demand globally as populations age.
Otherwise, solution is, increase taxes and/or cut services to avoid (undefined) ‘immigration’ and/or empower local workers? Classic master serf relationship from the 19thC…
This Drew’s never ending Ponzi scheme with increasing younger immigration, it isn’t really – it’s younger than retirement and the children are in school requiring schooling and the spouse is at home either keeping house in a domestic servitude situation in which case they are not earning enough to live comfortable and pay the mortgage or where the partner works and both are too tired for parenting and extra curicular activities. These “younger” migrants will retire and demand services from the government of their adopted country. This is a Ponzi scheme and it is a no-win situation for all concerned except the lucky new migrant who gets to have a home in both camps – unlike the local worker.
Punish the victims and do nothing about compliance by owners and ensuring union support; US ‘radical right libertarian’ ideology informing the LNP that kicks down on those not empowered, on behalf of power. It’s why the epithet ‘nasty’ is often deserved.
You are obsesses with libertarians.
My ideology is old school working class Labor. What Labor used to be. Back in the day when a union would physically and possibly illegally blockade the damn gates rather than let in the scab labour. Damn the consequences they’d say.
My social justice politics are old school progressive where one rule of equality applied to everyone not cultural exceptions where we look the other way if a foreign culture is repressive because ‘that’s their culture.’
The world changed, I didn’t. I cannot believe I am asked to welcome with open arms scab labour. The kicking down is kicking down on local working class citizens who are asked to lower their living standards to give a leg up to a new arrival.
Why did we bother to contribute to this country for generations only to be asked to move aside for someone who just got here, that a new arrivals right to work for less matters more. The local working class had their asses kicked the past decade or so and then told they were not the victims, the person stealing from them was the victim. And to add insult to injury we were all told we were dumb racist bogans, even tho many working class were not white and many of the scab labor were.
Can you think of another group who might think “Why did we bother to contribute to this country for
generationsseveral tens of millennia only to beasked to move asideblown away for someone who just got here…”.I am so tired of everyone caring more about migrants rights than local workers.
Everyone is just on and on about the rights of migrants, how they should have jobs here, what we owe them and more.
What about working class local workers who have seen their wages and conditions deteriorate? Migrants should be paid properly, everyone should, but the narrative needs to switch to focusing primarily on locals rights. It is shocking that many working class locals have given several generations of input into this nation only to be thrown aside to focus on the rights of someone who just got here, is a temporary migrant and has lied on their visa and is deliberately working for less.
This country has really shown its local menial workers where they stand and what is thought of them. The right wing love the rich to get richer and the left love foreigners. Sold out by everyone.
And no, it is not about race. Some of the worst offenders of visa fraud are white Brits and many of the locals impacted are those whose families migration previously from non-white nations.
You seem to be conflating ‘migrants’, who have a right to the same pay and conditions as those born here, with people who are working illegally, who I agree should be deported (maybe after a warning).
Make it a condition of people’s visas that they work for legal wages and bam watch it all change over night. Say you’ll deny PR to anyone caught working for less and you’d wipe out the problem in almost one go.
Easy fixes are available if the political will was there.
Yes but even if you make it a condition that they get the award rate or an above award payment, in a real life situation where the employer “negotiates” with the potential employee, the said employer will find a way to rip off said potential employee by, for example, refusing them employment over someone wiling to work for less (as frequently happens), by designating their work as casual, by changing their award, by categorising them as part time, by categorising them as sub-contractors, by preferencing those willing to work piece rates. By also rotating their workforce. By going into receivership in one company and opening up another different Company. Employer scams are the stuff of legend. These practises are next to impossible to enforce given the appalling staffing levels of the regulatory authorities. I gave examples previously in the Central Tablelands, where I worked, of the Dept of Labour and Industry, the State Government instrumentality responsible for policing work place practises, who only had 1 Inspector for an area larger than Greater Sydney. These regulatory agencies have no hope of policing work practises and employment arrangements over such a large area and even if they did, the farmers and their “friends” in town would make such a hue and cry about it they would occupy the news pages and opinion columns of publications like the Bathurst Advocate or the Dubbo Liberal that a coalition State Govt would repeal said legislation and regulation and similarly, Federally as well. Which they did. Which is what happened. Employers and farmers have big mouths and are well connected. Not that did many of them any good when they couldn’t pay their bank debts. I was told by a tech teacher in Bathurst in 1992 that the Orange branch of Westpac had $22 million of bad rural debt that they would never get back. No one gives a damn if a worker suffers or goes broke or loses their job or their home but everyone gets concerned when an employer goes broke or a whole industry is in trouble.
Workers don’t strike anymore because migrants will take their jobs and the Australian workers know this. Strike action was successful in the past because of the existence of full employment. There is no such thing now and the statistics are a big lie for many reasons.
I actually am saying no to immigration because I think that in nearly every case the worker is exploited and en masse, this is resulting in many locals being similarly exploited and in having their work ‘sweated’ and their wages curtailed in their growth. I agree with you largely and feel you are pushing on an open door but I have, and perhaps you have as well, seen on the ground things work differently that in theory. All the things I explained here happen. Employers and farmers are very slippery and treacherous. I was working for a guy in Bathurst from late 1991 to late 1992 when I moved back to Sydney. I was spraying kitchens and thought I was employed as a French Polisher. When I disputed some of his actions and conditions after 1 year, like making me take annual leave when he wanted not when I wanted, he said through his accountant that I was never a French Polisher employed under French Polishing conditions. It was alluded to through my employ that I was a spray painter though this is a trade usually reserved for the automotive industry of which I never worked.
I used to think that immigration can fill gaps and I believe that it has been useful up till the 1980s though I cannot pinpoint exactly when or how it stopped being useful but I don’t believe it can be useful now for the country for the any reasons you have suggested consistently in this forum. We have an oversupply of software engineers. We had an undersupply for sure during the 1990s and 2000s and we definitely don;t need to import abbatoir labour. There is an abundance of locals who can do the job. The companies that employ this labour simply need to pay more as economist like Alan Kohler have suggested.
I agree absolutely with what you say about uber drivers, cleaners and hospo workers generally but remember, regulation means little without enforcement. Like Police embarking on a war against litter or drugs. Difficult and perhaps futile. Without ‘coolie’ labour these businesses would not exist. Why should they?
I don’t think anyone cares more about migrant rights more than local workers. The ideal everyone is arguing for is a minimum standard of employment, and that employers have a duty of care to their employees – migrant or local. No-one is advocating for migrant workers to be paid more than locals, or have better job opportunities than locals. Rather what is being repeated ad nauseum is that migrant workers are susceptible to (and often are) being exploited in ways that undermine workers rights – migrant or local.
Literally no-one is saying that local workers should suffer worse than what foreign workers do, or that the exploitation of local workers doesn’t matter as much as the exploitation of foreign workers.
If that was all migrants, you would have a point. It doesn’t negate the role exploitation plays in it, but it does show a complicity.
When someone comes here on a work visa, which they can do, and as part of the conditions of the work visa the employer has over their head the ability to get them deported, you can’t simply say it’s foreign workers lying about why they’re here in the first place. Same goes for students who are made to work longer hours to get the same pay. The system is set up to give employers the power!
Obvious? We must be operating in different social and intellectual circles, because I’ve never talked to or read anyone on the left who cares about foreign exploitation but is indifferent to the problems of local exploitation. Can you provide any examples of those on the left displaying this?
From what I’ve read and talked with others about, the concerns about work exploitation would apply to local and foreign workers alike, that notions like fair working conditions and a liveable wage should apply for work. I’ve even read and talked to those on the left who are against the way skilled visas are used to undercut and lock out local workers.
By their David Beckham style accents
“Deport those who work for less.”
Isn’t the threat of deportation one way that companies get people on visas to work for less? This solution seems to be playing into exactly the sort of thing that allows for employers to exploit workers in precarious positions.
Tying living in Australia to work is the means of exploitation. This solution seems about as feasible and sensible as locking up women whose husbands abuse them for allowing the abuse to happen…
So your suggestion is either they refuse to work for what they’re offered, in which case they’ll be deported, or if they take it because employment is a necessary condition, they’ll be deported if found out?
Employment is tied to the visa. Money is needed for people to live. Those two conditions won’t change the amount of exploitation. Just look at the US and their draconian laws around foreign workers. Exploitation of immigrants is rife there even with such laws in place. Why would you think it would work in Australia when it doesn’t work in the USA?
Why is our farm products cheeper in Asia are the buyer’s in Australia of fruit and vegetables subsidizing exports
The brains trust that decreed the MIA could grow rice – for sale to Asia!!!? – forgot the minor factor of water demand, ancient salty soil and the target market had some familiarity with the product, ideal growing conditions and cheap labour well experienced in paddy cultivation.
So we have to subsidise rice exports, though give it away might be more accurate + the already minimal soil nutrient & water to grow it being wasted.
Sheer genius.
In some ways, it’s quite amazing that feudalism has found a 21st century proxy, combined with a path to political legitimacy that’s gone from all other industries.
All I can say when I read this is that it’s no wonder people leave the bush for the economic opportunities of city life. Mining can attract people to the regions, so why should we have any sympathy that farming as an industry can’t? I thought we were all about an agile workforce in Australia…