For the first time workers on Australian farms will be guaranteed a minimum rate of pay when changes to the Horticulture Award come into effect on April 28.
The Fair Work Commission set the deadline for major changes to the award on Tuesday, having determined last November that a minimum floor price should be set for workers paid a piece rate.
A piece rate is when a worker is paid according to the amount of produce they harvest — so the more fruit or vegetables harvested the more a worker is paid.
Farm groups argued before the commission that the introduction of a floor price would discourage productivity and would see the most productive workers leave the industry.
But in its final decision, the commission described those assertions as "speculative and unsupported by any evidence".
The commission was scathing as it responded to one farm business, which had contested paying the award's conditions, by stating its submission demonstrated "a lack of awareness of the existing award obligations".
The final decision means workers under the Horticulture Award must be paid a minimum $25.41 per hour.
Workers can still be paid a piece rate, which must allow for the average worker to earn the equivalent of at least 15 per cent above the casual rate.
Employers will also be required to record the hours worked by the piece worker and the rate applied to the hours worked.
Win for workers, union says
The Australian Workers' Union (AWU), which first lodged the submission with the Fair Work Commission in December 2020, and had the backing of the federal Opposition, says it's a great outcome for workers.
"[The decision] means piece rates can still exist, you can still earn in excess of the award, you can still be incentivised," AWU national secretary Daniel Walton said.
"But what it also guarantees is if you're working 30, 40 or 50 hours a week, that you're at least going to get your minimum wage entitlements for those hours worked.
"That's not been happening today, but from the 28th of April, that's what will be happening going forward."
Agriculture Minister David Littleproud has previously suggested that changes to the piece rate could raise prices at the supermarket, but Mr Walton did not believe the changes would have any impact on the cost of fresh fruit and vegetables.
The union initially called for the changes to be introduced on January 1 but the National Farmers' Federation and Australian Fresh Produce Alliance argued they should not come into effect until July 1.
The industry groups declined to comment on the timeline set out by the Fair Work Commission.
Mixed reaction in growing regions
In the New South Wales Riverina, orange grower Bart Brighenti said the introduction of a floor in the piece rate would mean farmers had to spend more time supervising workers.
"It's not the fact it's a minimum wage, it's actually how we keep track of our workers in the paddock, that's the biggest impact," Mr Brighenti said.
Mr Brighenti and his family employ about 35 fruit pickers during the harvest peak.
"The nature of the business is they're out in the field … it's only partial supervision, we can't supervise everyone all the time, we're talking over multiple farms.
"Once they're on the hourly rate we have to supervise them to make sure they're productive enough."
Mr Brighenti said the changes would also leave him with "no option, but not to employ" grey nomads whom he said had previously been able to work at "their own pace".
At Griffith, not far from Mr Brighenti's farms, Cristobal Hidalgo manages a backpackers hostel.
Mr Hidalgo said the hostel did not send backpackers or seasonal workers out to do piece work because they were not paid enough.
"I met some people who work doing orange picking and they make per day $30 or even less, that's why as a hostel we decided not to provide any type of piece-rate job to anyone because personally I don't think it's fair.
"I'm not saying they have to pay a $1,000 or more per week, I'm just trying to say that it's not fair."
