Growers ring warning bell on award changes
June 05, 2009
Peak body Growcom is urging Queensland fruit and vegetable growers to contact their local, state and federal members to inform them of the serious consequences of the new horticulture award at an individual farm level.
Chief Advocate Mark Panitz says it is time for government to really understand the impact of the proposed new award on jobs and farm viability at a grassroots level. The new award is proposed under the award modernisation process being undertaken by the Australian Industrial Relations Commission (AIRC).
"We have surveyed our members and the effect will be an estimated increase in costs of up to 40 percent with some growers saying they will be forced out of business," he says.
"How many businesses in these tough economic times can withstand that sort of cost increase?
"There are more than 25,000 people currently employed by the horticulture industry and many of these jobs will be threatened as growers will have to cut staff or in the worst case, go out of business.
"Growcom has lobbied extensively and met with key departments and ministers at both levels of government about the effect on the industry as a whole, but it is now up to growers to go and tell their individual stories to their elected members so they can hear first-hand what the impact on local businesses will be.
Panitz says the impact of the new award will vary from state to state but the greatest impact is likely to be felt in Queensland because the new award will take away some of the flexibility currently existing under the old award.
"Of particular concern is the imposition of a 200 percent penalty rate for work conducted on a Sunday – a provision which has never previously applied to the industry in Queensland and one which we know will cause serious problems for growers who must harvest when a fruit or vegetable reaches its peak, not according to an industrial relations schedule of working hours," he says.
"Similarly, a Monday-Friday 6 am to 6 pm span of hours for packing house employees is unworkable. Many of these operations are, by necessity, evening and weekend operations. The cost burden of employing staff on rates of 150 and 200 percent outside of this span of hours will have a significant impact on already narrow margins. This result would likely be more work for growers and their families and fewer paid employees."
Panitz says that there is also concern relating to the possibility of Queensland ceding its industrial relations powers to the Commonwealth, as nearly 50 percent of growers are covered by the state award.
"If the state does decide to throw its lot in with the Australian government, small mum and Dad businesses will have to bear these same cost impositions as larger businesses and potentially have less capacity to absorb the costs. This issue needs to be properly considered by the state government," he says.
"It is vital that all growers get on board with this campaign and ensure the consequences of the new award are well and truly understood by their elected members."