He explains that legal workers within the industry are paid under the Horticulture Industry Award (2010). This ensures payment of a salary not less than $606.40 per week or $15.95 per hour.
The reports suggesting illegal activity state that workers are being paid considerably less than this. John explains how this may come about.
Within the industry much of the work carried out at harvesting time is done via piecework. The Award legislation requires that piece workers receive an additional 14% loading to their salary payment.
"The employer must calculate the piecework rate by adding the loading to the weekly wage and dividing it by the number of piecework that can be done in 38 hours."
Growers are allowed to individually make such a calculation themselves, but, in the absence of productivity data, must use industry association calculations to support their payments.
Contractors will approach growers to offer them discounts on the published piecework rates. The contractors are using permanent employees, paid on a permanent wage rate. The contractors make their money by keeping the difference between the minimum allowed payment and the piecework rate. John explains that this process is perfectly legal.
"The employees have permanent employment with the one employer - the contractor in this case - rather than having temporary work with multiple employers."
The system is, however, open to abuse, as John explains.
"Should an unscrupulous contractor use illegal workers or legal workers who are at a language disadvantage, for example. Workers can also be charged exaggerated finding fees, transport and administration costs."
John gives an example, which he stresses is hypothetical and not based on real events.
| Piecework rate | $842.90 = 24 bins picked per week @ $35 per bin |
| Contractor quote | $30 per bin |
| Contractor income | $720 |
| Contractor Staff Pay | $606.40 per week (award permanent wage for 38 hours) |
| Contractor Margin | $113.16 per week |
"if the contractor then charges fees, transport, accommodation etc., there could be significant deductions. For the sake of calculation let us say $200 per week. Then in this example the contractor would have an income of $313 per worker, per week. With 40 workers this is equal to a weekly income of $12,500 or $150,000 per annum, whilst the worker have an effective pay of just $10.69 per hour."
