The seasonal summerfruit sector in New Zealand has raised concerns about proposed changes to worker leave payments, stating the measures do not reflect the structure of seasonal employment and may affect orchard operations.
The Employment Leave Bill is currently under review by a Parliamentary Select Committee and is expected to be implemented by November. The proposal aims to revise the calculation of holiday and sick leave payments.
Dean Smith, CEO of Summerfruit NZ, said the proposed increase in leave compensation from 8 per cent to 12.5 per cent would raise labour costs. The additional 4.5 per cent is intended to cover sick leave for casual employees.
"This has a particular impact upon our cherry growers, who face the most condensed harvest period of any, with a six-week period. Forty percent of their operating costs are labour, mainly falling in that period."
Casual workers currently receive 8 per cent holiday pay, while sick leave is generally available after six months of employment. Under the proposal, sick leave would be included in wage payments.
"When they did due diligence on the Bill, the government assessed it as not having a material impact upon wage costs. But casual employment is quite different. Applying the same entitlement in a 'one size fits all' approach designed for regular employment creates real costs and challenges to employers."
Horticulture New Zealand estimates the additional 4.5 per cent leave compensation would add about US$25 per week per casual employee. For a post-harvest operation employing 600 casual workers over six weeks, this would equate to approximately US$90,000 in additional wages.
Smith said, "But it should not be paid ahead on a casual contract position. This is really a pay rise by stealth."
The sector also raised concerns about the Otherwise Working Day test, which applies a 50 per cent threshold to determine eligibility for paid leave. If the threshold is met, employees are entitled to a paid day off or time and a half plus an alternative day off.
"But it can be satisfied based on a very small number of instances. It relies heavily on a percentage rather than a clearly established and reliable pattern of work."
"For example, a worker may have only had two opportunities to work on a Monday and worked one of those, meeting the 50% threshold, even though this does not represent a genuine or predictable pattern of work."
Horticulture New Zealand has submitted its concerns to the Select Committee reviewing the Bill.
Source: Farmers Weekly
