There will be many farmer also interested in the outcome of this investigation, as many use working holiday visa employees to do picking for them. As the earned money is based on the amount picked or rate of work done, this has potential enormous ramifications for the farming sector and also potentially prices all consumer pay for intensively produced fruit and vegetables.
If only all were honest employers and it was so simple and straight forward. Farmers seem not to be alone in that regard. I am not expert to know a fair wage for a fair pick, but there is also sometimes a component of how much is deducted for room and board, be it more than top dollar or more for what is delivered, or whether what is delivered is at cost or fair.
If American farmers paid their itinerant workers fair wages under fair conditions, there have been numerous papers showing Americansā food costs would rise significantly. This there is a block of voters who have no interest in the problem.
The real problem is not farmer nor wages, it is the citizenry who prize cheap food above treating the itinerant workers fairly. If the foods were put through the supply chain where everyone got fair wages and fair profits prices would go up; therein lies a conflict of interest.
Somewhat familiar?
2 Likes
Agreement, but not quite in full.
The cost at the farm gate is but a fraction of the retail price, be it milk, or strawberries or silver beet.
A fair price for labour might add 20c per kilo to a farm gate price for the product. Somehow that gets turned into 49c extra at retail. The justification being fixed percentage markups and up rounding of pricing.
Is the pricing of fresh farm products a retail marketing game?
The farm gate or market price of produce is a bulk rate. Itās either direct agreed with a farmer or bid at the market. It converts to odd fractions of a cent per punnet for strawberries or per kilo of potatoes etc. Oranges and apples are packed in boxes or bulk crates. Potatoes in bags or bulk loose.
Tomatoes might sell for between $10 and $18 per 10kg box on the day. A retailer might purchase stock from several lots, some at $16, others at $15, a few at $14. At the end of the early morning there is an an average cost per kilo. Itās always odd. It could be $15.655 per 10kg box/tray. With a simple 3 timeās mark up retail would be $4.69 per kg.
When did any of us see a product shelf priced at anything other than half dollar amounts. Itās likely to go into the bin at $4.99/kg, less likely $4.49.
An extra 20c farm labour cost might not seem that great compared to $4.69 in the example. When using a fixed markup that 20c becomes 60c and the tomatoes will retail for $5.49 per kg.
A retail markup based on a fixed percentage of base cost is a very common strategy for goods of most types.
2 Likes
And that 60c markup because of farm labour doesnāt flow back to the labourer, nor to the farm gate. It is just pure profit to those who mark it upā¦no real cost to them but certainly an easy earner. Perhaps the labourers should be able to get hold of that markup (after Tax of course) as part of their remuneration, ok Iām just dreaming 
3 Likes
As variables go the intermediaries are going to add their markups be they 5 or 50 or more percent at each step, so I consider markups immoveable objects for the discussion, even though that should not be the case. Thus if one ups wages at producers by $0.50 per hour, as it flows through it grows, say another $0.50~1.00 per kilo for us as the system operates. (I avoided the word āworksā). More per kilo will make a difference to a grocery shop when almost everything in the trolley gets affected. Those on lower incomes feel it more since most countries are weighted toward lower median incomes where every $1 matters to the consumer (the 1% have 90% issue).
Producers are the ones that appear to be squeezed hardest. Stating the obvious, we already have many imported goods coming from half way around the world that sell for much less than locally grown. Do economies of scale actually outweigh costs of shipping by that amount? If not one can reasonably guess the āwhysā.
It is endemic in the system.
2 Likes
An article regarding a farmer doing the right thing .
2 Likes
Sort of, as anyone who stays and picks blue berries for a full harvest period deserves a bonus. Or Black berries and finger limes possibly a bonus just for turning up and giving it a go?
Anyone wondering about what is really going on.
Caution, the website might challenge.
The content linked will change over time. We can all draw our own conclusions!
3 Likes
Like this one.
Strawberry Picking,packing
$125 per week
Temporary
Smith farm
Brisbane
a month ago
Go to backpackerjobboard.com.au
Gā day mates
We are a strawberry farm called Smith Farm located in Caboolture looking for workers to working with us.
Right now we have started picking and packing. we have been working 4~6days a week. We need a lot of workers to pick and pack strawberries. It is piece rate for picking and packing. The rate differs everyweek. [About our Farm]
Formal Employment Contract
We have a ABN regarding second and third visa
We have Contraxtor license
1263 form prepared [Farm connected Sharehouse]
2 People room, 3people room(Master room)
It is $125 per week
$125 bond(Give us a notice 2weeks before to get the bond back)
We provide Toilet paper, Dish washing Detergent, Laundry Detergent, Wifi and etc
If you donāt have a car we will help you with shopping. [Pickup]
It is $5 for pickup everyday we go to work(If you have a car we will match people for you to earn pickup fee) If you have any questions. Could you massage to me? If you massage to me I will do my best to answer.
HAVE A GOOD!!!
PhoneView phone number on backpackerjobboard.com.au
Go to backpackerjobboard.com.au
$125 a week. Toilet paper supplied. Very genourous.
2 Likes
Notice they charge $5 a day pickup fee from their accom to the picking area as wellā¦got to cover that cost out of the workers who pick the product that earns them moneyā¦
They even answer Massagesā¦Iām very impressed. I always enjoy a good exclamation as well so I will try to have a good 2 or 3 of themā¦
4 Likes
A serious bit of satire on the topicā¦
2 Likes
Pretty much says it all.
1 Like
Another expose of university wages theft.
1 Like
The story line is a sad tale for those now taking action.
There is more that could have been said about the staff who worked as independent contractors for up to 18 years. They are now pursuing the University over superannuation, while there is a Union comment on sick leave & cover, annual leave and Workers Compensation Cover.
Per the ABC.
All employees involved in the lawsuit were hired as independent contractors, an employment arrangement where employees are engaged as contractors and treated as an independent business.
As independent contractors for tax purposes they would have been claiming deductions and expenses average employees cannot. Independent contractors are also able to contribute to their own super and had in my experience better access and deductibility options compared to PAYE employees.
There is nothing preventing an independent contractor as a sole trader or registered business covering all of their needs through super, insurances, work cover (in my experience in Qld) etc. The individuals may have taken on other work and income streams. Something experienced musicians might do on a regular basis with private teaching, gigs etc. The ATO provides and will apply if necessary a set of tests for tax purposes for those self employed to determine if they are genuinely self employed. GST is applicable.
A sad part in all this is that those working as independent contractors may have accepted contracts that paid too little to meet all their needs. Why and how those choices were made is not covered by the ABC. They may also be at risk with the ATO, as well as their accountants. There are significant differences in how tax is assessed for employees and for contractors.
1 Like
A class action has been launched in WA over wages stolen from Indienous persons.
2 Likes
Itās a much broader issue than just one state or territory. All but Tassie and the ACT get a mention. The history dates back to the actions of the British Govt House of Commons and 1838!
The issue of stolen wages has already been the subject of a $190M settlement with the State of Qld.
What was originally recommended In 1838,
The report recommended that Protectors of Aborigines should be engaged. They would be required to learn the Aboriginal language and their duties would be to watch over the rights of Indigenous Australians (mostly Aboriginal, but also Torres Strait Islander people), guard against encroachment on their property and to protect them from acts of cruelty, oppression and injustice.
and what transpired seem worlds apart.
These arrangements in various altered versions remained in place up until the last in WA 1972.
1 Like
Just how bad was wage theft from 7-eleven employees.
Shared between 4,043 employees. An an average of more than $40,000 each!
2 Likes
So where are the jail terms for those responsible? Where is the justice for those who were failed by this theft and fraud?
2 Likes
To the extent that the laws put in place by our governments allow?
Itās hard to jail a virtual person, companies being what they are.
In one instance relating to 7-eleven.
https://www.kwm.com/en/au/knowledge/insights/severe-penalties-for-underpayment-of-wages-20180614
And another. Severe penalties?
There are more. So far Iāve not turned up a single list of all the directors and their companies involved across all the 7-eleven franchisees. Employers to avoid?
2 Likes
It is an interesting fact of our law that a director can be held personally liable for a company trading while knowingly insolvent, but they have no responsibility for much more than figuring out how to reward their chosen CEOs and assure bonuses are paid to the max extent possible.
3 Likes
We need laws that really hold CEOs and Company Directors personally responsible for these failures. Iām sure once such a law was active that many of these people would actually take an active role in ensuring the business was compliant, reason being that to fail to act would mean incarceration and or fines/penalties that affected them personally.
3 Likes
