Obligations of wine industry employers
Pruning season is a time of peak seasonal labour requirement for the wine industry, and is also a time when many producers utilise contractors, labour hire firms and a workforce from overseas.
In the last 12 months there has been significant media interest in the employment practices of the agrifood sector, and the WA Wine industry were the target of talkback radio calls only last month.
Whilst there is no suggestion that the WA wine industry in doing anything wrong, there is a clear need for industry to, not only understand employer obligations, but to be able to show compliance with National Employment Standards.
Why is compliance important? Because failing to comply with the relevant Industrial Relations system and the Fair Work act can result in:
- Underpayment claims from employees, including backpacker workers, and contractor staff if they have not received the minimum pay entitlements.
- Pecuniary penalties of up to $51,000 for body corporates and $10,200 for individuals.
- The reputational damage that comes from these types of claims.
The Fair Work Ombudsman (FWO) has been actively running a “Harvest Trail” campaign since 2013 auditing and educating horticultural and viticultural businesses about their obligations around the country. So far they have received complaints from workers on being short-changed on transport and accommodation costs, substandard accommodation and rates of pay.
Wine businesses can also be subjected to accessorial liability, meaning you may be liable for actions you are not involved in, but are aware of, such as underpayment of contractors or Labour Hire workers.
The good news for pruning season is that piece workers are allowed under the wine industry award. The bad news is that piece work rates is the most common issue highlighted by the FWO in the harvest campaign. Employers have a clear obligation to ensure that an average competent employee working at an average speed can earn at least 20% more than the casual hourly rate under the award.
Again there is no suggestion that the Wine industry is currently doing anything wrong but it is critical that the piece work arrangement is set out in writing. No signed paperwork means a worker is not considered a pieceworker and is entitled to the minimum hourly/weekly rate as prescribed by the award.
This could be very costly for the employer. In view of recent media interest, we expect more complaints to the FWO, particularly from Working Holiday makers. There are also further obligations on employers to ensure that workers with limited English understand the arrangement. If you are using a labour hire company you should also have a clear understanding of the employment arrangements of their staff so you cannot be subjected to accessorial liability claims.
If you need further advice, the Chamber of Commerce and Industry (CCI) have the largest team of employee relations specialists in WA and can provide advice on developing HR policies that meet current legislative requirements and assist employers resolve employee disputes in-house.
For further information and assistance contact Jackie Jarvis, CCI Consultant – Agrifood Labour & Skills on +61 (0)428 645 812.
