THE Australian horticulture industry has expressed outrage that the federal Minister for Workplace Relations, Julia Gillard, has not taken action to recommend amendments to the new Horticulture Industry Award.
Chair of Horticulture Australia Council, Stuart Swaddling, describes the award, in its present form, as "the single biggest calamity that the horticulture industry nationally has faced in its history".
"Australian fruit and vegetable farming businesses are facing increased labour costs of 25 per cent or more," Mr Swaddling says.
"Many enterprises will go to the wall."
The new award is due begin on January 1.
It stipulates a limited span of working hours at ordinary rates, affecting orchard work and work hours in the packing sheds, with a huge surge in costs arising from changes increasing penalty rates.
In the packing sheds, for instance, the industry faces double time, on Sundays.
Mr Swaddling says the horticulture industry deserves special consideration because fruit and vegetables need to be picked and packed seven days a week when ripe.
"This (new award) makes it economically impossible for crops to be harvested at their peak as many growers currently use piece workers, who get paid according to the amount they pick," he says.
"This is a very equitable arrangement and popular with both growers and workers.
"The new award is structured so that this is no longer a viable option.
"The result will be reduced hours for regional workers at the very least - and a significant loss of regional jobs if businesses go to the wall."
Workers such as grey nomads and professional pickers will be especially affected.
"No other business sector in Australia could be expected to wear such major cost increases as these without dire consequences," Mr Swaddling says.
"Moreover, our industry has a limited capacity to pass these increases on."
This issue, he says, will impact on:
• The viability of 30,000 businesses nationally.
• Australian consumers’ access to quality locally-grown fruit and vegetables.
He says Horticulture Australia met with Ms Gillard’s advisers and officers from the department on May 26 to highlight that the Australian Industrial Relations Commission had erred in the setting of provisions under the award and that the government needed to recommend changes to ensure the economic sustainability of the industry.
"We were promised a response within four weeks, and yet more than 12 weeks later we are still waiting for further action," Mr Swaddling says.
"This is happening at a time when government should be preserving jobs as its first priority, particularly outside of metropolitan areas."
News reports this morning suggest Horticulture Australia's blast has made an impact in Canberra, with The Australian reporting that Julia Gillard "is preparing to intervene".
There is a precedent. In an earlier, similar case, she intervened in proposed changes to the restaurant industry awards.
That industry also faced a huge surge in costs arising from changes to working hours, with increased penalty rates and other restrictions.
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