Kiwifruit picking pay clash as Seeka, union prepare for 2023 harvest season
Friday, 23 September 2022
Australasia’s largest kiwifruit producer has moved to quell fears its minimum wage of $24 per hour will drop ahead of the 2023 main season.
First Union New Zealand spoke out against orchard-to-market specialists Seeka after a turbulent 2022 season beset by labour issues and allegations of pay irregularities.
Union officials alleged numerous members ended the season out of pocket despite a collective agreement with Seeka that workers would receive no less than $24 an hour.
But Seeka says many pickers earned much more and the company deserved some slack when rolling out the new agreement to several thousand workers employed at peak periods.
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Despite the agreed fee of $22.75 plus an hourly labour shortage allowance of $1.25, the union claimed the employees in question included orchard workers as well as packhouse staff.
Some orchard workers on pay-per-piece terms had earned less than the stated hourly rate, First Union’s strategic project coordinator Anita Rosentreter said, meaning Seeka had to “top up” their wages.
“We bargained the $24 agreement, and that was generally what was being paid in packhouses, but with the understanding that orchard workers would get more,” said Rosentreter.
“What we actually found was that some orchard workers on piece rates had earned less than that.
“There's all these promises that if you work really hard and pick really fast you can earn loads of money, but in reality we found some people who ended up earning much less than the company promised them.
“Packhouse jobs, generally speaking, are thought to be the lower-paid jobs in the industry, but in this case it was the opposite.”
In response, Seeka chief executive Michael Franks said the company deserved “a little bit of slack” after the rate was set, and claimed a number of workers earned “a lot more” than $24 an hour via piece rate deals.
'Seeka set the $24 per hour pay for all staff in reflection of a tight labour market and heading into a tough harvest season,” said Franks. “We typically set the rate just before the kiwifruit season.
“It took us a little while to implement it uniformly company-wide so, rather than being required to top up, which puts an unfair slant on it, it simply took us a few weeks to make sure we had it in place across the company.
“We are paying more than 4000 people per week in the height of the season, so we might deserve a little bit of slack in getting it done. And I would say that a number of people who are on the $24 rate actually earned a lot more through the piece rate deals that are in place.”
First Union admitted their primary concern ahead of the 2023 season surrounded the fixed hourly rate, and suggested the reopening of New Zealand’s borders would result in the labour shortage allowance of $1.25 being scrapped.
“We’re worried that workers might be looking at lower wages next year,” said Rosentreter. “If that feels unfounded, then they wouldn't have any issue with just locking it into the agreement as a $24 hourly rate.
“We've had extensive discussions with Seeka and so far they've refused to commit anything in writing that would eliminate that fear for us.”
Franks responded by saying labour market issues could be set to continue into 2023 - an eventuality that he claimed would see the $24 agreement remain in place.
“While we have yet to set the rate for 2023, I would point out that the tight labour market remains and that being the case, it is unlikely that the rate will reduce.
“At one stage Seeka had a shortage of 1100 people through illness and general shortage of labour. We are still short now. Recognised Seasonal Employer (RSE) workers and backpackers are unlikely to change that dynamic.”
Of the 2022 season, Franks said he had encountered no feedback from employees about the $24 rate.
“It’s been a tough year for the company and our people, and all have worked hard,” he said. “We have put in place a whole suite of other things to create a company where people enjoy working safely and the feedback is actually quite positive.”
Rosentreter claimed that instead of negotiating a static rate, the union would usually expect wages to increase before each season.
“That’s what normally happens,” she said, “and that’s what workers will be expecting of them.”
Rosentreter pointed to what she called “extensive lobbying” to the Government from kiwifruit firms, for exemptions that included the RSE scheme.
“Part of what they were promising in exchange for that was the intention to address the systemic issues within the industry around workers’ wages and conditions,” she said. “I haven't seen enough to be convinced that that's something they're actually willing to do.”
Green Party list MP Jan Logie, whose portfolio includes workplace relations and safety, said committing to the $24 hourly rate and consideration of a higher offer would have a positive effect.
“Doing both would help retain staff in the short and long term,” she said. “At the very least a living wage should be paid, but a fair hourly rate will ideally be worked out between workers, through their union, and employers.”
“All working people deserve decent pay and conditions, and this is often back-breaking, challenging work. The industry has a duty - a legal and a moral one - to treat their workers fairly.”
Logie said members of her party had spoken to pickers who claimed their pay structures were unfair and working conditions were poor.
“Companies should address the failings in their industries, not only because they had concessions from the Government, but also because fruit pickers work hard and have a right to fair compensation.”
When asked about those concessions, a government spokesperson confirmed a border exemption was established to allow up to 2000 RSE workers to arrive in New Zealand.
“This came with several conditions that employers needed to agree to, including an agreement from employers to pay workers at least $22.10 an hour, to meet costs of their RSE workers’ managed isolation, to pay RSE workers the equivalent of 30 hours work a week while in managed isolation and while in their employment,” they said.
“The hourly rate, and 30 hours per week requirements remain conditions of the RSE scheme, and all employers must meet these requirements in order to participate.”