Farmers & CTU debate pay

03/09/2008

Farmers and growers need long term strategies  for developing their own workforces to counter labour shortages, Councils of Trade Unions president Helen Kelly says.

Her comments follow reports that short-staffed dairy farmers were being exploited by southern farm workers demanding “ridiculous” wages.

Peter Macfarlane, director of dairy farm workers recruitment company Greener Horizons Workforce, said some southern farm workers with little experience were demanding up to $50,000 a year plus free accommodation from farmers struggling to attract staff.

This was about $15,000 a year more than would normally be paid, Mr Macfarlane told the Southland Times.

The farm workers, who industry sources said worked between 50 and 60 hours a week on average over a year, were attempting to cash in on the booming dairy industry and record dairy payouts.

I’m not sure that 50 and 60 hours average over a year is correct. Dairy staff work longer hours during the milking season but have much shorter days over winter and farms use relief milkers to take the pressure off fulltime workers.

“There are people out there exploiting the situation because of the staff shortage,” Mr Macfarlane said.

“They are asking to get paid way more than their skills and ability deserve.”

But Ms Kelly said the admission by Southland dairy farmers that they were paying New Zealanders $35,000 per year for 50 to 60 hour weeks was shameful, particularly at a time when they were pressuring the Government to relax immigration requirements.

I’ve already disputed the hours and she’s not taking into account the value of the accommodation which comes on top of wages and is worth at least another $10,000 a year.

Yesterday wine growers were also complaining about the cost of labour while harvesting record crops, she said.

“The dairy farmers are openly admitting that New Zealand workers are available but that they turn them away because they are expecting $50,000 per year – hardly great riches for the long hours and hard work expected of them.

“We are also concerned to hear that it is apparently easy for farmers to replace these workers by employing foreign workers simply to reduce wages.

“Our immigration policies exist to fill genuine skills shortages, not to replace New Zealanders seeking work and not to cut wages and conditions.”

There is a genuine skills shortage on dairy farms – unemployment is very low and it’s extremely difficult to find New Zealanders with the desire and ability to milk cows.

Ms Kelly said New Zealanders were paying huge prices for dairy products and farmers were making more money than ever.

“It is an irony that farmers are happy to accept market demand as an excuse for higher and higher costs to consumers but don’t accept it when it has the same impact on labour costs.”

Ms Kelly said it was time some of this money was committed to building a sustainable industry, including decent wages, training, prospects and conditions of work.

The market has pushed up the cost of all farm inputs including labour. We don’t object to paying people a fair wage. The objection is to paying people with no skills or experience far more then they’re worth – where else could someone without qualifications or experience start on $35,000 plus a house? We’re also mindful that the costs won’t drop when returns inevitably do.

There is good training for farm workers from AG ITO, to universities.  Those with ability and application have good prospects and, while their will always be bad exceptions, there isn’t generally a problem with conditions.

The problem is supply and expectations – too few people willing and able to do the job for a fair wage.


%d bloggers like this: