A new report from the McKell Institute has called for the Federal Government to expedite protections for labour hire workers in Australia’s horticulture sector.
The McKell Institute report has been commissioned by Woolworths and the Retail Supply Chain Alliance - an alliance of trade unions in the fresh food supply chain. Together the three organisations are advocating for national regulations to improve oversight of labour hire agencies in the horticulture sector.
Key recommendations:
-
A dedicated enforcement team for horticulture within the National Labour Hire Regulator
-
More sustainable funding for rural and regional enforcement, including workplace inspections
-
A national database to prevent rogue labour hire operators from re-entering the market
-
Regular audits and public reporting to improve transparency
The report, Licencing Labour Hire, highlights the regulatory gaps in the labour hire industry, with a focus on regional and seasonal farm work where workers reported wage theft by labour hire providers, poor working conditions and mistreatment.
It found 50% of labour hire workers in the sector earn less than $50,000 annually, with many being seasonal migrant workers with restrictive visa conditions.
“Low quality regulatory frameworks in the labour hire industry have seen rogue operators take advantage of loopholes, exploit workers and undermine the industry,” Edward Cavanough, CEO of the McKell Institute, said.
“We have even seen cases of ‘regulatory shopping’ where unscrupulous companies relocate to states with weaker licensing laws, such as Tasmania or New South Wales. We need better protections and stronger enforcement mechanisms in place so these workers can go to work every day knowing they will be safe.
“While most providers operate ethically, a small but harmful group continues to exploit vulnerable workers. The establishment of a regulator is long overdue when it comes to protecting workers and ensuring ethical practices are enforced.
“Farmers and horticulture businesses are being let down by a system that allows a handful of bad actors to undermine the sector. This needs to change”.
The McKell Institute, Woolworths and the Retail Supply Chain Alliance support the development of the emerging National Labour Hire Regulator (NLHR) and Licencing Scheme, requiring that labour hire providers meet strict compliance standards.
The report urges the federal government to accelerate the rollout of the NLHR by December 2025 to prevent exploitative practices, and ensure it has the right resourcing to protect horticulture workers.
Quotes attributable to Paul Farrow, Secretary, Australian Workers’ Union:
“Fruit pickers deserve safety and fair wages and right now the system is still failing them.
“Too many dodgy labour hire outfits are able to easily circumvent our standards and rip off PALM workers who should be respected as guests in our country.
“The AWU has battled hard against wage theft and worker mistreatment in farms but we still have a long way to go. We need a strong national regulator with real enforcement power, and we need it now.”
Contact details:
Lauren Ferri: 0422 581 506 // lauren@hortonadvisory.com.au