The Fair Work Commission has for some time been looking at the minimum pay rates under various awards, including the Pastoral Award and the Horticulture Award.

The Commission is of the view that an employee should not be stuck at a pay rate that is less than the C13 Level that applies under the Manufacturing and Associated Industries and Occupations Award 2020, currently $24.10 per hour.

Primary Employers Tasmania has been involved in a taskforce with the National Farmers Federation to prepare submissions to the Commission arguing that at least 12 months is appropriate under the Awards for an employee to be involved in the different seasonal variations and tasks that occur in agriculture. However, it is unlikely that the Commission will change their opinion on the timeframes.

What this means is that under the Pastoral Award an employee at FLH Level 1 (currently $23.46 per hour) will only stay at that level for 6 months then move to either Level 2 (currently $24.10 per hour) or Level 3 (currently $24.44 per hour) depending on the work they do.

In the Horticulture Award the Level 1 employee will only stay at that level for 3 months (currently $23.46 per hour) before moving to Level 2 (currently $24.10 per hour).

Coupled with the higher superannuation payable, and other on-costs such as the flow on for workers compensation premiums, this increase in labour costs will impact employers and subsequently consumers.

We are still awaiting confirmation as to when this change will occur and will provide full details to members as soon as possible.