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Unions demand Royal Commission into systemic exploitation on Australian farms

THE Retail Supply Chain Alliance unions -- the AWU, TWU and SDA -- are demanding a Royal Commission into the exploitation, wage theft and abuse "that is rife across Australian farms" in the wake of another explosive new report into the Australian horticulture sector. 

The McKell Institute report, Blue Harvest, focused on blueberry pickers in the Coffs Harbour region, where thousands of backpackers flocked in search of farm work during coronavirus lockdowns in 2020.

An investigations team traversed the mid North Coast, gathering data and stories from blueberry workers employed during the 2020 picking season. Some were paid as little as $4 a bucket to pick low-quality fruit, while others earned just $3 an hour -- well below the award rate of $24 an hour.[1] Others described common employment arrangements where accomodation, transport, food, and even vital equipment like gloves and berry containers had to be bought directly from farm-owners, reducing daily earnings.

The report also investigates how many workers are recruited by fly-by-night labour hire companies which use Facebook, WeChat and Gumtree to falsely promote fruit-picking as highly paid, fun work.

Retail Supply Chain Alliance spokesperson, AWU national secretary Daniel Walton, said after years of hand wringing, inquiries and reports, it was time for action.

“This shocking new report can be added to the mountain of research indicating that Australian farms have become a hotbed of wage theft, exploitation, and worker abuse. It’s not just Coffs Harbour either – pick a spot on the map, and you will find outrageous exploitation. ” Mr Walton said. 

“It’s about time David Littleproud (National Parfty deputy leader) woke up and took some responsibility for the sector he’s supposed to be in charge of. Under Mr Littleproud’s watch, Australian farms have developed an addiction to illegality and a domestic and international reputation as a place where you are likely to be ripped off or worse," Mr Walton said. "The Minister needs to stand up and announce his support for a Royal Commission urgently. 

“This idea that exploitation is limited to a few bad apples needs to be done away with. This is a sector defined by and built on illegality. By turning a blind eye, the government has created a system of rules and structures that rewards labour abusers and punishes those operators doing the right thing. We’d like to see good farmers stand with us and call out the bad operators, rather than staying silent and let the rip offs continue.

“It doesn’t need to be this way. There are developed nations that produce abundant horticultural exports without relying on labour exploitation to subside their product. Australia needs to decide if we want to take the ethical, high-productivity route or the unethical, labour exploitation route. To inform this decision we need a root and branch examination of the sector and a Royal Commission is the ideal vehicle."

Australian workers becoming victims

Natalie Trigwell, a picker featured in the report, lost her Northern Rivers home in the bushfires and decided to take up farm work in Coffs Harbour region.

“I packed everything in the campervan and headed off berry picking, just out of sheer desperation. I went down there and found that I was earning $15-20 per day,” she said. 

McKell Institute policy director Edward Cavanough said the backpackers he spoke to felt intimidated and “powerless to complain”.

“These foreign workers are often aware they are being exploited, but feel frightened and uncertain about making formal complaints,” Mr Cavanough said. 

“Those who do complain often face hurdles like language barriers and bureaucratic delays which means their allegations are never investigated.”

 

Key findings of the report

  • No worker shortage in Coffs Harbour 

The COVID-19 outbreak actually increased numbers of migrant workers (mainly Working Holiday Makers) to around 2000 in the Coffs area during the study. 

  • The rapid growth of industry has led to bad behaviour

An increase of blueberry farms over five years has resulted in an influx of labour-hirers who exploit anabundance of short-term workers.

  • Backpackers are being set up for exploitation

Tourists on the Working Holiday Maker visa wanting to extend their stay are vulnerable to underpayment, because of rules requiring them to work 88 days in regional Australia.

  • Wage theft is a business model

Some workers have alleged gross underpayments as low as $3 an hour, orchestrated through the systemic abuse of piece-rates.

The McKell report also outlined a range of simple reforms including a crackdown on rogue recruiters, stronger penalties, greater enforcement from workplace investigators, reforms of Australia’s visa schemes and new laws to ensure farmers are required to pay a minimum hourly rate.

The Australian Workers’ Union, the Transport Workers’ Union, and the Shop, Distributive and Allied Employees' Association, jointly funded the investigation through their Retail Supply Chain Alliance. The Alliance believes the issues uncovered in Coffs Harbour is a mere microcosm of the industry where everyday workers harvesting grapes, berries, flowers, vegetables and fruits are systemically underpaid.

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More incentives needed for venture capital and R&D

AUSTRALIA must increase incentives for venture capital as well as research and development to boost the economy and employment, according to Stoic Venture Capital partner Geoff Waring.

Dr Waring said more needed to be done to attract investment in venture capital and research and development.

Dr Waring pointed to recommendations outlined in the Senate Select Committee on Financial Technology and Regulatory Technology’s recent Issues Paper which highlight the critical role research and development, foreign investment and talent play in growing our economy.

“This insightful paper stresses the importance of attracting investment and channelling it towards long-term drivers of our economy including venture capital and research and development,” Dr Waring said.

“Programs such as the Business Innovation and Investment Program and the Global Talent Visa program provide millions of funding that is allocated to venture capital.

“We are in a competitive global market for entrepreneurial talent and capital. Australia must highlight its advantages over competing countries. Accessing global talent and capital will help Australian start-ups to grow into next generation business and employment powerhouses.

“This creates a virtuous circle, where success attracts more talent and capital.”

Dr Waring said the most successful national technology programs combine public research with private industry.

Stoic Venture Capital brings private capital to public research. Stoic is the Co-Investment Fund of Uniseed, a commercialisation fund which focuses on financing early-stage companies that emerge from Uniseed’s member universities.

“We must provide more incentives to attract and retain founders as well as growing technology companies in Australia,” Dr Waring said.

“We encourage the Australian Government to increase the amount required to be allocated to venture capital under the BIIP. Venture capital has higher public returns than other asset classes and is a differentiator compared to other countries’ visa programs without this option.

“This will help Australia develop the economic benefits of next generation innovations from universities, which include high paying jobs and new industries that spring from novel intellectual property.”

About Stoic Venture Capital

Stoic Venture Capital provides financing for early-stage companies, particularly those arising from university research. Stoic is unconditionally registered as an Early Stage Venture Capital Limited Partnership (ESVCLP) and takes a collaborative approach to investing in the highest potential companies. Atlas Advisors Australia AFOF is the major limited partner for the Fund. www.stoicvc.com.au

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Home construction loans smash records in October

THE NUMBER of loans to owner occupiers soared by 11.5 percent during the month of October, smashing the record set just one month earlier in September according to Master Builders Australia CEO Denita Wawn. 

“The remarkable result is shown in the latest ABS lending data and is the latest evidence that the success of HomeBuilder is having a positive impact on the housing sector and the economy,” she said. 

“As yesterday’s GDP figures show, HomeBuilder is already moving the economy forward. Compared with October 2019, the number of loans for new home construction has expended by 82.8 percent.

“Work on all of these new home building projects is keeping the residential building industry very busy in the lead up to Christmas and means that 2021 will get off to a very positive start,” Ms Wawn said. 

“HomeBuilder is not only meeting its KPIs, but exceeding expectations. Last weekend’s announcement around the extension to HomeBuilder represents a very positive development. It means that new home building and major home renovations work can look forward to a steady pipeline into 2022. 

“Home renovations work jumped by 5.1 percent during the September 2020 quarter and contributed to the 3.3 percent expansion in Australia’s economy over the three months,” Ms Wawn said. 

“Residential building activity has a much stronger ability to support overall economic growth than almost any other sector.

“We will see more of the benefits from HomeBuilder coming over the next few months. This is good news for the businesses in the building supply chain and the people they employ. It is good news for the whole economy,” Ms Wawn said.

www.masterbuilders.com.au

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Committee agrees to revised ASIO powers

THE Parliamentary Joint Committee on Intelligence and Security today tabled its advisory report on the Australian Security Intelligence Organisation Amendment Bill 2020.

The Committee recommended that, following implementation of the recommendations in its report, the ASIO Amendment Bill 2020 be passed by Parliament.

The Chair of the Committee, Andrew Hastie MP said, “The Committee made a number of recommendations. In particular and to ensure that the Committee is able to carry out its oversight role appropriately is has recommended that the Bill be amended to allow the Committee to request a written or oral briefing on any matter in relation to any questioning warrant as reported in the Annual Report prepared by the Director-General of ASIO.

“The Committee takes its oversight role extremely seriously. The powers of ASIO, or indeed any security agency, are not set and forget.“ Mr Hastie said.

To provide a greater level of safety for children the Committee recommended that the Bill 2020 should be amended to require the Attorney-General to take into account the best interests of the child as a primary consideration in deciding whether to issue a minor questioning warrant.

In addition, the Committee recommended that:

  • the sunsetting time is reduced from 10 to 5 years;
  • the Committee may review the operation, effectiveness and implications of the questioning powers ahead of that sunset date; and,
  • a legal practitioner able to be appointed as a prescribed authority must have engaged in legal practice for at least 10 years and be a Queen’s Counsel or a Senior Counsel.

Further information on the inquiry can be obtained from the Committee’s website.

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TPB welcomes reform announcement

THE Tax Practitioners Board (TPB) has welcomed the announcement by the Minister for Housing and Assistant Treasurer, Michael Sukkar MP, which recognises the essential service of the TPB to the community, its good work in regulating the tax profession, and seeks to further enhance its independence, effectiveness, and legislative framework.

Following an independent review led by Keith James, the government will begin to implement a range of reforms to the Tax Agent Services Act 2009 (TASA) and the Tax Agent Services Regulations 2009 (TASR) and consult broadly on a range of other measures. 

These reforms will even further enhance the independence of the TPB, reduce red tape for tax practitioners, give even greater community confidence, and set higher standards in the tax profession.

The TPB chair, Ian Klug AM, said, "I am pleased that the announcement by the Assistant Treasurer today recognises the critical role of the TPB. These welcome reforms will strengthen the TPB’s position as an effective, independent regulator and will further protect consumers of tax practitioner services by improving the integrity of the tax practitioner profession.

"These changes also support whole of government approaches, reduce red tape, and increase collaboration with the Australian Taxation Office (ATO) and other regulators."

The reforms bring key changes to enhance the effectiveness of the TPB, including:

  • Greater independence from the ATO, so the TPB has clear accountability and responsibility to the public and government. This will provide confidence that the TPB’s disciplinary actions are imposed by an independent regulator.
  • Reduction in red tape, including streamlining the regulation of tax (financial) advisers and allowing the TPB to accept different types of experience as being relevant to a practitioner’s registration.
  • Ensuring education and experience requirements are set at the right level for tax practitioners to provide community confidence in the tax profession.
  • Bolstering eligibility requirements to ensure that only those individuals and entities that meet high standards of ethical and professional behaviour can obtain tax practitioner registration.
  • Expanding information that currently appears on the TPB’s public register so that consumers of tax services can be even more informed and safeguarded.

Mr Klug said, "As certain reforms are implemented, the TPB will provide further information and guidance regarding these changes to assist tax practitioners and other stakeholders. We will also work with the Treasury and Government to support consultation on the other measures proposed."

Details of the legislative reforms and consultations announced by the Government are available on the Treasury website.

About the Tax Practitioners Board

The Tax Practitioners Board regulates tax practitioners in order to protect consumers. The TPB aims to assure the community that tax practitioners meet appropriate standards of professional and ethical conduct. Twitter @TPB_gov_auFacebook and LinkedIn.

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