Time for a minimum earning guarantee for Pacific workers

Devpolicy researcher EVIE SHARMAN discusses the proposal for minimum earnings guarantee for Pacific Australia Labour Mobility (Palm) scheme workers

The Australian Workers’ Union (AWU)’s most recent campaign calls for Pacific Australia Labour Mobility (Palm) scheme workers to receive a minimum payment after deductions of AU$250 (about K616) per week.
The AWU proposes that any outstanding deductions should be carried forward until workers are earning enough to cover them.
This is in the wake of several reports of workers receiving low income after deductions, with not much left to support themselves or their families at the end of low weeks.
MADEC, one of the largest employers of Pacific seasonal workers, has lifted its minimum weekly payment to AU$200 (about K493) per week after being implicated in the select committee on job security.
The main representative body for Palm scheme employers, the association of Approved Employers in Australia (AEA), also supports a post-deduction wage safety net.
In its recent letter to the incoming government, the AEA highlighted that this measure would “ensure that per pay period, workers are not left with an insufficient income after deduction”.
Employer support is important, as they would be the ones to pay more upfront and carry the deductions forward, as a commitment to their workers’ welfare.
On the wages front, it seems relatively straightforward too.
The hourly rate for casual fruit and vegetable pickers is now AU$26.73 (about K66) per hour, and anyone working on piece rates must earn at least 15 per cent more than this minimum threshold.
Pacific seasonal workers have a minimum average of 30 hours of work per week for the duration of their contract, and on this new hourly rate will earn on average AU$1,363 (about K3,361) per fortnight post-tax.
A weekly guarantee of AU$250 would be only 37 per cent of a worker’s expected post-tax earnings.
For Pacific Labour Scheme workers on full-time contracts, their wages don’t have the same level of seasonal variability, and it should be less of an issue.
The minimum hourly full-time meat award rate of AU$21.36 (about K53) leaves Pacific meat workers with an average post-tax earning before deductions of AU$1,089 (about K2,685) a fortnight, closer to a 46 per cent guarantee.
The major group of approved employers and one of the major unions representing seasonal workers are in agreement on
this issue, and it should be relatively straightforward to implement.
The next question is how much this mandated weekly safety net payment should be.
The union says AU$250.
Talking to a few approved employers, you get the s ense that they are thinking somewhere around the AU$150-200 (about K370- K493) mark.
Somewhere in the ballpark of AU$200 therefore, seems reasonable and uncontentious for both short-term and long-term workers in the scheme.
This would provide both workers and their families with greater week-to-week certainty.
Anecdotally, many employers do provide a minimum already, but there would be a benefit to making this minimum compulsory.
It would reassure workers, other employers and, importantly, the public, that workers are being treated fairly and have a safety net to protect them.
This minimum amount will hopefully be more symbolic than necessary, especially now that the normal flows of seasonal labour are starting to resume.
On very low weeks, or when the weather is terrible, or when disaster strikes, having a minimum payment would serve as the uniform safety net that all employers must meet.
With the high level of media coverage this specific topic has received, and the support for this idea from both unions and employers, this could be a great addition to Labor’s policies for improving Palm, and seems like an easy win.
With the deed of agreement yet to be finalised, a safety net should be included to guarantee a post-deduction minimum earning for Pacific workers.

Disclosure: This research was supported by the Pacific Research Programme, with funding from the department of foreign affairs and trade.
The views represent those of the author only.

This article appeared first on Devpolicy Blog (devpolicy.org), from the Development Policy Centre at The Australian National University.

Evie Sharman is a research officer at the Development Policy Centre, working in the Pacific Labour Mobility team.