“The Fair Work Commission has announced a 3 per cent increase in the national minimum wage to $640.90 a week. While a modest increase, it does little to help farmers keep their costs down and their businesses competitive,” Tasmanian Farmers and Graziers Association chief executive Jan Davis said today.
Though the national minimum wage applies to employees who aren’t covered by an award or agreement, it will flow through to all modern awards from July 1.
The TFGA had backed the National Farmers’ Federation submission on the minimum wage, in which it asked the commission to take into account specific concerns affecting agriculture, including the severe drought in some parts of the country and adverse market conditions.
“With labour costs making up as much as 50% of operating costs, wage rises are a prime consideration for farm businesses,” Ms Davis said. “The recent increase in the superannuation guarantee contribution has already added to costs.”
“In most sectors, wage increases are linked with productivity gains or increasing overall profitability. That’s not the case in agriculture – and farmers can’t simply lift their prices to cover continually rising costs,” she noted. “Without rises in prices, more Australian farmers will be priced out of the industry.”
“To take some pressure off the sector, the Fair Work Commission needs to review the regulations that lock farmers into complying with unsustainable 9-5 Monday-Friday award conditions,” Ms Davis added.
TFGA chief executive Jan Davis
