Fruit and veg growers call for licensing of labour contractors to crack down on backpacker exploitation


16 Jun 2016
ABC Rural


Bundaberg's horticulture industry has called on the Queensland Government to require labour hire contractors to have a licence before they can employ backpackers.   

The industry also used hearing of the Finance and Administration Committee's inquiry into practices in the labour hire industry to call for the reinstatement of a Fair Work office in the city.



Bundaberg Fruit and Vegetable Growers managing director Bree Grima said she hoped the committee had a good understanding of the complexity of the issues.

"At least 99 per cent of the growers are doing the right thing. It's simply [some of] the businesses that are supplying the labour that are doing the wrong thing," she said.   

"By banding together through the Queensland Horticulture Council we do have a greater voice, and we are hoping that by providing the submissions through lots of different representative organisations, that they hear and understand our frustrations."



Instead, a video conference was held at the local TAFE to hear from growers, former contractors and backpacker hostels on issues such as piece rates, building standards, the minimum wage, illegal accommodation, contract arrangements, and the role of the big supermarkets.
Cost of labour puts industry in difficult position

Speaking passionately about the challenges his family farm faced, Gino Marcon pleaded with the committee to understand the difficult position the industry was in.

"If you ask me the question, 'Do we [the industry] treat workers as slave-labour?' I'd have to say yes," he said.   

"Do we [the industry] abuse them? I'd say yes, we do, simply because the only cost we control is the cost of labour.   

"If we were to pay our workers what they're worth, say $30 an hour, you'd be paying $10 a kilo for your tomatoes and you aren't going to do that."    

Mr Marcon said in New Zealand, the cost of labour was on average $12-14 an hour less than in Australia, making it difficult for producers to compete, which was why using labour hire contractors was attractive.

"So by using a contractor we say to the contractor, we will pay you so much per kilo," he said.   

"If we have to pay any more than that we will plough our crops in."
Group accommodation largely unregulated.

Hostel operators Christine and Brian Sparkes told the committee the prevalence of dodgy contractors had improved since they took over East Bundy Backpackers four years ago, but the problem had moved on to illegal sharehouses, and group accommodation was largely going unregulated.   

"We've had people that have said they're stuck being in a sharehouse accommodation trying to get out, but they can't because they don't have the money to do that," Mrs Sparkes said.

    Whilst they're on our farms, we'll make sure as a duty of care that they are treated lawfully. However, I don't feel that once they go back to their hostel that it should be the responsibility of the farmer."
    Sue Zaina, Snapfresh Australia

"I think most of the hostels in Bundaberg tend to be much more regulated ... the majority are all trying to do the right thing and we're so visible we have to.

'We're just an easy target if you look at us."

Former contractor and now hostel operator James Lee recruits visitors overseas to work on farms in the region.

He said he made the switch because keeping up with the regulations was pricing him out of the market — the dodgy operators who did not have the same compliance expenses could simply undercut him.   

"As long as they follow the regulations, then it becomes very, very hard because there are a lot of regulations," he said.
Contractors and backpackers vital to harvests

The farmers told the committee they needed the contractors.

They said the sheer volume of staff needed for short bursts during the season, and the lack of job security, made it unattractive work for many locals, despite the high unemployment rates.

Grower Sue Zaina, from Snapfresh Australia, said whatever recommendations the committee made, she hoped they would not put more responsibilities and costs onto farmers.

"I feel that this is something that needs to be regulated by government," she said.

"We're encouraging these young people to come into the country and enjoy what we've got for them to see.

"Whilst they're on our farms, yes, we'll make sure as a duty of care that they are treated lawfully.

"However, I don't feel that once they go back to their hostel that it should be the responsibility of the farmer.

"That's why we're all talking about licensing and regulation, and needing someone on the ground here that actually goes and visits these hostels and talks to these travellers direc

I think the only way this will stop is a mandatory gaol sentence to stop the creeps paying workers and demanding they secretly repay some back.

Five years for the first offence.

Lots of raids by Fairwork Ombudsman to see who are working for them.

Even weekly random raids , apply a bit of the torch on their bellies

"Dob in a dodgy" rewards for exposing them

Setanta wrote on Jun 27^th, 2016 at 1:31am:


As Gino Marcon has said....those farmers know exactly what is happening ~ labourers are being screwed, and they, the farmers, are totally complicit in the rip off.  They are trying to distance themselves from responsibility by using these labour hire companies.