United call for labour hire regulator in ag sector

Farm workers. | Newsreel
There a calls for a regulator to oversee labour hire practices in the agricultural sector. | Photo: Pix Deluxe (iStock)

Unions and business have united to urge beefed up oversight of employment practices in Australia’s agriculture sector.

A report commissioned by Woolworths and the Retail Supply Chain Alliance, an alliance of trade unions in the fresh food supply chain, found regulatory gaps in the labour hire industry which supplied regional and seasonal farm workers.

The McKell Institute report found workers that had reported wage theft by labour hire providers, poor working conditions and mistreatment.

McKell Institute CEO Edward Cavanough said the Licencing Labour Hire report found 50 percent of labour hire workers in the sector earned less than $50,000 annually, with many being seasonal migrant workers with restrictive visa conditions.

“Low quality regulatory frameworks in the labour hire industry have seen rogue operators take advantage of loopholes, exploit workers and undermine the industry,” Mr Cavanough said.

He said there needed to be national regulations to improve oversight of labour hire agencies in the horticulture sector, with the report recommending:

  • A dedicated enforcement team for horticulture within the National Labour Hire Regulator.
  • More sustainable funding for rural and regional enforcement, including workplace inspections.
  • A national database to prevent rogue labour hire operators from re-entering the market.
  • Regular audits and public reporting to improve transparency.

“We have even seen cases of ‘regulatory shopping’ where unscrupulous companies relocate to states with weaker licensing laws, such as Tasmania or New South Wales.

“We need better protections and stronger enforcement mechanisms in place so these workers can go to work every day knowing they will be safe.”

Mr Cavanough said while most providers operated ethically, a small, but harmful group continued to exploit vulnerable workers.

“The establishment of a regulator is long overdue when it comes to protecting workers and ensuring ethical practices are enforced.

“Farmers and horticulture businesses are being let down by a system that allows a handful of bad actors to undermine the sector.”