It’s great to see employers have led the way for a pay increase in the shearing industry. The New Zealand Shearing Contractors’ Association (NZSCA) represents contractors who employ sheep shearers as employees. In May 2018 they collectively voted for an increase in shearing industry rates. Disappointingly however, because there is no base award it was only a recommendation. Anecdotal evidence is that while some contractors acted quickly during pre-lamb to increase their worker’s rates, many have not. Unlike Australia that has a legal federal Award rate and a Fair Pay Commission, the NZSCA recommendation is not a legal industry award so it can be undermined by ‘anything goes’ employers.
It’s fair to say industry rates are all over the place. Some employers are not willing to pay anything more than the minimum wage for hourly workers, which is currently $16.50 an hour despite workers’ skills and experience. Many others are refusing to correctly pay their permanent workers for accumulated holiday pay. The industry has also changed; accommodation is no longer factored into pay rates, there are no more ‘living away’ or travel allowances for most workers and for many, 2018 was the first year shearers received their legal entitlement to holiday, sick and bereavement pay. More worryingly, some contractors are charging their workers openly for business costs. All of these variations cause an overall industry pay disparity between shearers working in the same shed doing the same job, and others where some workers are charged some costs and others are not. It also means that more ethical employers are disadvantaged. It also becomes very difficult for employers to find out what a fair rate is.
A large number of New Zealand shearing industry workers on social media express dissatisfaction in recent years over the way wages have stagnated next to the Australian rates. I agree with the NZSCA that a pay increase was necessary this year to even up the playing field and encourage Kiwi workers to remain in New Zealand over the pre-lamb period when most would otherwise go to Australia. And many contractors are behind anti-competition behaviour when ‘anything goes’ contractors fail to pay their workers their legal entitlements and in doing so, undermine those in the market who pay their worker’s fairly and compete in their local markets with integrity.
By Christmas this year, the Fair Pay Agreements’ workgroup led by retired King Country farmer and former Prime Minister, Jim Bolger will report back on its review. There is a strong possibility they will recommend current legalisation to be amended that sees the creation of a Fair Pay Commission, just like in Australia. It is also predictable that only collective action and organised union membership will see an industry succeed at the Fair Pay Commission. Once established, it will require a Fair Pay Commission and a collective, organised work base to have the ability to legalise Pay Awards. Fair Pay claims would be made to the Commission to set absolute minimum terms and conditions for industries that have a collective base.
This presents an opportunity for leadership by current workers to change the future for NZ shearing industry workers. My forty years working with the industry and sixteen years as an employment lawyer views this as a unique opportunity to action change for all the parties in the industry, farmers’ contractors’ and workers’.
The organising has already begun; in September this year a national union with other agricultural and horticultural members (including forestry and kiwi fruit pickers) established a connection with the industry from which to create a collective agreement to ready these industries for Fair Pay Commission applications.
Workers within other industries can also make contact and build a campaign for an Award rate in New Zealand such as the Australian industry enjoy and supports. It’s about moving from a place of market exploitation of hard-working New Zealanders to a fairer New Zealand society that includes a fairer wage structure that is both transparent and accountable.
The timing is right to have a Fair Pay campaign that recognises that our industry workers, shearers and shed hands (wool handlers and pressers) should be covered under one of these Awards. This would bring New Zealand into alignment with Australia, and amend the many issues faced by shearers and wool handlers throughout New Zealand.
Next year it will be twenty-five years since the New Zealand shearing industry has had a base shearing rate, or legal Award. Let’s make sure sheep shearers and handlers are included in the first round of these FPAs through building union membership now.
Jills Angus Burney, Barrister and FIRST Union Organiser
You can sign up to FIRST Union Sheep Shearers below, and Jills will be in touch!
https://www.firstunion.org.nz/join-us
