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Tougher regulation of Aussie LHCs recommended

27 April 2016

The group maintains that the majority of LHCs are doing the right thing in the industry. The deliberate exploitation of backpackers and other seasonal workers in the horticulture industry is totally unacceptable to growers and the industry.

The majority of growers understand that working holidaymakers are the valuable heart of the industry’s labour force. Growcom says is encouraging the industry to introduce improved workforce planning as part of the Production Horticulture Workforce Development Plan, however, as a highly seasonal industry subject to the vagaries of nature and market conditions the industry’s reliance on a temporary flexible workforce will continue to be high into the future. The large numbers of workers required for relatively short-term harvest employment are simply not available from local workforces.

The industry body adds that it has worked with growers around the state to educate them about their ‘due diligence’ obligations to ensure that any third party workforce provider they work with operates within the law. This is sensible risk management for businesses.

Growcom has also developed a tailored industry service agreement as a basis for negotiation with LHCs. The document clearly establishes the roles, obligations and responsibilities that each party has to these workers. It includes ensuring that all workers provided by the LHC are legally entitled to work in Australia. The agreement enables growers to test the legality of any LHC.

It says that it would welcome the government’s support for the roll out of educational programmes and these agreements throughout the industry.

Growcom has warned growers that they are seriously at risk if they choose to deal with LHCs who undercut wages and superannuation. Even though the grower is not the legal employer in the situation, they are still open to prosecution as an accessory to the LHC’s illegal activity.

In 2007, the Australian government introduced criminal sanctions applying to businesses knowingly or recklessly employing foreign workers living or working illegally in Australia. Growcom says it welcomed the civil penalties regime introduced on 1 June 2013 which supplements the existing criminal provisions and enables an employer who unknowingly allows or continues to allow an unlawful non-citizen or non-citizen working in breach of their visa conditions to be prosecuted under the Migration Act.

However, Growcom also joins with other agricultural industry bodies in raising the need for a single national regulatory framework for labour hire companies to assist existing laws and regulations to operate more efficiently. Through registration or licensing, LHCs would be required to meet a high standard of operations and publicly promote their adherence to the requisite legislation. Tightening penalties, especially for repeat offenders, is also in order.

It says that it’s gratifying to see the Department of Employment has barred Approved Employer status for the purposes of accessing the Seasonal Worker Programme to LHCs who cannot demonstrate their legitimacy over a five year period. Regulations about LHC access and performance under this programme may need to be further tightened and monitored over time.

It is also desirable that the Fair Work Ombudsman should be given the necessary resources and staffing to pursue and prosecute unscrupulous operators. There is only a handful of Fair Work Inspectors operating in southern Queensland at the present time and the reality is that many operators escape scrutiny or re-emerge in different regions under different names. The ease with which anyone can register for an ABN and then set themselves up as a contractor, operating in many cases across state borders, adds to the difficulties in bringing rogue operators to account.

The inquiry is due to report its findings in the first half of this year.

Source: Growcom