A Fair Work Commission ruling regarding overtime entitlements for casual employees could have dire implications for Tasmania's fruit growers.
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The commission published its four-yearly review of the Horticulture Award 2010 last week, stating its intention to establish overtime entitlements for casual employees.
Under the new award ruling casual horticulture workers who work more than 304 hours in an eight-week period, which averages out to be 38 hours per week, or more than 12 hours in a single day, will receive overtime at the rate of 175 per cent of their minimum hourly wage.
They will also receive 15 per cent penalty rates for working outside their ordinary hours, which have been designated as between 5am and 8.30pm.
In addition, all hours worked by a casual employee on a public holiday will be paid at a rate of 225 per cent of their minimum hourly wage.
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Unions and industry bodies on behalf of their membership, including Tasmanian organisations, and fruit growers made number of submissions to the commission regarding changes to the award, which were taken into consideration.
The National Farmers' Federation said the commission's decision "would have a very significant financial impact on growers".
"...growers would need time to prepare for, manage and find ways to absorb this financial impact and for industry bodies to disseminate information regarding the outcome of this matter and educate growers as to its requirements," the federation submitted.
Growers who made submissions said they "would be put of business if they had to pay overtime to casual employees".
They also said introducing overtime payments for casual employees "would result in increased costs to consumers and potentially result in a shift to imported fruit", "would significantly impact on the industry's export competiveness" and "would result in extra administration costs associated with monitoring hours worked and pay rates as well as hiring additional staff".
The Fair Work Commission's decision on overtime and penalty rates for casual workers under the Horticulture Award will operate from the start of the first full pay period on or after April 15.
Fruit Growers Tasmania was contacted for comment.