Rural Wage Guide 2015/2016

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1 Rural Wage Guide 2015/2016 Horticulture Award

2 NSW Farmers Industrial Association Rural Wage Guide Rural Wage Guide 2015/2016 Horticulture Award Welcome to the Rural Wage Guide 2015/2016. The Rural Wage Guide is an annual publication released by NSW Farmers (Industrial) Association to inform its members of the current award based wages and pay related conditions. In addition, we have also included general information about the National Employment Standards (NES) and agriculture related training wages. The information set out in this wage guide is based on the Horticulture Award 2010, reflecting the 2.5% increase handed down in the 2015 Annual Wage Review Decision. The rates contained in this wage guide are effective from the first full pay period on or after 1 July Coverage This publication covers employers throughout Australia in the horticulture industry and their employees. The horticulture industry includes agricultural holdings, flower or vegetable market gardens in connection with the sowing, planting, raising, cultivation, harvesting, picking, packing, storing, grading, forwarding or treating of horticultural crops, including fruit and vegetables upon farms, orchards and/or plantations. The horticulture industry also includes clearing, fencing, trenching, draining or otherwise preparing or treating land for the sowing, raising, harvesting or treating of agricultural crops, including fruit and vegetables. The horticulture industry does not include plant nurseries or a broadacre mixed farming enterprise. Rates of pay for broadacre farming and livestock operations (which covers mixed farming), dairy and piggery and poultry operations are provided in a separate publication. Please contact the Industrial Relations Department should you require a copy. How to determine the correct rate of pay for your employees? 1. Determine the underpinning Award. There are several Awards relevant to primary production. Please refer to the coverage clause provided in each Award to determine whether you are covered by the particular Award. Please contact us for assistance if you are unsure of the underpinning Award for your employees. 2. Determine the relevant classification. Awards provide different pay rates depending on the classification. Classifications refer to categorisation of roles based on level of responsibilities, experience, expertise and qualification. 3. Match the pay rate with the relevant classification. 4. Check whether there are any relevant loadings, penalties or allowances that may apply in addition to the hourly rate. For example, shift loading, overtime penalty, penalty for work performed on weekends, etc. Kindly note that this wage guide only summarises parts of the Award that relate to the classifications and payment of wages and it is not an exhaustive document that represents all Award conditions. This guide needs to be read in conjunction with the relevant Award in order to understand all of your obligations as an employer. 3

3 Classifications Classification Level 1 Modern Award Description An employee at this level exercises minimal judgment and works under direct supervision. Duties an employee may perform at this level are: performing general labouring duties; sorting, packing or grading of produce where this requires the exercise of only minimal judgment; fruit or vegetable picking, thinning or pruning; performing basic recording functions related to work performed at this level; operating small towing tractor engaged in transfer of produce bins and other containers during harvest; performing a range of housekeeping tasks in premises and grounds; providing assistance within the scope of this level to other employees as required; undertaking structured training so as to enable advancement to Level 2. Level 2 An employee at this level has completed up to 3 months structured training to enable performance of work at this level. The employee works under general supervision, exercises limited discretion, may perform work of a lower level as required without loss of pay and is responsible for the quality of their own work. Indicative duties an employee may perform at this level are: set up and operation of production and/or packaging or picking equipment, labelling and/or consumer picking equipment; using hand trolleys, pallet trucks or other mechanical or power driven lifting or handling devices not requiring a licence; repetition work on automatic, semiautomatic or single purpose machines or equipment; assembling/dismantling components using basic written, spoken and/or diagrammatic instructions in an assembly environment; irrigation, spraying or pruning under general supervision; sorting, packing and grading beyond the scope of Level 1 duties; assisting in the provision of on-the-job training in conjunction with supervisors, tradesperson or trainers; providing assistance within the scope of this level to other employees as required; maintaining simple records; general and routine product testing; undertaking further training so as to enable advancement to Level 3. operating tractors with engine capacity of up to 70 kw; Level 3 An employee at this level performs work above and beyond the skills of an employee at level 2 and to the level of their training, exercises discretion with their level of skills and training, responsible for the quality of their own work, works under routine supervision and may perform work of lower levels as required without loss of pay. Indicative duties an employee may perform at this level are: driving motor lorries or mechanical harvesters or forklifts; assisting in the training, instruction and coordination of employees; operating tractors with engine capacity of over 70 kw; minor maintenance of plant; irrigation, spraying, pruning without supervision; recording detailed information on production and quality indicators; providing assistance within the scope of this level to other employees; undertaking further training so as to enable advancement to Level 4. 4

4 NSW Farmers Industrial Association Rural Wage Guide Classification Level 4 Modern Award Description An employee at this level coordinates work in a team environment or works individually under general supervision, has knowledge of the employer s operation as it relates to the production process, monitors the application of WHS standards, and may perform work of lower level as required without loss of pay. Indicative of the duties an employee may perform at this level are: using precision measuring instruments; furnace/boiler operator; machine setting, loading and operation; inventory and store control licensed operation of all appropriate materials handling equipment; basic engineering and fault handling; basic non-trades maintenance involving the use of tools and equipment within the scope of this award; licensed and certified to operate forklifts, engine driving and crane driving operation; performing quality checks on the work of others; quality assurance/control; assisting in provision of on-the-job training; providing assistance within the scope of this level to other employees; monitoring variables affecting production yields, detecting errors, investigating causes and recommending collective/ preventative action; undertaking further training so as to enable advancement to Level 5. Level 5 An employee at this level works above and beyond the skills of an employee at the Level 4, works under minimum supervision, coordinates and schedules approved work, exercises discretion within the scope of this grade, possesses and uses a trade qualification in the course of their duties; has a sound knowledge of the employer s operation and undertakes lower level tasks as required without loss of pay. Indicative of the duties an employee may perform at this level are: inspecting products and/or materials for conformity with established operational standards and approves/passes first off samples; operating, setting up and adjusting maintenance functions; running adjustments to production equipment; operating all lifting equipment; basic production scheduling and materials handling within the scope of production process or directly related functions; exercising high level stores and inventory responsibilities; providing assistance within the scope of this level to other employees. providing on-the-job training; 5

5 Pay rates The following pay rates only apply to employees in the horticulture industry (excluding broadacre mixed farming enterprises). Employee Classification Full time (38 hours) Part time (hourly) Casual (hourly) 100% 100% 125% Level 1 $ $17.29 $21.61 Level 2 $ $17.79 $22.24 Level 3 $ $18.30 $22.88 Level 4 $ $18.99 $23.74 Level 5 $ $20.13 $25.16 Pay related conditions Pieceworkers Clause 15 The piecework rate fixed by agreement between the employer and employee must enable the average competent employee to earn at least 15% more per hour than the minimum hourly rate under the relevant classification. An employee on a piecework rate will not be entitled to ordinary hours of work and rostering, overtime and meal allowance. The calculation of piecework rates for casual employees will include the casual loading. The piecework agreement between the employer and employee must be in writing and signed by both parties. Casual Employees Clause 10.4 A casual employee is entitled to a 25% casual loading for each hour worked (casual rates for each classification are calculated in the table above). Overtime for Casual Employees: There is no specific entitlement to overtime for casual employees; therefore casual employees are not entitled to payment of an overtime penalty. Ordinary Hours Clause 22.1 The ordinary hours of work for all full-time and part-time employees other than shift-workers will not exceed 152 hours over a four week period, provided that: (a) (b) (c) (d) The ordinary hours will be between Monday and Friday, or Monday to Saturday if agreed with the majority of employees. The ordinary span of hours will be between 6am to 6pm, unless otherwise agreed with the majority of employees. The ordinary maximum hours of work per day will be 8 hours, unless otherwise agreed with the majority of employees, in which case the ordinary hours may be extended to up to 12 hours per day. All time worked by full-time and part-time employees in excess of the ordinary hours will be deemed overtime. 6

6 NSW Farmers Industrial Association Rural Wage Guide Shiftwork Clause 22.2 The ordinary hours of work for a shift-worker will not exceed 152 hours over a four week period. The span of ordinary hours will be Monday to Friday, to a maximum of eight (8) hours without the payment of overtime. A shift-worker will be paid an additional 15% loading while working on the following shifts: Afternoon shift = any shift finishing after 6pm and at or before midnight; and Night shift = any shift finishing after midnight and at or before 8am. Overtime Clause 24.2 Sunday Work Work performed on a Sunday is considered as overtime for full-time and part-time employees. All employees required to work on a Sunday will be paid a minimum of three hours. Please refer to the paragraph below relating to overtime. The rate of pay for overtime will be 150%, except for overtime worked on a Sunday. The rate of pay for overtime worked on a Sunday, except during harvest period, will be 200%. During harvest, the first eight (8) hours of overtime in a week may include five (5) hours work on a Sunday at the rate of 150%. Overtime Penalty Rates for Full-Time and Part-Time Employees The following rates apply when a full-time or a part-time employee works overtime hours: Employee Classification Overtime Hours Overtime Hours 150% 200% Level 1 $25.94 $34.58 Level 2 $26.69 $35.58 Level 3 $27.45 $36.60 Level 4 $28.49 $37.98 Level 5 $30.20 $40.26 Overtime Penalty Rates for Casual Employees Overtime for Casual Employees: There is no specific entitlement to overtime for casual employees; therefore casual employees are not entitled to payment of an overtime penalty. Casual employees are not entitled to payment of an overtime penalty. However, should you choose to pay an overtime penalty when casual employees work overtime hours, the following rates apply: 7

7 Employee Classification Overtime Hours Overtime Hours 150% + 25% casual loading 200% + 25% casual loading Level 1 $30.26 $38.90 Level 2 $31.13 $40.03 Level 3 $32.03 $41.18 Level 4 $33.23 $42.73 Level 5 $35.23 $45.29 Time off instead of payment for overtime Clause 24.1 An employee will be allowed time off duty, with pay for a period equal to the overtime worked. Such time off must be taken within the succeeding three weeks unless the employer and employee mutually agree that it be taken at some other time. Public Holidays Clause 28.3 All work performed on public holidays will be paid for at the rate of 200% of the ordinary rate. Employee Classification Public holiday hourly rate for fulltime and part-time employees Public holiday hourly rate for casual employees 200% 225% Level 1 $34.58 $38.90 Level 2 $35.58 $40.03 Level 3 $36.60 $41.18 Level 4 $37.98 $42.73 Level 5 $40.26 $45.29 Payment for absence on a public holiday A full-time or a part-time employee is only entitled to payment for being absent from work on a public holiday if the public holiday falls on the employee s normal day of work. An employee who is not normally required to work on a day on which a public holiday falls will not be entitled to payment for absence on the public holiday. For example, an employee who normally works from Tuesday to Saturday is not entitled to payment for absence on the Easter Monday public holiday. Meal Break Clause 23.1 A meal break of not less than 30 minutes and not more than one hour must be allowed each day. The break must be taken no later than five hours after commencing work. The meal break may be taken at a time agreed, based on an agreement between the employer and an individual employee. All work performed on the instruction of the employer during a recognised meal break will be paid for at 200% of the relevant minimum wage. Such payment will continue until the employee is released for a meal break of not less than 30 minutes. 8

8 NSW Farmers Industrial Association Rural Wage Guide Rest Break Clause 23.2 Employees are allowed a paid rest break of 10 minutes each morning. If the employee and employer reach an agreement for an additional rest break, such a break will be unpaid and in addition to the employee s ordinary hours of work. Ten hour break after ceasing work for the day Clause 23.3 An employee is entitled to a break of 10 hours between finishing work on one day and commencing work on the next day. Overtime rates will be paid for work required to be performed where an employee has not had the 10 hour break until such time the employee is able to take the 10 hour break. Higher Duties Clause 18 An employee engaged for more than two hours during one day or shift on duties carrying a higher minimum wage than their ordinary classification must be paid the higher minimum wage for such day or shift. If an employee is engaged for two hours or less during one day or shift on duties carrying a higher minimum wage than their ordinary classification, they must be paid the higher minimum wage for the time so worked Allowances Item No. Clause No. Description Amount (a) Leading hand allowance: Leading hands, in charge of: 2 to 6 employees (per week extra) 7 to 10 employees (per week extra) 11 to 20 employees (per week extra) More than 20 employees (per week extra) $20.46 $23.84 $33.98 $ (b) Wet work allowance $ (c) Tool and equipment allowance (this only applies when employees are required to supply their own tools and equipment) Discussed with employee (d) First Aid allowance $ Meal allowance (per meal). This does not apply if a meal is provided by the employer. $11.79 An employee is entitled to a meal allowance (or be given a meal) if he/she is required to work overtime for more than 2 hours after his/her ordinary ceasing time without having been notified of this the previous day. If the work extends into a second or subsequent meal break, the meal allowance will apply again. 9

9 Junior Rates of Pay Clause 16.1 Age of Employee % of adult rate Under 16 years of age years of age years of age years of age years of age years of age 100 Trainee wages wage level C Minimum pay rates for trainees are determined by the National Training Wage, which is a model provision in all modern awards. Most traineeships in the agricultural sector, such as the primary or rural production training packages are allocated to Wage level C under the relevant modern Awards. This part summarises the National Training Wage provisions that are relevant for rural production. Trainees may be full-time or part-time. A full-time traineeship is based on 38 ordinary hours per week with 20% of ordinary hours being approved training. A part-time traineeship is based on less than 38 ordinary hours with 20% of the hours being approved training. No reduction in wages for current employees An employee who was employed by an employer immediately prior to becoming a trainee with that employer must not suffer a reduction in their minimum wage per week or per hour by virtue of becoming a trainee. Casual loadings will be disregarded when determining whether the employee has suffered a reduction in their minimum wage. Minimum wages for Full-time Traineeships The minimum wages for a trainee undertaking a full-time AQF Certificate Level I-III traineeship - Classification Highest year of schooling completed Year 10 Per week Year 11 Per week Year 12 Per week School leaver $ $ $ Plus 1 year out of school $ $ $ Plus 2 years out of school $ $ $ Plus 3 years out of school $ $ $ Plus 4 years out of school $ $ Plus 5 or more years out of school $

10 NSW Farmers Industrial Association Rural Wage Guide The minimum wages for a trainee undertaking a full-time AQF Certificate Level IV traineeship: The minimum wages for a trainee undertaking a full-time AQF Certificate Level IV traineeship are the minimum wages for the relevant full-time AQF Certificate Level III traineeship with the addition of 3.8% to those minimum wages. The minimum wages for an adult trainee undertaking a full time AQF Certificate level IV are: First year of traineeship (per week) - $ Second and subsequent years of traineeship (per week) - $ Minimum wages for part-time traineeships The minimum wages for a trainee undertaking a part-time AQF Certificate Level I-III traineeship: Classification Highest year of schooling completed Year 10 Per Hour Year 11 Per Hour Year 12 Per Hour School leaver $9.71 $10.70 $12.40 Plus 1 year out of school $10.70 $12.40 $13.95 Plus 2 years out of school $12.40 $13.95 $15.58 Plus 3 years out of school $13.95 $15.58 $17.36 Plus 4 years out of school $15.58 $17.36 Plus 5 or more years out of school $17.36 The minimum wages for a trainee undertaking a part-time AQF Certificate Level IV traineeship: The minimum wages for a trainee undertaking a part-time AQF Certificate Level IV traineeship are the minimum wages for the relevant part-time AQF Certificate Level III traineeship with the addition of 3.8% to those minimum wages. The minimum wages for an adult trainee undertaking a part time AQF Certificate level IV are: First year of traineeship (per hour) - $18.01 Second and subsequent years of traineeship (per hour) - $18.70 School-based traineeships The minimum wages for a trainee undertaking a school-based AQF Certificate Level I-III traineeship whose training package is allocated to Wage Level C are Year 11 or lower (per hour) - $9.71 Year 12 (per hour) - $

11 National Employment Standards (NES) There are 10 minimum terms and conditions of employment prescribed as a safety net by the Fair Work Act They are briefly outlined below: 1. A maximum standard working week of 38 hours for full-time employees, plus reasonable additional hours. 2. A right to request flexible working arrangements for eligible employees. 3. Parental and adoption leave of 12 months (unpaid), with a right to request an additional 12 months for eligible employees. There are distinct rules when both partners of the couple can take leave days of paid annual leave that accrues progressively and accumulates from year to year. Part-time employees accrue annual leave on a pro-rata basis. Casual employees are not entitled to paid annual leave. Employees covered by the Horticulture Award are entitled to 17.5% annual leave loading. The Horticulture Award also provides the ability for employers to direct employees to take annual leave when they have accrued an excessive amount days of paid personal/carer s leave that accrues progressively and accumulates from year to year. Part-time employees accrue annual leave on a pro-rata basis. Casual employees are not entitled to paid personal/carer s leave. In addition, the NES also provide 2 days of paid compassionate leave for each permissible occasion and two days unpaid carer s leave for each permissible occasion. 6. Community service leave for jury service or activities dealing with certain emergencies or natural disasters. This leave is unpaid, except for jury service, where employers are obliged to make up the pay of employees on jury service (between what the employee receives as stipend for serving jury duty and the employee s ordinary rate of pay),up to a maximum of 10 days. 7. Long service leave. In NSW long service leave is governed by the Long Service Leave Act 1955 and it provides for 2 months (8.667 weeks) for 10 years of service. There may be an obligation to pay pro-rata long service leave upon cessation of employment for employees who have worked for more than 5 years but less than 10 years. 8. The entitlement to be absent on public holidays without loss of ordinary pay. 9. Notice of termination (depending on period of service) and redundancy pay (not applicable for small business employers). 10. The right for new employees to receive the Fair Work Information Statement, which is a 2 page document produced by the Fair Work Ombudsman outlining the NES and other workplace rights. 12

12 NSW Farmers Industrial Association Rural Wage Guide Public holidays for 2015/2016 The NES prescribes for full-time and part-time employees to receive a day off work without loss of pay on any given public holiday gazetted in NSW. Employees that are not required to attend work on a public holiday are to receive payment for their ordinary hours at their base rate of pay. Employers that require employees to work on a public holiday must pay the employee a penalty rate in accordance with their relevant industrial instrument (i.e. modern Award) for the hours worked. Employers can require employees to attend work on a public holiday for operational reasons of the business. On the other hand, employees can refuse to work on a public holiday for personal reasons and circumstances. Refer to the below table for the prescribed public holidays declared in NSW for 2015 and Additional public holidays declared in NSW may apply. Check with NSW Farmers (Industrial) Association for further information and pay rates: Public holiday New Years Day Thursday, 1 January Friday, 1 January Australia Day* Monday, 26 January Tuesday, 26 January Good Friday Friday, 3 April Friday, 25 March Easter Saturday Saturday, 4 April Saturday, 26 March Easter Sunday Sunday, 5 April Sunday, 27 March Easter Monday Monday, 6 April Monday, 28 March Anzac Day Saturday, 25 April Monday 25 April Queen s Birthday Monday, 8 June Monday, 13 June Bank Holiday# Monday, 3 August Monday, 1 August Labour Day Monday, 5 October Monday, 3 October Christmas Day Friday, 25 December Sunday, 25 December Boxing Day Saturday, 26 December Monday, 26 December Additional Day^ Monday, 28 December Tuesday, 27 December * From 31/12/11 when Australia Day (26 January) falls on a Saturday or Sunday, there will be no public holiday on that day as the following Monday will be declared a public holiday. # Applies to banks and certain financial institutions see Retail Trading Act ^ From 31/12/11, the Holiday Act provides for an extra public holiday to be added when Christmas Day or Boxing Day falls on a weekend. Disclaimer This information is produced by the NSW Farmers (Industrial) Association for members only on the understanding that while every reasonable effort has been made to ensure that its contents are accurate and reliable, NSW Farmers (Industrial) Association and its employees and office bearers: 1. are not responsible or for the results of any action taken on the basis of this information, nor for any errors or omissions; 2. expressly disclaim all and any liability to any person with respect of anything and of the consequences of anything done or omitted to be done by such a person in reliance, whether whole or partial, upon the whole or any part of the contents of this information; and 3. do not purport to provide legal advice and if legal or other expert advice is required then direct contact with the NSW Farmers (Industrial) Association, or the services of a confident professional person should be sought. 13

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