Reality Of Kiwifruit Wages Not What Industry Claims

Recent claims by kiwifruit employers that wages are now as high as $60 an hour are ‘total nonsense’ says FIRST Union, whose representatives are currently in collective bargaining with industry leader Seeka. Negotiations have revealed that most workers are still on low wages, and major Covid-19 outbreaks have hit pack-houses and shared accommodation facilities for RSE (Recognised Seasonal Employer) workers.

"Seeka has gone out of its way to pressure the Government for more RSE workers during the pandemic, with the primary purpose of undercutting local wages. Now, hundreds of those workers have Covid," said Anita Rosentreter, FIRST Union Strategic Project Coordinator.

"Despite the rosy picture and fanciful claims by horticulture employers, most Seeka workers have not even received a pay increase in line with inflation this year."

Seeka CEO Michael Franks told Stuff yesterday that pack-house wages had been lifted to $24 an hour, but Ms Rosentreter says, "The company has admitted to us that $1.25 of that is a "seasonal allowance" because of the border closure and it'll be shaved off after this harvest."

"Trimming workers’ pay from one year to the next while inflation surges is a big slap in the face."

"The industry is playing fast and loose with the truth about pay rates and have only themselves to blame for a so-called labour shortage - there’s a shortage of decent jobs in the industry, not a shortage of good workers."

Seeka operate pack-houses across Aotearoa and are the largest kiwifruit producer in New Zealand and Australia, and last month declared $23.5 million net profit before tax for 2021. Net profits have increased 137% in the last two years at the same time as the company has swallowed up operations across the country. Ms Rosentreter says the workers who generated those returns are being denied their fair share.

"Horticulture employers are keeping local workers’ wages low by using relatively cheap seasonal labour, despite support from Government to lead by example," said Ms Rosentreter.

"It's the Government that has fronted up to fix the industry's problems - like workers not getting paid when it rains - not the employers themselves."

"We've been trying to bargain a national collective agreement for workers so that they have their own forum to resolve issues, but Seeka is refusing."

"These are essential workers in the food supply chain but are treated expendably. It's simply not on."

Dennis Maga, FIRST Union General Secretary, also raised concerns about the living conditions of RSE workers in employer-arranged accommodation, where there have been hundreds of cases of Covid-19 in recent weeks.

"Frankly, this should raise questions about their ability to employ these workers in the first place if they aren’t able to adequately house them and look after their health and wellbeing when they arrive in Aotearoa," said Mr Maga.

"We’re calling on officials from Immigration New Zealand to take a closer look at Seeka’s operations - they’ve been supported by Government to employ thousands of Pacific workers, but it appears that many are living in unsafe conditions."

"All of this results from a lack of oversight of their industry and a lack of bargaining power for their workforce, who are used to being exploited for low wages and poor conditions and have not had a chance to negotiate collectively before now."

"I don’t believe they should be allowed to continue employing RSE workers in this manner until they have proven they can support them and conduct fair and transparent negotiations with local workers first."

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