Minimum wage decision another blow to growers already facing rising costs

Queensland Fruit & Vegetable Growers (QFVG) says the Fair Work Commission's (FWC) latest wage decision will increase cost pressures for fruit and vegetable growers at a time when many businesses are already struggling to absorb rising input costs.  

"Queensland growers want to pay their workers fairly, but this decision comes as many businesses are already under significant financial pressure," QFVG CEO Scott Kompo-Harms said. 

"Recent QFVG grower sentiment data found more than three-quarters of growers describe their businesses as either ‘under pressure’, ‘struggling’, or ‘unsure about their future viability’. 

"Almost 80 per cent of growers told us they are delaying or reconsidering business decisions because of ongoing cost pressures and uncertainty. 

"At the same time, every grower surveyed reported increases in key input costs including fuel, fertiliser, freight and plastics, with more than half experiencing freight increases of between 25 and 50 per cent. 

"For many horticulture businesses, labour is one of the largest operating costs. While growers understand the need to support workers, another increase adds to an already growing list of expenses that businesses are being asked to absorb. 

“We are all facing rising costs - whether it’s a family juggling increasing grocery bills, insurance premiums and mortgage repayments, or a grower opening another business invoice for fuel, freights, or labour - the pressure is real. 

“It is incumbent on institutions like the FWC to consider the impact of their decisions on the whole economy – not just today, but tomorrow, next month and next year.” 

Mr Kompo-Harms said the decision also highlights a broader challenge facing the Australian economy, with mandated wage increases occurring against a backdrop of weak productivity growth. 

"Australia's productivity performance has been declining for some time, yet businesses continue to face rising costs across the board," he said. 

"When wages increase faster than productivity growth, those costs don't simply disappear. They move through supply chains, place upward pressure on prices and risk contributing to ongoing inflation. 

"That makes it harder for interest rates to come down and extends the cost-of-living pressures already being experienced by Australian households." 

Mr Kompo-Harms said the flow-on effects are particularly concerning for the fresh produce sector, which is already working to encourage greater fruit and vegetable consumption amid rising household budget pressures. 

"Fresh fruit and vegetables are critical to the health and wellbeing of Australian families," he said. 

"As an industry, we're working hard to encourage Australians to eat more fresh fruit and vegetables, but consumers are becoming increasingly price conscious at the checkout. 

"Every additional cost imposed on the production system makes it harder to keep fresh produce affordable and accessible. 

"The risk is that higher production costs continue flowing through the supply chain at a time when households are already carefully managing their grocery budgets." 

Mr Kompo-Harms said governments must remain focused on policies that improve productivity, strengthen business competitiveness, and reduce the cost of producing food in Australia. 

"Growers support fair outcomes for workers, but we also need policy settings that recognise the cumulative impact of rising costs on the businesses responsible for feeding Australians," he said. 

"If we want a strong domestic food production system, we need to ensure growers remain viable. Without that, the long-term affordability and availability of fresh fruit and vegetables is put at risk."