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Province will hold the line on piece rates – this year
The fate of piece rates could be clear this autumn
by PETER MITHAM
VICTORIA – BC’s long- standing piece rate system won’t be overhauled by June 1, as recommended last year by the Fair Wages Commission.
BC labour minister Harry Bains originally endorsed the commission’s recommendation that all harvesters receive minimum wage by June 1, 2019. However, he also said too little was known about the existing system, created in 1981 with different rates for 15 commodities.
A study commissioned last fall to examine the existing piece rate system and point a way forward remains a topic of discussion with the BC Ministry of Agriculture, and no decision has been taken on next steps. “Workers deserve to make
a fair wage, no matter what their job description,” Bains told Country Life in BC in a written statement. “I’ve received the study, and myself, along with the Minister of Agriculture, are taking the time to review it and consider next steps.” Sources told Country Life in
BC it could be autumn before a decision is taken. Bains has committed to no further changes to piece rates this year. “The piece rates were
increased in January to provide workers with a wage lift, and equally important, provide farmer owners with predictability and stability for this year’s growing season,” he said. “We are not contemplating further increases to the rates this year. Our government understands the challenges of the agriculture industry,
The province is delaying a decision to update its labour policy regarding piece rates for hand harvesters. SEAN HITREC FILE PHOTO
including product pricing set well in advance of the harvest season.” BC’s minimum piece rates
increased 11.5% as of January 1, following a similar increase in the hourly minimum wage last June to $12.65. The minimum wage will rise a further 9.5% in June to $13.85 an hour. Many farm groups fear
changing the piece rate system would further compress farmers’ margins, which have already been squeezed by higher costs for everything from land to shipping and materials such as cardboard and horticultural supplies. New regulations and pests
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combined with the loss of pest control products have exacerbated the frustration. The increase to the
minimum wage this summer, combined with the introduction of the Employer’s Health Tax as part of the phasing out of Medical Service Plan premiums are also squeezing farm employers. Growers who employ workers under the Seasonal Agricultural Workers Program pay the premiums, too, even though they don’t cover workers.
Hot topic
Wages have been a hot topic at grower meetings this spring.
David Mutz of Berry Haven
Farm Ltd. in Abbotsford said wage increases in 2018 added to the tough labour conditions many farmers are facing. “There were a lot of cost
increases in the last year, both hourly and piece rate,” he says.
Mutz expects the province to change how hourly and piece rates complement one another when it reaches its final decision. But how the calculations
will work is a mystery to Rhonda Driediger of Driediger Farms Ltd. in Langley. “It’s all very secretive right
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now,” she says. “We don’t know if they [the provincial government] are in a back room throwing darts.” Greenhouse growers, who also face rising energy costs, are particularly concerned at the impact higher wages could have. But they’re not as big an issue as a couple of years ago, given the move by several other provinces and states to raise their minimum wages, too.
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Responding to grower concerns at the BC Greenhouse Growers Association annual meeting, BCGGA president Armand Vander Meulen of Abbotsford’s Vander Meulen Greenhouses acknowledged that labour costs are high. However, the association is focusing its efforts with government on issues where growers have fewer alternatives. “It’s not like we’re going to be a higher-cost jurisdiction,” he said. “Our labour costs are high, but there are options for labour productivity improvements.” His own greenhouse is exploring technology from the Netherlands to address labour costs, for example. With files from Ronda Payne
COUNTRY LIFE IN BC • MAY 2019
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