The definition of “farm gate” has been changed from being a physical location to a virtual one after the Fair Work Commission full bench handed down a decision last week.
Previously, there were implications regarding which award applied to pack house workers, depending on the location of the pack house.
The Victorian Farmers Federation is pleased the commission has recognised the increasing sophistication of horticultural operations. This new definition will give farmers clarity, consistency and the ability to grow their businesses into new value-added areas without perverse restrictions.
In previous decisions, including in the Mitolo case, the farm gate was considered the geographical boundary of a farm, and the coverage of the Horticultural Award was confined to the farm gate. During the four-yearly review of modern awards in the Horticulture Award 2010, the full bench heard the submissions and witness evidence from employer groups, including the NFF.
The full bench agreed the new definition of farm gate applies the Horticulture Award 2010 until “the point at which produce has been rendered fit for sale and ready for market”. This new decision reflects the reality of the modern enterprise.
The NFF also argued that a new definition of “enterprise” be inserted into the modern Horticulture Award. Horticultural enterprises have increased in scale, and supply chains have lengthened. Horticultural produce may move from the farm to a second location for washing, grading and packaging, before it is sold to a retailer, food processor or a cold storage facility.
The full bench also backdated the definition for eight years, giving certainty to producers who had already been functioning within this definition and using the Horticulture Award 2010 for employees at facilities for early processing at physically separate locations.
This acknowledgement by the full bench of the modern demands on farmers within horticulture will have a positive impact across the sector. By recognising the evolutionary processes of the modern farm, the sector will be better able to make business decisions to put their pack houses at the location that best suits their business needs and allows them to take advantage of marketing, value adding or niche market opportunities.
