Behind the scenes: A simple look at complex tech

Using-a-laptop

In this blog, we explore common tech terms and concepts that you may have heard of but might not fully understand. Chances are, you interact with SaaS tools every day, whether it’s checking your email on Outlook.com, messaging friends on WhatsApp, streaming shows on Netflix, or shopping on Amazon. These are all examples of SaaS. We break down these ideas so you can get a better understanding of what really goes on under the hood.

What is SaaS?

SaaS stands for Software as a Service. It’s software that you use over the internet through a web browser or app, rather than installing it on your computer. ABC Software’s ABCgrower, ABCspray and ABCquality are SaaS, as are Xero and Gmail. The software runs on servers in the cloud, rather than on your computer or servers. Think of it like renting a fully furnished apartment rather than buying a house. You just move in and use it, and the landlord handles all the maintenance.

What is the Cloud?

The cloud is a bunch of powerful servers (computers) located in data centres, and often owned by companies like Amazon, Microsoft, or Google. You use the cloud-based servers to run programs and store data instead of your own computer.

This means you can use the software and access your files from any device with internet, you don’t need big servers at your home or office and can scale up storage and computing power as needed. Most SaaS products use a multi-tenant database, meaning one database serves many customers. This is cost-effective as each customer doesn’t require their own infrastructure. Security and backups are handled for you. Like renting, the owner keeps it secure and maintained.

What’s the difference between a website and an app?

A website is a collection of web pages you access through a browser (like Chrome, Safari, or Edge). It works online so you don’t need to install it, and you’re always accessing the most recent content.

An app (short for application) is a program installed on your device (phone, tablet, or computer) which gets updated automatically or manually when new content is released. Think of it like a tool in your toolbox, available to use when you need it. Some apps, like the ABCgrower App, work offline so you can use them without relying on an internet connection.

How can an app be SaaS if you have to install it?

SaaS describes how the software is delivered and hosted, not necessarily how you access it. An App is how you use the software on your device. Some apps are SaaS and some are not. For example, if you log in to Gmail online this is web browser SaaS. If you install the Gmail app on your phone this is app-based SaaS;  you install the app, but your emails are still stored and managed in the cloud.

ABCgrower has a website and an app. All features are available on the website and this is where you process your records. A set of features are available on the app, that is the tools required for data capture in the field, like recording workers time and activity and harvested produce. Processes such as adding a new user or running a pay run are done on the website.  ABCgrower has an app in addition to the website because the app runs offline which allows you to collect data in the field without requiring a reliable internet connection. It then connects to the cloud when you ask it to and an internet connection is available. Information recorded on app is uploaded from the device to the cloud and changes made on the website are downloaded to the app on the device. 

What is a multi-tenant database?

This is where many different organisations (tenants) often use the same software. A multi-tenant database stores all their data in one database while keeping it separate and secure. Thinking of it like renting an apartment; all tenants share the building, lifts and amenities, but each apartment is private and secure.

ABC Software’s SaaS products are examples of this, and a key advantage is that new features are available for everyone. To support this the architecture and infrastructure must be powerful, reliable and fast, now and into the future. For this reason, ABC SaaS has recently gone hyperscale.

What is hyperscale?

It means the software can instantly and efficiently scale up to handle massive or fluctuating workloads without slowing down. The system stays fast, stable, and reliable right throughout peak times. It’s like automatically adding more lifts and carparks when tenants move into your apartment building.

 

The technology behind the tools you use every day works together to keep software like ABCgrower, Gmail, or Netflix fast, reliable, and always up-to-date. Your data is secure, updates happen automatically, and the system can scale to handle as many users as needed, so you can focus on using the software, not managing it.

How to make the right choice to buy or build

Many large growers and packers are facing increasing pressure from operational complexity, regulatory requirements, and evolving market demands. At ABC Software, we often hear from organisations that are struggling with software at end-of-life, fragmented systems that no longer scale with their business, or have gaps in functionality with their current software providers.  Large organisations with significant IT capability and resources question whether to continue partnering with off-the-shelf solutions or invest in building custom systems in-house. Navigating these challenges effectively requires a clear understanding of the trade-offs between buying, building, and optimising software to support growth and compliance.

Pros of buying

The pros of buying software include:

  • Faster implementation: Ready-to-use solutions can often be deployed quickly.
  • Lower upfront development cost: No need to hire developers or invest in custom development.
  • Proven reliability: Established providers of horticulture software are experts in their field, and their software is tried tested across multiple clients. Compliance-ready tools and reporting is built-in. A good provider will bring deep knowledge and innovative ideas.
  • Support & updates included: The software provider handles bug fixes, security updates, and new features. You are not relying on the institutional knowledge of a small team.
  • Scalability: A commercial solution should grow with your business, let you add modules and features as required and offer tiered pricing plans for SaaS products.

Cons of buying

Commons cons of buying software are:

  • Limited customisation: May not fit your workflows or unique business needs.
  • Vendor dependency: You rely on the vendor for updates and support.
  • Ongoing subscription costs: SaaS or license fees can add up over time.
  • Integration challenges: Off-the-shelf software might not integrate smoothly with existing systems.
  • Feature bloat: You may pay for features you don’t use.

Pros of building

On the flipside the pros of building software in-house are:

  • A fully tailored solution to match your exact business processes and workflows.
  • You control features, updates, integration with existing internal systems, and future changes.
  • In some areas, proprietary software may offer a competitive advantage if it can differentiate your business.

Cons of building

And the cons of building in-house:

  • High upfront cost: Development, testing, and infrastructure is expensive.
  • Longer time to deploy: Custom projects take months to years to deliver.
  • Maintenance burden: Your team is responsible for updates, bug fixes, and security.
  • Resource dependency: Requires skilled developers with extra resource during the build phrase, ongoing support staff, and outsourcing extra resource at times.
  • Risk of project failure: Custom software projects can run over budget, behind schedule, and fail to meet requirements. A key challenge of managing an in-house project is making every decision and action informed, efficient, and effective.

Overcoming challenges

Let’s revisit the cons of buying and how ABC Software overcomes these factors.

  • Limited customisation: ABC Software’s SaaS products have been built over time with the input of a multitude of growers and packers across many produce types. As a result, they include a huge amount of flexibility and are designed to sit over your existing business process. Their on-premise solutions are fully customisable.

  • Vendor dependency: You have access to a dedicated, highly skilled team that handles updates and feature development which ensures your software benefits from continuous improvements.  Support is guaranteed to be available around the clock. This increases reliability and reduces internal overhead.
  • Ongoing subscription costs: Annual SaaS or license fees are usually a fraction of what it would cost to hire and manage an internal team capable of delivering equivalent functionality. Further, it reduces risk of staff turnover, skills gaps, and failed projects.
  • Integration challenges: Integrating with other systems requires development and maintenance regardless of whether you buy or build software. There are numerous instances where ABC Software integrates with third-party systems, for example an EDI with supermarket sales order systems in Australia.
  • Feature bloat: ABC Software’s pricing structure is module-based, ensuring you only pay for what you use. Further, the SaaS subscription model has a tiered structure to ensure fairness and no cost blow out.

ABC Software has over 20 years in horticulture and sits at the sweet spot of having the scale to serve and the flexibility to adapt. For growers and packers weighing up whether to buy or build, the right decision depends on your long-term goals, internal capability, and appetite for ongoing maintenance. What’s most important is finding a solution that supports growth, compliance, and operational clarity, regardless  of whether you partner with an experienced provider. ABC Software’s experience across the full horticultural value chain gives us a unique understanding of both sides of this equation, helping clients choose the most effective path forward for their business.

Getting the best out of managing winter work

A worker training grape vines

After harvest there are many important off-season tasks to do

Just because fruit isn’t being picked, it doesn’t mean growers sit still! There’s plenty of important off-season tasks to be done; infrastructure maintenance, pest and disease control, and weed management, to name a few.

We tend to think of harvest by number of bins, kilos, or pallets but how do growers manage off-season work that is also by piece, like winter pruning, or vine or tree training for example?

Off-season tasks often require fewer workers than harvest, but they’re usually needed over several months, and winter work often requires skill and precision. This can be an overlooked opportunity to better monitor and manage workers with a resultant reduction in labour cost.

Growers increasingly use digital tools or apps to track who worked on which rows or blocks, measure how much area each person covered and record quality checks. In ABCgrower any worker activity can be captured by time or by piece. For example, recording the number of trees a worker has pruned. A supervisor has real-time visibility to quantity done per hour for each of their crew members or earned hourly rate when paying piece rate. Crews can be better managed, as it happens. ABCgrower allows information captured by piece to be paid by piece or converted to hourly wages.

While work rates are highly important it can’t come at the cost of quality; it’s a constant balancing act between quality and labour cost. ABCgrower comes inclusive of a module that allows organisations to assign workers to rows (or bays or areas). This has the advantages of capturing work done by piece (tree, vine, plant, etc.) with the additional benefit of having visibility to who did what, where and when. For example, a QC can inspect work done and know which workers did what in case of remedial action required, or potentially for bonus payments to be made.

The Quality module in ABCgrower is highly flexible, allowing organisations to do quality assessments on winter work to measure and help manage the quality of work done, and identify tree or plant issues.

Winter work presents other challenges, not least of which is weather dependency. ABCgrower is designed to capture what is happening, when it happens, without the extra admin of having to edit pre-entered information as schedules shuffle constantly.

Off-season work is crucial but requires skilled labor, careful supervision, and a balance between quality and quantity within the bounds of compliance. It’s quieter than harvest, but definitely not “quiet” and digital tools can be used to enhance efficiency year-round.

The best way to managing costs and incentivising staff

Picking grapes

Managing harvest labour costs: Comparing piece rates, hourly wages, and bonuses

The introduction of a minimum wage floor for horticultural workers in Australia in 2022 saw a seismic shift away from paying piece rate toward hourly wages. It wasn’t unusual to hear cries of “piece rate is dead” or even “piece rate is illegal”. With labour costs continuing to rise, we examine what’s happening a few years on.

Growers are typically using one (or more!) of three pay methods: piece rate, hourly wages, or hourly wages plus bonuses. Below, we outline the advantages and challenges of each method.

Piece rate

Workers are paid based on how much they pick, e.g. by bin, tray, or kilogram. Piece rate is also applicable to non-harvest activities such as planting, pruning and thinning.

Pros
  • Incentivises productivity: Faster workers can earn higher wages. Competition between workers can increase productivity.
  • Efficient for long harvest shifts: Helps manage labour costs during peak yield periods.
  • Attracts skilled workers: Experienced workers who can work quickly prefer piece rates.
  • Faster harvest: Potential for higher earnings as top workers can earn well above hourly minimums. Produce gets to market at the optimum time.
Cons
  • Quality concerns: Workers may rush, leading to damaged or improperly picked produce.
  • Minimum wage liability: Workers who pick slowly may earn below minimum wage and require top-up payments. Workers can be disincentivised to perform when they achieve minimum wage regardless of performance.
  • Potential for worker disputes: Competition can create tension among workers.
  • Limited application: Cannot have more than one worker picking into each container (applies in Australia).
  • Administrative complexity: Requires careful record-keeping and calculations to ensure minimum wage compliance.

Hourly pay

Workers are paid a set wage per hour, regardless of how much produce they pick.

Pros
  • Worker security: Provides stable, predictable income.
  • Quality focus: Workers may pay more attention to careful picking rather than speed.
  • Reduced conflict: Less competition between workers over workloads.
Cons
  • Reduced incentive: Workers may work more slowly without a direct financial reason to pick faster.
  • Higher cost for low productivity: Growers pay the same rate for efficient and less efficient workers.
  • Potential dissatisfaction among top performers: High-performing workers may earn less than under piece rates.

  • Administrative complexity: Requires careful tracking and calculations to ensure overtime compliance.

Hourly plus bonus

Workers receive a guaranteed hourly wage plus bonuses for exceeding certain productivity targets.

Pros
  • Balanced motivation: Provides financial stability while still rewarding higher productivity.
  • Encourages quality: Bonuses can be tied to both quantity and quality standards.
  • Worker retention: May help attract and retain skilled workers looking for both security and performance rewards.
  • Compliance friendly: Helps ensure workers earn at least the minimum hourly wage.
Cons
  • Potential confusion: Workers may find bonus rules difficult to understand.
  • Still higher costs: Growers may face higher overall wage bills if many workers qualify for bonuses.
  • Difficult in low-yield seasons: Bonuses may be hard to fund if produce volumes are low.
  • Complex administration: Requires careful record-keeping to track hours, overtime requirements and bonus eligibility.

Managing complexity with software

Each pay method has pros and cons for both growers and workers. The administrative burden is significant across all three pay methods. Many growers now turn to farm workforce management software to simplify this process. How does software help?

  • Automated tracking: Records individual picking data and links it to worker hours.
  • Built-in compliance checks: Alerts when piece rate earnings fall below minimum wage, so top-ups can be made automatically. Alerts to when overtime payments are required for workers paid hourly.
  • Custom bonus rules: Applies consistent logic across all workers, reducing disputes and manual calculation errors.
  • Real-time reporting: Allows supervisors to monitor productivity and quality in real-time.
  • Integrated pay run export: Sends clean, verified data straight to payroll systems and labour hire contractors to reduce admin time and errors.

Software tools like ABCgrower can help growers maintain fairness, stay compliant with the Horticulture Award, and reduce time spent on paperwork — regardless of which pay method they choose.

The Full Bottle: A Citrus Australia Podcast

Sharon speaks at Citrus Australia

Crop Codes

In this episode of The Full Bottle, a Citrus Australia podcast, presenters Sarah C Porter and Rachel Hall are joined by Sharon Chapman, CEO and Founder of ABC Software. Born and raised in New Zealand’s fruit bowl, Hawkes Bay, Sharon shares her story in business and IT – and shows how her company is helping horticulture businesses of all shapes and sizes integrate technology.

🎧 Tune in here: thefullbottle | Linktree

Employers need to implement pay rate changes now

Harvesting lettuce

Australian Horticulture Award Pay Rate Change

The ‘C14 decision’ was “to vary provisions in 47 modern awards which contain a rate of pay at the ‘C14’ rate, or below the ‘C13’ rate, to ensure they apply on a transitional basis only” (Changes to entry-level classifications in modern awards | Fair Work Commission). Issued on 19th November 2024, it came into effect on 1st April 2025

What is the C14 rate?

C14, or Level 1, is the lowest pay rate in the Horticulture Award, currently $23.46 per hour for permanent employees and $29.33 per hour for casuals.

What is the C13 rate?

C13, or Level 2 is the second-lowest pay rate in the Horticulture Award. It’s currently $24.10 per hour for permanent employees and $30.13 per hour for casuals, 2.75% higher than the C14/Level 1 rate.

What has changed?

In a nutshell, employees must progress to C13 after 3 months’ industry experience. Employers are to change the pay rate of employees who meet the new criteria.

What does industry think?

Many industry associations, including the Australian Fresh Produce Alliance, AiGroup, National Farmers Federation and Queensland Fruit and Vegetable Growers submitted opposition to the provisional view.

 Their arguments included:

  • Seasonal workers should remain at Level 1 because they are short-term employees and are casuals.
  • The progression to Level 2 should be after three months experience in a particular task.
  • The 3 months should be a number of hours equivalent to 3 months full-time work.
  • The 3 months experience should have been obtained within the 1 to 3 years (submissions varied).
  • The 3 months experience should have been obtained with a particular employer.

All submissions were rejected.

What do employers need to do?

  1. Identify which employees need to change from Level 1 to Level 2 by reviewing their engagement period and previous industry experience, noting that the 3 months is cumulative over horticultural employment and is not dependent on total number of accumulated hours.
  2. Discuss changes with effected employees and provide written notification.
  3. Update pay rates.

How can I manage this?

Easily with ABC.

  • Update the pay rates of all employees that fit the criteria at once in ABCgrower.
  • Additionally, instead of assigning individual hourly rates, you can assign a pay grade to each employee and manage pay rates centrally.
  • When Award rates increase again on July 1st, you’ll be ready—no manual updates needed.

Stop losing sleep over labour – it’s easy with ABC

Cucumber picking

Losing sleep over labour costs?

Labour is the single largest input cost in horticulture, making it an obvious target for cost savings in an industry where profit margins are continually under pressure. However, most in the field will tell you that achieving these savings is far from straightforward.

While there has been some relief from freight and chemical costs that blew out during covid, the cost of labour continues to rise.  It’s a worldwide issue, with the recent Irish Teagasc Horticulture Crop Input Prices report stating “labour cost is the key driver of inflation and outweighs reductions in other input categories including energy”.  For some in New Zealand, the cost as a percentage of business costs has doubled in recent years (ref. Submission on Minimum Wage Review 2022 – Horticulture New Zealand).

The NZ report concludes “increasing productivity is the only sustainable means of absorbing extra costs but increasing wages does not of itself increase worker productivity, i.e. the rate at which food crops are picked and processed”.

Automation

While robotics and mechanical automation become more common place, it remains that “growers are currently using more labour to do the same job than a decade ago” (ref. Level Up Hort Season 2023 Nation Vegetable and Onion Benchmark report). Legislative changes in Australia mean it “It’s also taking more labour to do the same job than it was five to 10 years ago” according to the Level Up report.

The return on investment of mechanical automation is tangible, however the capital outlay is often significant. Digital automation comes at much lower price point than mechanical automation. Digital automation puts the power to reduce labour costs in the hands of growers. Some organisations using ABC Software’s worker management software, ABCgrower, are reporting reductions in labour costs of 30%.

Worker management

ABCgrower is a software solution to capture workers time and task digitally. It improves accuracy and reduces admin for record-keeping tasks that are legislated requirements, such as worker time and task. The software automates calculations, for example overtime liability in Australia. It takes the recorded information and reports it back in a number of reports so growers can see the productivity of each workers and their work crews and how much it is costing to harvest or maintain a block. This allows growers to make informed decisions, and this is where the greatest labour savings are made. For example, which workers need additional training? Who are my best performers and are candidates for upskilling? Should I harvest this block tomorrow, or allocate labour elsewhere?

A digital solution builds trust. Robust processes mean less opportunity for workers to cut corners, and more transparency means they have confidence they are being paid correctly and fairly. Digital solutions offer options for incentives, for example paying harvest hourly with a bonus for more containers picked.

Digital automation

A digital solution builds trust. Robust processes mean less opportunity for workers to cut corners, and more transparency means they have confidence they are being paid correctly and fairly. Digital solutions offer options for incentives, for example paying harvest hourly with a bonus for more containers picked.

You might not think of software solutions when you think of automation, however digital automation is an important facet, and one with lower price point, fast ROI, and significant potential gains. Software solutions such as ABCgrower put the power to reduce labour costs in your hands.

Here’s how to find the best software for your business

Computer desk

Which software solution is best? The differences between in-house, on-premise, and SaaS.

There are many factors to consider when choosing a software solution, and while you might have a specific problem to solve, or want to increase efficiency in your business, you may not have thought about how software is delivered, and which option is the best fit.

In-house software solutions are developed and maintained from within your organisation by your own employees, or by a contracted software company. An on-premise solution is bought from a software company and installed on your premises. It is maintained in-house, or in conjunction with the provider and/or a third-party IT company. A Software-as-a-Service (SaaS) solution is on-cloud software, where the software provider hosts the software and makes it available to you over the internet.

Cost

In-house software comes at a high cost – there is the initial development, hardware and infrastructure costs, and on-going maintenance. This often means having an employee or team dedicated to keeping the software running. Larger corporates often consider an in-house solution because they have the in-house resources. This doesn’t guarantee the best solution as the team already have many demands on their time, and the cost and time to develop and implement a solution can be higher than going to a specialist provider.

With on-premise solutions you have your own version of the software, which must be maintained. If this is done by the product provider you benefit not only from their expertise, but an economy of scale as they will have a number of customers with a similar product.

The economy of scale is greater again with a SaaS solution. The provider is maintaining one product that is used by many customers. SaaS solutions are usually subscription-based, and you pay for what you use, by features or volume. For example, on-farm worker management software providers charge by number of users, number of hectares, or number of workers. ABCgrower is charged by the number of workers actively working each week so you pay less in the off-season. ABCgrower also has add-on modules so you only pay for what is useful to your business.

For comparison, a berry grower considering ABCgrower found it to be fit for purpose and were quoted AUD $5,000 annually. They had previously considered commissioning a bespoke solution as they had not found a suitable off-the-shelf solution. They were quoted over $100,000 for the initial development. Further, it offered no additional returns.

Customisation

In-house software is made-to-measure and is developed to your exact requirements. In this sense it offers the most flexibility and you get what you pay for.

On-premise software can still be customisable as you get your own version of the software. For example, ABCpacker has a number of base modules which are then configured according to your packhouse processes and produce types.

With a SaaS product, the same solution is available to all clients who subscribe to it, so it is the least flexible. However, SaaS products can have different modules and features available, and the level of flexibility is product dependent. For example, there are numerous ways to record your inventory in ABCgrower, as it caters to the needs of many categories from apples, berries and cherries, to veges.

Support and maintenance

All software requires on-going support and maintenance. In-house software incurs the greatest cost, for example a medium-large packhouse will require a team of two to three employees.

An on-premise solution that includes a service-level agreement (SLA) with the software provider (like ABC Software offers with ABCpacker), is a robust, more cost-effective solution. The provider is the expert in their software.

With a SaaS solution, the provider is responsible for system operation and maintenance. You should only need basic computer skills to operate the software.

Data security, backup, and storage

If you have in-house software, you are responsible for data security, backup and storage. This is further cost consideration and requires experience and expertise. With on-premise software you do have some responsibilities, however your provider may offer services to assist. For SaaS products, the responsibility is minimal, for example not sharing passwords. With SaaS, it the responsibility of the provider to keep their clients’ system and data safe and secure.

Pros and cons of in-house software

You have full control over the software, hardware and data, which is both an advantage and disadvantage. Having exactly what you want comes at a very high cost and you do not benefit from the wider experience of an industry provider.

You have control over your own security, again an advantage and disadvantage in that you can set your own standards, but you are responsible for maintaining them.

It is often believed that the high up-front costs of inhouse software is more cost-effective for large businesses in the long-term. However, ABC Software are often approached by corporates who had in-house software that is now past its use by, or who were looking at developing their own software but know this will take a matter of years. A purchased solution can be up and running in a matter of weeks.

Pros and cons of on-premise software

A benefit of both in-house and on-premise solutions is that there isn’t necessarily dependency on the internet. This was traditionally a factor with remote packhouses, however it is changing with connection becoming more widely available. The downside of solutions that are not hosted on the internet is that you have limited remote access.

ABC Software’s ABCpacker is delivered via an on-premise solution. It allows the customisation organisations require to tailor a solution to their requirements and is not reliant on internet connectivity. It is imperative packhouses can run continuously and ABC Software offer 24/7 support for their solutions. They have a team available, rather than the responsibility lying on the shoulders of one or two employees (and what happens if that person leaves?).

An on-premise solution offers customisation at significantly less cost than an in-house solution. This is however limited to tailoring what the provider offers, rather than a bespoke in-house solution.

Pros and cons of SaaS software

SaaS software has much lower upfront costs. SaaS software is often scalable for growing businesses and should allow you to start simple and add modules as you require them.

Customisation is not available with a SaaS solution. However, a product like ABCgrower offers flexibility through various ways of collecting and visualising information, as well as allowing clients control over how they set up their system. ABC Software also continue to enhance their SaaS products in response to client feedback, however modifications cannot change the way the product is being used by other organisations.

Because SaaS software is delivered via the internet you can access your account from anywhere. The flipside is that you always need an internet connection. Being horticulture specialists, ABC Software is aware of the connectivity limits on a farm and have an off-line app where data can be recorded digitally and uploaded to the website when in range.

With SaaS software the provider is responsible for maintenance, updates, backup and data security. This can be a time-consuming and costly aspect of in-house software.

In conclusion

The initial outlay for an in-house solution is usually prohibitively expensive, and the on-going overheads are significant. An on-premise solution is a good option where you have specialised requirements that don’t fit an out-of-the box offering, and where connectively is poor or unreliable. This is why ABC Software offers ABCpacker as an on-premise solution.

A SaaS solution is cost-effective and low maintenance. SaaS is often simpler with limited options and less flexibility, however not necessarily so. This can also be beneficial where you have compliance requirements as the software will have been designed to meet those requirements, for example as is the case with ABCspray.

Regardless of which type of software you choose it should solve a problem, for example remove a lot of manual processing, or offer you benefits, like streamlining your operation. You now understand the types of software solutions and the differences between them, to help you on your software journey.

How to explain the Award Pay Rates for Horticulture – part 2

Horticulture Award rates explained - part 2

In part 1, I talked about workers under the Horticulture Award who are paid hourly. Here, I’ll turn the attention to piece rates. This is where the worker is paid for each piece they worked on e.g. number of crates picked, or trees pruned. We often ask growers and packers if they pay piece rate and are met with “no, it’s illegal”. Since the minimum wage floor was introduced in 2022, if you don’t record time and task adequately then you can’t pay piece rates and remain within the rules, but it’s definitely still doable. That said, you’d be game to try without good software tools to help. Read on for the award interpretation for pieceworkers.

Casual workers

As I did for hourly pay, I’ll use Level 1 adult rates as an example. Let’s consider casual workers first, as most piece workers are seasonal and/or contractors. A pieceworkers pay is calculated by number of pieces multiplied by the piece rate. But what about the minimum hourly rate?

Indeed. You need to know how many hours a pieceworker worked in a day. Then you can work out the minimum you need to pay for the day by multiplying the number of hours by the worker’s minimum required rate for the day. Next, you need to check that what they earned on piece rate is at least as much as what they would earn on the minimum hourly rate. If there is a shortfall, you need to pay a ‘top-up’.

For example, Cyril worked for 7.5 hours today. His piecework record says he will be paid $4.50 per bag of avocados he picks. It also says his minimum rate of pay is $29.33 per hour. Today he picked 46 bags, so his earned hourly rate was $4.50 x 46 = $207. The minimum wage guarantee means he must earn at least $219.98 ($29.33 x 7.5 hours = $219.98). He must receive a top-up payment of $12.98 ($219.98 – $207 = $12.98).

If Carlos had filled enough bags that his earned hourly rate was greater than $219.98 for the day, he gets the higher amount. You don’t want to be calculating this manually for every worker every day. Strap in, because there’s more!

Competent workers

The legislation states that Employers have to set a piece rate at an amount so that a pieceworker, working at the ‘average productivity of a pieceworker competent at the piecework task’, will earn at least 15% more per hour than the minimum hourly rate for the pieceworker’s classification level. So that’s $33.73 for level 1 casuals ($29.33 x 1.15 = $33.73 as the 15% calculation is done on top of the casual loading). Say what?

Firstly, what does it means to be competent at the piecework task? That is a pieceworker who has at least 76 hours’ experience performing the task. So, you’ll need to keep track of who is classed as competent.

Next you need to work out the average productivity of a pieceworker competent at the piecework task. Exhausted yet? You will be if you don’t have software that can do this for you with a few clicks. ABCgrower’s Competent Worker Analysis report will calculate all this for you. It will show you who is liable for a top up to minimum wage, and who should be earning at least 15% more, and whether they are or not.

Furthermore, you can use the report to rank workers by productivity to see where you need to take action. You can also get pretty savvy by using the information at hand to fine tune future piece rates. No wonder horticulturists think piece rate is illegal! It’s not illegal but it’s definitely complicated.

Permanent workers

The same rules apply if you pay permanent workers piece rate. They’re just not subject to the casual loading.

Mixed rates

Don’t worry, this isn’t another type of rate, but it’s worth mentioning that you can pay a mixture of piece rates and hourly rates. For example, you pay pruning by piece and training by the hour. Or you pay picking by the hour at the start of the season when the produce is sparse, and by the piece during the peak of harvest. Does it add to the complexity? Yes and no. Not when you’ve got the right tools to take care of the calculations.

At ABC Software, we have clients who only pay piece rate, others who only pay hourly, and others who do a mixture of both. By entering their records directly into ABCgrower’s website or off-line app, smart growers use their own information to find the best solution for their business.

How to explain the Award Pay Rates for Horticulture – part 1

Blueberry picking

Horticulture Award rates explained - part 1

As providers of award interpretation software, we’re often asked questions about pay calculations – and these questions often come from organisations already doing the right thing…or at least trying to do the right thing – it’s complicated! Employees of growers and packers fall under the Horticulture Award. Here, I’ll talk about work that is paid hourly.

Permanent workers

I’ll use the level 1 adult rates as an example throughout. For permanent workers – that’s full-time and part-time employees, the minimum hourly rate is $23.46. This is the rate for ordinary hours. Time and a half is $23.46 x 1.5 = $35.19, and double time is $23.46 x 2 = $46.92. So far, so good.

But how do you know when to apply which rate? First you need to record the start and finish times of your workers and calculate the hours worked. Then you need to know the rules, and apply them to your records. A laborious task which can be difficult to get right without tools to help.

When you record worker time and task in a program like ABCgrower it will do the calculations for you. For example, it will check that the ordinary hours of work for your permanent employees have not exceeded 152 hours over a four-week period. For a worker with hours in excess you assign those hours as overtime, as required by the award.

Bucket of blueberries

Allowances

What if some of your workers are entitled to a first aid or leading hand allowance? These allowances are an extra amount per hour. In ABCgrower, you simply add then to a worker’s minimum hourly rate setting, e.g. First aid allowance = $23.46 + $0.32 = $23.78, and everything will be calculated correctly from there.

Casual workers

This is where it gets trickier. Most are aware the hourly rate is $29.33 (as of 1st July 2024). This is made up of the minimum hourly rate of $23.46 plus 25% casual loading i.e. $23.46 x 1.25 = $29.33.

The ‘half’ part of time and a half, is half the base rate i.e. $23.46 x 0.5. This is added to the casual rate, so all up it’s ($23.46 x 1.25) + ($23.46 x 0.5) = $41.06. Similarly with double time, it’s ($23.46 x 1.25) + ($23.46 x 1) = $52.79.

Workers in ABCgrower are set as casual or permanent, and the rules are applied accordingly. For example, the ordinary hours of work for casual employees other than shift workers will not exceed 304 ordinary hours over an eight-week period.

Allowances are managed in the same way for casuals as they are for permanents, as the casual loading is applied to the allowances also.

Managing worker’s pay rates

Correct rates are one thing, but how do you manage the various rates of all your workers? Without the right tools, it’s getting even more complicated. ABCgrower has several ways to manage this with ease, including setting and applying pay grades. You can set up pay grades for the various award rates, and set the appropriate grade for each worker. When the rates increase, as they invariably do each year, set the new rates and they are automatically applied to the workers.

If you pay more than the minimum required rate, the system will calculate overtime rates at your rate, or at the minimum rate, as is your preference.

So, while the rules and regulations are complicated, being compliant doesn’t have to be, so long as you have the right tools. Look out for part 2 where I look at paying piece rate (spoiler alert, it is still legal!).