The ‘C14 decision’ means changes to Hort Award pay rates

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 as easy as 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.

Horticulture Award rates explained – 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.

Horticulture Award rates explained – 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!).

Policy changes welcomed by growers

Picking oranges

RSE policy changes welcomed by growers

Changes to the Recognised Seasonal Employers (RSE) Scheme have been welcomed by New Zealand growers ahead of the upcoming season. The RSE scheme allows the horticulture and viticulture industries to recruit seasonal workers from overseas when there are not enough local workers. Similarly, the Pacific Australia Labour Mobility (PALM) scheme in Australia allows eligible businesses to recruit from the Pacific islands and Timor-Leste.

Changes to the RSE scheme include averaging out the 30-hour minimum weekly work requirement over four weeks. The PALM scheme in Australia has had the same requirement since the beginning of the year. It was due to be changed to 30 hours per week from 1 July 2024. However, the averaging component has been extended for a year. This came on the back of strong opposition from the horticulture sector who require the flexibility to adapt to weather and market conditions.

RSE workers picking berries

These schemes employ upward of 20,000 people in NZ and 34,000 in Australia. New Zealand exports over NZ$2bn of wine per annum. Philip Gregan, CEO of New Zealand Winegrowers says “The scheme has been vital to the growth of the wine industry”.

Employers must keep records to prove compliance with the 30-hour requirement. This is not only of hours worked, but also hours offered that aren’t worked. ABC Software’s on-farm labour and inventory management system ABCgrower, has an “info-only” facility. Time and task are recorded digitally in ABCgrower and the info-only facility means hours not worked are also easily recorded and reported on. Info-only hours are automatically excluded from productivity and block cost reports.

Other changes to the RSE scheme announced last week include lifting the pause on accommodation cost increases and allowing a capped increase to be applied. Also, adjusting the application of the 10% above the minimum wage requirement. NZAPI Chief Executive Karen Morrish says the changes “will go a long way to easing pressures on apple and pear growers. The apple industry is New Zealand’s largest employer of RSE’s”. 

If you’re an employer of RSE or PALM scheme workers, how do you show you’re compliant with the scheme? Click here for more information on how a digital system can help you.

The best way to keep online data safe is simple with ABC

Computer screen with code

Keeping online data safe. Cybersecurity explained in plain English

If you’re considering software for your business, you might be wondering how secure your data will be. If you’re moving away from pen and paper you will have considered the increased accuracy and efficiencies software provides. And permanence too – no lost records, no physical storage and quick access to any of your records. But is it safe?

The majority of ABC Software’s products operate online and data is stored in the cloud. We often hear of the cloud, but what actually is it? The cloud is a term used to describe a remote system that can store and process data. Its storage space and processing power make it more efficient than traditional on-premise hard drive storage. It also offers greater security.

Cloud servers are located in data centres world-wide. For example, ABCgrower data is stored in the Azure Australia geography. Database backups are replicated across other regions. Off-site storage, regular backups and 24/7 suspicious activity monitoring offers greater protection against cyberattacks than other options. Cloud storage means you can access your information on any device with an internet connection and can recover your information if your physical device is lost or damaged.

As with any system, data breaches are possible and in the event of a cloud attack you are relying on how your service provider handles it. The recent fault with an update issued by cybersecurity company CrowdStrike is an example of an infrequent, though significant event. Microsoft estimate that CrowdStrike’s update affected 8.5 million Windows devices. While this is less than one percent of all Windows devices it included the devices of many organisations that run critical services.

It is vital your software  provider has an Incident Response Policy in case of a security breach, and a Business Continuity Plan in case of a disaster. ABC Software’s Business Continuity Plan was well tested in February 2023 when Cyclone Gabrielle hit Hawke’ Bay, causing flooding of the ABC Software offices and left the city without communications for three days and power for seven. The company was able to continue running throughout, without impact to its services and without any data loss or exposure.

There are many and varied steps software companies take to protect their clients data from threats and vulnerabilities. For example, ABC Software’s Inhouse Security Policy includes Role-Based Access Control to restrict users access to information, Zero Trust security which requires users to be authenticated, authorised, and continuously validated before being granted access to data, and Multi-Factor Authentication for accessing sensitive systems.

Ultimately, any system has vulnerabilities to data loss and business interruption, from a paper timesheet in a downpour, loss of internet connectivity in a storm, to a malicious cyberattack. On balance, if you chose a reputable software provider with a multi-faceted security policy, you can rest assured your information is well protected. 

Practical benefits of online QA/QC

Quality control on nectarines

Increase efficiency, reduce errors & stay in touch

You know the value of problem detection and prevention to your business. ABCquality offers a straightforward solution to standardise, record and retrieve your quality records, pen and paper not required!

Reduced errors

Pen and paper means handwriting, and handwriting is not always legible. It also means transcription errors if the information has to be entered into a spreadsheet, a report, or any type of system.

You might be thinking ‘I already use software, I have spreadsheets!’ Spreadsheets might be designed for data but they’re not a particularly good tool for the requirements of checklists and assessments. They are also prone to user error.

A good online Quality system will allow you to set data entry fields as mandatory or optional, to ensure all vital information is collected. Further, it should allow you to determine how that information is input, for example, choosing from a pre-defined list of answers, or entering a date in a consistent format for no ambiguity.

Increased efficiencies

Using a software system also means calculations can be done for you, saving time, and again, reducing the chances of error. A good system should be able to show summary statistics, or calculate whether an assessment has passed or failed based on your pre-set criteria.

An online system should support multiple users working on the same checklist or assessment, without merging or saving issues that even online spreadsheets are susceptible to. A good online system should allow multiple people to be working on the same assessment or checklist at the same time, without having to rely on the previous person to complete their task first. Improve consistency by having ready access to reference photos and allow your team to record photographic evidence of defects.

The earlier an issue is identified the earlier it can be rectified, and a rapid response is vital to avoid costly mistakes that can quickly snowball. An online system should allow you to see information as it’s recorded, which allows a proactive response, rather than a post-production approach.

Integration

Another reason to move your QA/QC requirements to an online system is the advantages of integration. In the packhouse, for example, packing batches, bins and cartons should be able to be fed into your quality system, allowing your team to choose from a list. Be more streamlined, more efficient, with less errors. ABCquality, for example, can be integrated with any system for auto-inputs, like an ERP or manufacturing system.

Access

Using a cloud-based system means your data is stored securely in the cloud. And this means you have immediate access at anytime from anywhere, all that is required is a device with an internet connection. A good system should be user-friendly no matter the device, resizing to your screen, from a desktop to a phone.

A mobile-friendly online system means your team can take the device to what is being assessed, for example a tablet to a bin of produce. The assessment can be viewed from anywhere the moment it is recorded, for example a manager on their laptop.

Storage and retrieval

A significant but often over-looked cost of pen and paper is storage and retrieval of your quality documents. Your paperwork must be kept for a certain period and even with the best filing system this means the need for storage space and organised personnel. Having your data stored in the cloud negates physical storage requirements. Furthermore, the records are always backed up and never get lost.

Lastly, is the accessibility of retrieving information. The memory of trying to find a particular piece of paper to meet an audit or address an issue sends shivers down the spine of many!

Efficient, effective problem detection and prevention is vital to your business. Pen and paper might seem the cheap option, but what is it costing your business? Moving your QA/QC online means less mistakes, consistency of information collected, and faster analysis. It allows a proactive response to issues that do arise, and proof of compliance with ease.

Contact ABC Software to learn more about how ABCquality could add value to your business.

Practical ways to improve packhouse operation

ABCpacker at Tumut Grove packhouse

Horticultural inventory software that improves packhouse operations

Many packhouses are still run via a labyrinth of spreadsheets, often with a liberal sprinkling of handwritten notes. Nothing wrong with that, you might think.

And there’s not until a person with oodles of institutional knowledge leaves. Or, until one blunder creates a catastrophe, or the demands of customers or compliance mean you lose sales. And if that’s not enough to induce a cold sweat, there’s the cost of doing nothing about it. The cost of lack of visibility. The cost of insufficient traceability. The cost of inefficiency.

ABC Software is one provider of horticultural inventory software. Headquartered in Hawkes’ Bay, the fruit bowl of New Zealand, they live and breathe both software and horticulture, not to mention they also enjoy eating the local bounty! With clients across Australasia (and further afield) across more than a dozen produce types, they see firsthand how good produce inventory management can transform operations.

The benefits of fresh produce inventory management

Fresh Produce Group’s Tumut Grove packhouse were not running on spreadsheets when they chose ABC Software as their packhouse software partner, as they had already made the move to a software system a few years prior.

Management Accountant Tom Hamblin says the existing system was “proving hard to effectively reconcile both operationally and fiscally.” Hamblin explains the business “needed a product or system that had traceability through all supply chain areas of our business and one that was simple to use for all internal stakeholders.”

Hamblin hits the nail on the head identifying two key elements for any business evaluating whether to introduce a new system. Fresh produce inventory management is important for food safety and biosecurity compliance. Good inventory management also delivers accuracy and visibility, which in turn allows increased efficiency and therefore profitability.

Fresh Produce Group’s Business Assistant Tayla Cordier says of ABC Software’ packhouse solution ABCpacker, “I can follow exactly where fruit went and the split of each grower’s fruit on a sales order. It makes it much easier to track when jobs are fully invoiced and ready to be paid back.”

How fresh produce inventory management can transform your business

Traceability is a key requirement across all aspects of Fresh Produce Group’s business, and ABCpacker provides the vital links Tumut Grove requires, from bins off the farm through packing batches to cartons sold.

With ABCpacker, Tumut Grove has more accurate stock information and better traceability throughout the packing process. “ABCpacker is beneficial for both Food Safety and Biosecurity compliance,” says Technical Compliance Manager Sally McKay. “ABC packer was particularly helpful during audits to demonstrate full traceability from the block to the final pack” McKay explains.

Reduce your workload with produce inventory management

Ease of use is vital. Manual systems are frustrating and can result in higher staff turnover. The ABBYY COVID-19 Technology Survey identified a quarter of employees wanted to quit their jobs due to bad business processes.

Furthermore, robust efficient systems allow your staff to put their energy into the areas of expertise you hired then for, rather than dealing with the inefficiencies of a manual system like double-handling data and resolving problems caused by not having a “single source of truth”.

Entering information once into a robust software system avoids double-handling (or more!), reduces mistakes from poor handwriting and lost pieces of paper, and allows consistent application of your business rules throughout your packhouse process. One system from ‘produce in’ to ‘produce out’ means increased automation and less admin.

A smarter, more efficient way forward

Engaging a new system takes a committed effort from both the business and the provider. Tumut’s Commercial Director Lloyd Foss acknowledges “the biggest challenges are always change management as generally users always refer back to what was good in the past.”

A packhouse software provider worth their salt understands software and understands horticulture. They must understand your pressures, your sector, your seasonality constraints, your costs, and your challenges. Furthermore, their system must be robust enough and flexible enough to fit your current, and future, circumstances.

ABC Software knows packaging is a significant cost to your business and offers a packaging inventory management module. Transform the way you do business and increase your efficiency with a horticulture inventory management system from ABC.

For more information on the innovative range, get in touch with the team today.

Is Piece Work Really Dead?

Piece rate payment has long been a popular form of remuneration in horticulture. A piece worker’s pay is based on the quantity they pick, prune or pack. Piece workers have the potential to earn much more than they would on an hourly wage. It’s worth every cent to the growers and packers whose livelihood depends on getting produce picked and packed as quickly as possible, over what is often a short harvest period.

How the Horticulture Minimum Wage Has Changed Things

Such was the reaction to the introduction of a horticulture minimum wage guarantee for pieceworkers in Australia in 2022, many believe it is no longer legal to pay piece rates in Australia. The calculations are complicated and the record-keeping requirements considerable, but so long as it is in compliance with the Horticulture Award, it is most definitely still legal.

A minimum wage guarantee for piece work has been required across the ditch in New Zealand for some time, and piece rate payment remains widely used in horticulture. Perhaps Kiwis are more used to it, after all New Zealand was the first country to implement a national minimum wage. ABC Software is headquartered in New Zealand, and we already had tools to accommodate the minimum wage guarantee locally. That’s not to say there weren’t a few long days ensuring we put together a watertight solution to ensure our Aussie friends could meet their obligations!

Complying with the Horticulture Award

So, piece rates are legal, but are they dead? Many growers and packers threw them out believing the cost of minimum wage top up payments and compliance considerations would make them unviable. Good horticulture-specific software such as ABCgrower is essential to make it work. It does the hard yards for you and delivers accurate pay information and audit-ready reproducible reports. Even those that made the rules (I’m looking at you FWO!) recommend using software and not trying to go it alone. 

The Benefits of ABCgrower

One of our growers stuck with piece rates after the introduction of the horticulture minimum wage guarantee, in large part because of having ABCgrower with its tools to manage piece rates already on hand. Such is the strength of belief in the death of these rates in the industry they decided to shift to hourly wages for the second harvest since the legislation changes. Both payment mechanisms fall under the Horticulture Award, and both have their pros and cons. 

With hourly wages comes overtime liability (ABCgrower takes care of these calculations too!). What this grower was left with was a wage bill considerably higher for the harvest paid on hourly rates, than the harvest paid on piece rates. This was due primarily to the overtime bill greatly outweighing the top up bill, as well as the efficiency advantages this form of payment can bring. They are now firmly in favour of the advantages of piece rate! 

Increase Your Efficiency Today

With labour contributing in the region of 70 percent of harvest cost, piece work definitely shouldn’t be thrown out because of the Horticulture Award changes. Piece rates are a tool in an industry where efficiency has become king. Piece work isn’t dead. It’s very much alive and well. 

Find out how ABCgrower can help your business effortlessly comply with the Horticulture Award pay rates in 2024. For more information on any of our software, contact us today and see the difference these programs can make for your business.

“Using ABCgrower for us has benefitted the business in the sense that we can see where our costs are.”
Johnny Milmine, General Manager
Berry Farms NZ