Rural pay deals 10% up on urban

A dairy worker in an Otago shed in 2003. Several sectors in the dairy industry have taken pay...
A dairy worker in an Otago shed in 2003. Several sectors in the dairy industry have taken pay cuts, but overall last year the rural sector offered better wage and work packages than urban. Photo by Stephen Jaquiery.
Farm workers' average overall wages and benefit packages are about 10% higher than annual urban wages, but Federated Farmers is cautioning farm debt may temper rural wage growth "in the foreseeable future".

The 2010 Federated Farmers and Rabobank farm employee remuneration report found farm workers' "total package value", which includes food and accommodation subsidies, was $48,388 a year, $5227 more than the average personal (mean) annual wage income.

While talking up the benefits of farm packages against urban wages, Federated Farmers national president Don Nicolson noted the overall rural package for 2009 recorded only 33% of the growth of the previous August-October reporting period in 2008.

"We've also seen a role reversal over the 2009 survey, as sheep and beef employees got increases twice the average recorded for their dairy counterparts," he said.

Federated Farmers felt "policy uncertainty and a focus on debt reduction by employers would temper wage and salary growth for the foreseeable future", Mr Nicolson said.

"That said, agriculture provided a clear career path, with senior positions on packages comparable to the professions," he said of managerial positions paying more than $80,000.

Nationally, North Island dairy farm assistants and dairy assistant herd managers were "slightly" better paid than South Island counterparts, but South Island dairy farm managers and operations managers were "significantly" higher paid than northern counterparts, Mr Nicolson said, when contacted, yesterday.

"This is likely due to [more] expansion, larger herds and job demand in what is a tight [labour] market," he said.

He highlighted it was workers in the arable sector who again recorded the highest average wage and salary growth, of 8.1%, with a 10.3% increase in their overall package, largely on the growth associated with supplying dairy farms and the emerging bio-fuel sector.

However, there was a fall in the level of remuneration being paid to casual farm labourers and some skilled casual staff, while unskilled farm labourers saw their hourly rates fall by almost a dollar.

Rabobank New Zealand general manager Ben Russell said the international economic crisis had an impact on rural wages and salaries.

"This arguably reflects a sharp pruning of farm operating costs, with employers moving resources to retain skilled permanent staff at the expense of casual staff," Mr Russell concluded.

Mr Nicolson said agricultural wages and salaries had kept in touch with the rate of inflation, which was about 2% during the period, but the overall rural package did increase at twice that rate.

Domestic stimulus "had done little for exporters though.

"The opposite in fact, as we've faced a high dollar".

    At a glance
Agricultural "total package value" gains August-October 2009, compared to 2008.
Arable sector - up 8.1%
Sheep and beef - up 4.4%
Dairying - up 2.1%
Farming average salary, $43,294 - up 3.3%
Farming total package value, $48,388 - up 4.4%
Farming total package value for most senior positions:Average $80,265 (dairy), $72,099 (arable), $63,613 (sheep/beef)
Source: Federated Farmers

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