Work arrangements in the Australian meat processing industry
Labour market research report
This report was released on 9 October 1998. Four appendices (C, D, E and F), which were not released as part of the original report, were added to the web version of the report on 11 December 2001.
This report examines selected work arrangements and assesses their implications for the performance of meat processing enterprises. The effects on employees are also considered, and the scope to achieve further necessary change is analysed. The study has drawn on information obtained from detailed discussions with industry representatives (including several meat processors), as well as previous industry studies.
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Work Arrangements in the Australian Meat Processing Industry (PDF 1.1 MB)The Commission today released Work Arrangements in the Australian Meat Processing Industry — the latest of its series of research reports requested by the Government on work arrangements in key industry sectors.
Gary Banks, the Productivity Commission's Chairman, said 'the main message in the report is that work arrangements in meat processing have been changing in recent years from the traditional, highly prescriptive arrangements that were holding back the industry's performance'.
Increased competitive pressure has led to some rationalisation in the industry and, with a more facilitative regulatory environment, has brought changes to work arrangements as firms strive to improve performance. The report finds that while changes have been concentrated among large, export oriented plants, changes have also occurred throughout the industry.
The most important change in work arrangements has been a move away from the highly prescriptive tally systems in industry awards, which involve complex formulae for allocating workers and remunerating them, based on the number of head processed. Increasingly, larger firms are basing remuneration on time worked and/or modified incentive payment systems with, in some cases, payment based on factors such as yield and quality. However, many firms, particularly smaller ones, still operate tally systems that continue to constrain performance.
Other major work arrangements examined in the report include: penalties and allowances; ordinary hours; seniority; and training. The Commission found some improvements in all these areas.
Firms have benefited through improved productivity, and in some cases an improved workplace culture with less disputation. Benefits to workers have included greater security of income, higher income overall, and improved training and career structures.
Nevertheless, the report emphasised that further improvements will be needed if the industry is to meet the challenge of increasingly competitive international markets.
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