Monday, 16 April 2018

Six Dollar Coffee -- April 2018


It makes a nice change to see a coffee chain in Wellington being excoriated on social media for raising the price of a flat white by ten cents in response to the recent increase in the minimum wage, I’m used to seeing dairy farmers get a kicking for everything from the price of butter to the imagined harsh conditions we subject our employees to.

If anything was going to distract people from a $6 block of butter, it was going to be a $6.10 cup of coffee.

 When I started dairying in 1996 I had no idea what the minimum wage was, Google tells me it was $7, and my first job in the Waikato gave me 2 rostered days off per calendar month. This wasn’t necessarily the same two days every month, sometimes it could be the first weekend and then next month it could be the last: working 40 or 50 days straight was by no mean uncommon.

When the farm owner at the time suggested that getting a full day in lieu was a bit generous as I only worked half a day on the public holiday, I readily agreed. I’d given up my $36,000 job in Wellington to move to the outskirts of Hamilton and start again as a dairy farm assistant and I was happy for the opportunity. I was only paying $40 a week rent for a sprawling 4-bedroom house; this meant that despite the $10,000 cut in salary I was better off financially than when I was in Wellington.

Despite the roster I was also happier and healthier than I had been in years, and in my opinion nothing beats watching your kids grow up in the country.

None of this is to say that these practices should persist today, just that they are part of our very recent history and today’s employers are people like me who came up through those systems.

Helen Kelly used to name and shame dairy farmers on Twitter, she would find an ad on the internet and analyse it; time off, hours worked, hourly rate and quite frankly it was embarrassing. Sometimes she was wrong, but most of the time she was exposing some pretty old fashioned employment ideas like annualised hours and value of accommodation as part of the package.

Times have changed very quickly and poor employment practices amongst farmers are becoming less and less common. I noted the increased minimum wage with interest but knew that no action was required on my part as each of my employees earn well in excess of that, and I am writing this column on my regularly rostered 3-day weekend.

Unlike coffee shops, dairy farmers aren’t in the position to pass the costs of production on to consumers. We have to farm smarter and spend our money where it will have the most impact on our profitability. Over the years we’ve come to realise that a happy, stable work force is money well spent, it’s rarely a place to look to for savings.

As for coffee, nothing can beat 2 teaspoons of Nescafe Classic in a travel mug at 4am in the cowshed.

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