Winter 2024— McCrystal Ag Services recently completed a highly successful macadamia pruning project at Nutbush Farms under the leadership of Matthew Williams, Business Manager of McCrystal Agricultural Services, and Michael McMahon, Director of Nutbush Farms. The project achieved a remarkable 56.5% increase in productivity, driven by close monitoring of productivity data and the negotiation of a contract rate per tree.
The pruning operation was meticulously planned, with McCrystal Ag Services working closely with Michael and his team to ensure all 12 labourers were properly inducted and trained. Once the team demonstrated competence in the task, the shift to a piece rate system—based on productivity data collected—further boosted performance and earnings, with workers able to earn between 15% and 30% above the award hourly rate.
Many growers are hesitant to utilise the piece rate award mechanism since the multiple changes to piece rate implemented by the Fair Work Commission in April 2022. The outcome of this collaboration shows that piece rate remains a valuable tool to manage and promote productivity, when used compliantly and with the right monitoring tools.
Michael McMahon praised the collaboration, stating, “We engaged McCrystal Ag to supply us with 12 labourers to selectively prune our macadamias in 2024. Matt from McCrystal Ag took the time to understand our needs and requirements and was always available if we needed him. We ran the first week or so paying an hourly rate for the labour. In consultation with the pruners and Matt, we trialled paying a piece rate and found that productivity improved significantly. The pruners worked harder and made more money. We had one of our regular staff supervise the pruners to ensure the job was completed to the standard required. We were happy with the job the pruners did and they got the job done on time and on budget. We will be looking to engage McCrystal Ag again for contract pruning in 2025.”
The outcome of this project provided a threefold advantage:
- Increased Earnings for Workers: The labourers were able to earn between 15% and 30% above the award hourly rate, thanks to compliant piece rate agreements and ongoing performance monitoring.
- Efficient Project Completion: McCrystal Ag Services completed the pruning ahead of schedule, enabling the workers to transition to new opportunities sooner, increasing their remittances to support their families and communities.
- Exceptional Results for the Grower: Michael McMahon benefited from a quality pruning job that was completed on time and on budget.
McCrystal Ag Services utilises a proprietary digital payroll management system with real-time piece rate productivity monitoring features, enabling efficient management of contract or piece work. To learn how McAg can help boost performance and productivity in your business, contact Matthew Williams via email: matt@mccrystalag.com.au, or mobile: 0437 283 943.
