December 30, 2016
CapitalPress.com
7
Idaho’s ag industry wage
increases outpace national rate
By SEAN ELLIS
Capital Press
BOISE — The average
private sector wage in Idaho
is increasing at twice the na-
tional rate and the state’s av-
erage farm industry wage is
growing even faster.
The state’s average private
sector weekly wage grew by
$30 to $743, a 4.2 percent
gain, between the second
quarters of 2015 and 2016,
according to the Idaho De-
partment of Labor.
That’s twice the national
rate and fourth fastest in the
nation.
During that same period,
the average weekly wage for
the state’s agricultural sector
grew by 5.1 percent, or $30,
to $622. That sector includes
25,217 jobs involved in crop
and animal production as well
as forestry.
Going back to the second
quarter of 2013, the average
weekly private wage in Idaho
has grown 9.4 percent while
the average weekly wage for
Sean Ellis/Capital Press File
Dry beans are harvested in a field near Nampa, Idaho, in Septem-
ber. Idaho’s overall private sector weekly wage is increasing at
twice the national rate and the state’s average ag industry wage is
growing even faster.
agriculture has grown 12.9
percent.
IDL
economist
Bob
Uhlenkott said the overall
state wage increase is a result
of more pressure on wages
resulting from a tight labor
market.
”Now it appears we’re
starting to really see that de-
mand for skilled talent is put-
ting upper pressure on wag-
es,” he said. “You’re going
to have to pay your employ-
ees more to keep them at this
point.”
Idaho’s
unemployment
rate was 3.8 percent in No-
vember and the state’s pop-
ulation grew by 1.8 percent
between mid-2015 and mid-
2016, the third highest per-
centage increase in the nation.
The wage report is good
news for workers in Idaho
but not so much for the state’s
farming industry, which is
seeing wages rise at a time
when most farm commodities
have decreased significantly.
“It’s going to put more
cost pressure on farmers at
a time when prices are not
that good,” said University
of Idaho Agricultural Econo-
mist Garth Taylor. “With the
commodity price outlook, it
is going to put (farmers) in a
further squeeze.”
Idaho farmers are already
having to pay more to attract
and keep workers, said Merid-
ian farmer Richard Durrant.
He had two nephews leave
for better-paying agribusiness
jobs in the past year and is
having to pay $15 an hour for
general labor, up $3-4 an hour
from what he was paying a
few years ago.
Farms’ lawsuit against labor regulators revived
By MATEUSZ PERKOWSKI
Capital Press
A lawsuit filed by two
farms against California labor
regulators has been revived by
a federal appeals court, which
ruled it’s plausible the compa-
nies were unfairly targeted.
The dispute relates to law
passed by California lawmak-
ers in 2015 that provided some
— but not all — farms with
safe harbor against certain la-
bor lawsuits.
Farms in the state were
facing possible class action
litigation after court rulings
that piece-rate workers, such
as those paid based on harvest
amounts, must be paid the min-
imum wage even for breaks,
meals and other “non-produc-
tive” periods.
Before those rulings, farm-
ers simply ensured that the to-
tal amount paid to piece-rate
workers for a period of time
exceeded the amount they’d
be paid by the minimum wage.
In response, California law-
makers passed Assembly Bill
1513, which shields growers
from liability as long as they
correct “minimum wage de-
ficiencies” that occurred be-
tween mid-2012 and the end
of 2015.
However, several provi-
sions effectively excluded
three farms, Fowler Packing
Co., Gerawan Farming and
Delano Farms Co., from the
safe harbor law.
Specifically, companies ac-
cused of labor law violations
in lawsuits filed before certain
dates weren’t protected under
AB 1513 — conditions that
only applied to those three op-
erations.
A lawsuit filed by two of
the three farms, Fowler and
Gerawan, alleges that lawmak-
ers created those “carve-out”
provisions to appease the Unit-
ed Farm Workers union and
get the bill passed. The UFW
had lawsuits pending against
the three companies.
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Dan Wheat/Capital Press
Roxanna Galvez packs a tray of Fuji apples at Roche Fruit in Yaki-
ma, Wash., on Nov. 16. The export of Fuji, Red Delicious and other
varieties to Indonesia is expected to increase next year following a
World Trade Organization ruling.
WTO ruling helps
U.S. ag exports
to Indonesia
By DAN WHEAT
Capital Press
YAKIMA, Wash. — Ex-
ports of many U.S. agricul-
tural products, including
Washington apples, may
increase soon because of a
recent ruling by the World
Trade Organization.
The Office of the U.S.
Trade Representative issued
a news release Dec. 22 stat-
ing a WTO panel found in
favor of the U.S. and New
Zealand in 18 claims that
Indonesia has been applying
import restrictions and pro-
hibitions that are inconsis-
tent with WTO rules.
The restrictions cost
about $115 million in U.S.
agricultural exports to In-
donesia in 2015, including
$28 million worth of apples
and more than $29 million
worth of grapes, the USTR
stated.
“This took a long time,
was frustrating, not simple
and (USTR) Ambassador
(Michael) Froman and his
team, to their credit, took it
on and did exemplary work,”
said Mark Powers, executive
vice president of the North-
west Horticultural Council
in Yakima.
Indonesia could appeal
the ruling but if it does the
WTO will decide that within
90 days.
Previous to restrictions
begun in 2012, Indonesia
was a 2.7 million-box-per-
year Washington apple mar-
ket, Powers said.
Since then, it’s 1 million
boxes lower but could grow
that back and expand in the
future with restrictions lift-
ed, he said.
One million, 40-pound
boxes of apples are worth
roughly $20 million.
“We think it has incred-
ible potential. It has a large
population. They enjoy Red
Delicious and other variet-
ies, like higher-value prod-
ucts and don’t have their
own supply,” Powers said.
China, New Zealand,
Chile and other apple export-
ers have also been hindered
by the same restrictions but
will now be out from under
them, making the market
competitive, he said.
Todd Fryhover, president
of the Washington Apple
Commission in Wenatchee,
said Indonesia was a 4 mil-
lion-box market in 1996 and
should easily reach 2.5 mil-
lion to 3 million without the
restrictions. Indonesians like
smaller apples, which helps
Washington exports but the
opportunity will be deter-
mined by Washington’s vari-
etal mix, he said.
Besides apples, grapes,
oranges, potatoes, onions,
shallots, dried fruits and
vegetables, flowers, juic-
es, cattle, beef, poultry and
other animal products have
been harmed, USTR said.
“This major victory is the
fourth WTO win announced
by USTR this year,” Froman
said in the news release.
He noted the Obama ad-
ministration has won all of
its trade enforcement chal-
lenges decided to date and
that Indonesia is the fourth
most populous country in
the world.
U.S. Agriculture Secre-
tary Tom Vilsack called it a
slam dunk and said Indonesia
has maintained an untenable
import licensing program
harming the U.S. since 2012.
He said the findings will dis-
courage Indonesia from sub-
stituting new trade distorting
approaches.
“Today’s announcement
is a win for Washington’s ap-
ple industry and agriculture
community,” said U.S. Rep.
Dave Reichert, R-Wash.
Rep. Rick Larsen, D-Wash.,
also issued a laudatory state-
ment.
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