10/06/05 Minimum wage and the fruit industry, Pt.2

Realistically, the fruit growing regions of Oregon and Washington should not expect relief from annual increases in the state minimum wage. As of January First, Oregon and Washington's minimum wage rates will be among the highest in the nation. Previous attempts by agriculture groups in general, and the tree fruit industry specifically, to use legislation to slow down if not halt minimum wage increases has so far been unsuccessful. So where can growers go to get some sort of relief from the accruing costs of minimum wage? Jim Hazen of the Washington State Horticultural Association says one avenue might just be in the area of technologies, especially those in the realm of cost efficiencies. HAZEN: Producers and packers are going to move fast and hard into areas of mechanization. If they can buy equipment and reduce their dependence on labor, they will do that. And the upfront costs of that are very expensive, but in the long run, that's going to save them money. Now the hope of Hazen and other fruit industry insiders in mechanization comes with the understanding that the heavily labor intensive industry will retain many of these aspects. HAZEN: They're not going to be able to mechanize pruning, and thinning, and harvesting, and any type of labor saving device you're going to see I think our industry invest into that type of equipment.