Some industry-watchers say the greenhouse business may be reaching a plateau. After all, the USDA's annual calculation of wholesale value for the industry showed only a 1-percent gain for 1998. Compare that with gains of 5 to 7 percent in previous years.
Likewise, the employment picture for greenhouse operations indicates a leveling-off, but not necessarily a decline. Our fourth annual GMPRO Wages and Benefits Survey didn't reveal the wide swings in employment levels and pay that previous years have seen. But that is not to say that greenhouse operations have an easy time competing for workers in a tight labor pool.
For this annual survey we contacted greenhouse firms of all sizes across the country, representing a cross-section of crops. There were 230 respondents who shared information on employment levels, pay rates and benefits. The charts (listed in the left-hand column of this page) allow you to see comparisons between our 1998 and 1997 surveys and the data for this year.
Employment up slightly
The average number of year-round unskilled laborers and growers employed in 1999 was up slightly, as was the number of employees in other labor categories. The increases in numbers of employees were not as high as we have seen in previous years.
Hourly rates showed mixed results when compared with the previous year. Average hourly rate for unskilled labor ($5.75 in 1999) was down from $7.04 in 1998. Average hourly rates were down slightly for growers, and decreased further for production managers and maintenance employees. Grower managers and production managers showed increases in their average hourly rates this year.
Year-round workers put in anywhere from 38 hours per week (maintenance employees) to 44 per week (growers and general managers), earning significantly higher rates for working beyond 40 hours in a week. For example, a grower earning a regular wage of $7.25 per hour increased his average rate to more than $13.50 per hour beyond 40.
Labor unions, which are more popular in the field-agriculture industry but have never really taken hold in the greenhouse industry, represented 1 percent or less of the workers this year.
Benefits increase
Employee benefits for greenhouse workers continue to lag behind the general U.S. labor field. This perhaps can be attributed to the greenhouse industry's roots as family-owned businesses, where extensive employee benefits are not the norm. However, as the national labor market tightens, many progressive greenhouse companies are offering their employees enhanced benefits packages as a way to entice them to remain on the payroll.
Looking at employee benefits, we can draw these conclusions:
* Paid vacation days ranged from five to eight per year for the various classes of greenhouse workers.
* Paid sick time is not a high priority for our industry. Workers earn only one or two paid days per year.
* Insurance coverage -- both life insurance and hospitalization -- is one of the most prevalent benefits offered to employees in our industry. For example, it's provided to 16 percent of unskilled laborers and 20 percent of general managers.
* Paid pension plans are also generally on the increase, according to survey respondents. For example, 18 percent of growers earned this benefit in 1999, compared to 14 percent last year.
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