Wages board abolition is to be welcomed
On July 22, Defra announced a number of reforms, including the abolition of the Agricultural Wages Board for England and Wales.
There are three Agricultural Wages Boards – for England and Wales, for Scotland, and for Northern Ireland. These are the only three boards remaining out of more than 66 wages councils that once represented workers in a multitude of industry sectors including cutlery, paperbooks, hair, brush and broom, boot and floor polish, pin, hook and iron map fasteners, sugar, confectionery and food preserving... and coffin furniture.
Is this abolition, therefore, long overdue? All other wages councils were abolished altogether in 1993. The effect of the abolition means that agricultural workers will now be brought into the scope of the national minimum wage legislation, instead of having their own special rules for minimum wages, sick pay, holiday, accommodation and other remuneration arrangements.
The formalities for the abolition are not quite complete, however, as the Government still has to consult with the Welsh Assembly to agree on the arrangements.
The question remains whether this abolition will in fact be a real boon for farming and farming businesses, farm diversification, nurseries and all other agricultural projects that are bound to pay all of their workers in accordance with the complex and annually updated Agricultural Wages Orders.
Certainly, with the influx of agricultural workers from Europe and around the world over the last few years, many farming and farming-related businesses have encountered difficulties in interpreting the Wages Order, in particular the lack of clarity in how to apply the correct rates to the correct standard of worker. This has resulted in substantial and unforeseen wages payments having to be made to workers, sometimes several months after those workers have left their employment.
For many years, the NFU has taken a view that the Agricultural Wages Board no longer had a place in the industry. NFU President Peter Kendall said: "The NFU has said for many years that the Agricultural Wages Board was an industrial relations relic that exists in no other sector of industry. The Secretary of State has quite rightly pointed out that the 1948 Act is outdated and does not have the best interest of farmers or workers at heart."
Therefore, the decision to abolish the Agricultural Wages Board should come as a welcome relief for many farmers and growers who have struggled with the complexity of the Wages Orders. More importantly, its abolition should put farmers on a more equal footing with other employers.
There is certainly no doubt that the general view of farmers is that the Agricultural Wages Board has adversely affected the competitiveness of the farming sector. So its removal should allow all farmers and growers to play a much greater part in global food security and be much more competitive with other European and, indeed, worldwide food suppliers.
Will, however, its abolition mean hard times for agricultural workers? Will the abolition result in a reduction of the national agricultural workforce?
On balance this seems unlikely, as agricultural workers will still be protected – but now instead of by means of their own individual Agricultural Wages Board this will be in accordance with the National Minimum Wage legislation.
Every year the national minimum wage figures are increased, and there is a view that the sick pay arrangements and holiday arrangements for agricultural workers are excessive and cause too great an expense to the farmer and grower.
So the removal of those additional benefits, incorporated into the Agricultural Wages Orders, should enable farmers and growers to become more competitive with other industries.
It should not be forgotten that we also have very strong employment laws in this country, enforced through our Employment Tribunal system.
The NFU also works closely with all their members to ensure that farmers and growers understand their employment responsibilities and offer guidance on wages generally to their workers.
Our conclusion at this time, therefore, without yet knowing the process by which the Board will be abolished and whether that will be in stages or whether certain elements may remain, is that generally this abolition is a positive step forward for the UK farming industry.
Tim Russ leads the agricultural team at Westcountry lawyers Clarke Willmott














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