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Scottish Agricultural Wages Board aims
another shot at the feet of
Scottish farming

James Irvine

Teviot Scientific, Cultybraggan Farm, Comrie, Perthshire

Filed 26 Oct 06
©www.land-care.org uk

Throughout the UK legislation has existed since 1999 concerning the National Minimum Wage (NMW). It applies to all jobs and takes into account the age of the worker and his or her skills. Exceptional allowance was made for agricultural workers to have a higher minimum wage than any other category of worker, although the logic behind such a provision has never been clear.

Wages Boards in the different regions of the UK have come under review at least every five years. The need for them, in view of the National Minimum Wage Legislation, has been hotly debated. Indeed, the decision earlier this year that the Agricultural Wages Board in Northern Ireland should be disbanded, was miraculously reversed within a fortnight by the Northern Ireland Secretary, Peter Hain, following intervention by negotiators from the Transport & General Workers Union (1). They argued that protecting the agricultural wages boards was 'a keystone of the Warwick agreement between the unions and the Labour government'.

The Warwick agreement is a deal struck in July 2004 at Warwick University between the government and the unions over Labour policy and trade union law. It made peace between discontented elements in the unions and government. It thereby averted the threat of mass disaffiliation from the party by the unions and helped to secure union support for Labour in the 2005 general election.

However, there is no logical reason why agricultural workers should have a minimum wage higher than any other worker. Indeed, enforcing a higher minimum wage for agricultural workers imposes a severe and totally unnecessary burden on the farming industry.

The new proposals from the Scottish Agricultural Wages Board (SAWB) are set to create even greater problems than previously. They will have a major adverse effect, rather than benefit, on the opportunities for young persons to enter the industry. This is because the SAWB proposes to abolish the five age-related pay-bands under the age of 22 years.

The current agricultural hourly minimum wage structure for the different age bands is shown in the following table.

The SAWB proposes that all age differentials be removed and that the minimum hourly wage be £5.35 for the first 26 weeks and £5.70 thereafter, irrespective of age.

The comparison between the national minimum wage (NMW) and the proposed agricultural minimum wage (AWMW) is shown below

The Scottish Executive's legal opinion is reported as oddly arguing that age bands in the wages structure flouted new age-discrimination laws, despite the fact that the national minimum wage has retained its age-band structure. The Scottish Agricultural Wages Board's own legal team did not agree with the interpretation advanced by the lawyers employed by the Scottish Executive (2).

There are in fact very good reasons for retaining age-related banding for agricultural employees. Quite apart from the physical strength that is essential for much farming work there are the legal limitations on what work young persons are allowed to do relevant to farming. Thus a 16 year old is not allowed to drive larger agricultural vehicles, which can significantly limit the scope of the work. It is also to be remembered that to insure a worker for driving a pickup or other farm vehicle such as a 4x4 on the roads is astronomically high for anyone under the age of 25.

The Wages Board's own legal Counsel supported the view put forward by NFUS that the retention of age-related bands was appropriate. This lead to a tied vote between the workers representatives (6 members nominated by the T&G Union), the employers representatives (5 nominated by NFUS and one nominated by the Scottish Rural Property and Business Association) and the independent members (5 appointed by Scottish Ministers). The Chairman (appointed by Scottish Ministers) cast his vote in favour of ignoring the Board's legal opinion, scrapping the banding and imposing a standard minimum pay rate irrespective of age.

Scottish agriculture is in no position to be able to support a higher minimum wage structure than any other industry. Indeed, many aspects of the farming industry in Scotland are in economic crisis - such as the livestock industry in the large areas of Scotland designated as being agriculturally 'less favoured' land - hill farming in particular.

At my own farm in Perthshire it is all too apparent that the farm could not support such a wage structure for persons under 19 and probably not under the age of 21, unless they had already acquired additional skills. But how are young people going to get these skills if they are priced out of the market by so-called political manipulation under the guise of political correctness?

Like any other industry the wage actually paid to a farm worker depends on the worker's skills and the market place and not by legislation. Most farm workers in Scotland are paid well above the minimum wage. The skilled workforce in Scottish farming has dramatically reduced in number in recent years. The demands of the politically biased SAWB to raise the wages of young workers wanting to enter farming beyond that of all other workers will simply add to - not help - the problem.

Once again, the Scottish Executive through its so-called autonomous body, the SAWB, is about to give Scottish farming another shot into its feet. As experienced and well trained labour becomes ever harder to find, and if taking on youngsters for training is becoming absorbently expensive with little return, then the answer for many Scottish farmers is to alter the farm policy so that less labour is required. After all, who needs to farm when there is an almost totally decoupled subsidy system that is unrelated to production? The Scottish Executive keeps banging on (from flawed evidence) that farmers should be ever more efficient, while at the same time encouraging them to take on additional enterprises. But the Scottish Executive is in for a big shock when they find there ain't enough folk out there to look after what they regard as their beloved 'sustainable environment'.

Oh dear, what a totally unnecessary mess!

But the cause of it is to be found in the Northern Ireland situation as trumpeted by the T&G Workers Union. As explained above, a word in the ear of the Secretary of State did the trick for the Irish. In Scotland, those on the Board appointed by Ministers, including the Chairman - and indeed the legal team employed by the Scottish Executive - obviously knew which side their bread was buttered. Scottish farming would be the last of their considerations, even if they knew anything about it.

©www.land-care.org.uk

References

1. Transport & General Workers Union (2006). Farm workers hail 'quickest comeback since lazarus' for Northern Ireland agricultural wages board.
http://www.tgwu,org.uk (accessed 26 Oct 06).

2. NFUS (2006). Wages Board decision heavily criticised.
http://www.nfus.org.uk (accessed 26 Oct 06)

Finis