DAERA consult on the future of NI Agriculture Wages Board

This followed on from Agriculture Minister Edwin Poots’ announcement in early 2021, of his intention to commence the process to revoke the Agricultural Wages (Regulations) (Northern Ireland) Order 1977.

The proposed change would bring employment legislation for agricultural workers into line with those in other sectors.

Why was the AWB established?

The AWB has been in existence for 73 years in NI with the Agricultural Wages Act introduced in 1948 (subsequently superseded by the 1977 Order), there were 29,538 agricultural workers in NI. Many of these were horsemen and gangs of agricultural workers who travelled across NI working on many different farms in a season.

What does the AWB do?

The AWB was set up as an independent body, with a statutory obligation to set minimum rates of pay and conditions for workers employed in NI agriculture, at a time when workers were often poorly paid and has met on 338 occasions.

Why is the change being suggested?

Both agriculture and employment has changed beyond recognition. Graph one, the number of those employed in farming has fallen dramatically. The number of hired agricultural workers has fallen significantly from over 61,883 in 1912, to 39,222 in 1940 during the Second World War, to 6,738 paid workers in 2019.

Furthermore, if you consider the definition of ‘agriculture’ within the Order which is being revoked you will see why it is out of date. It includes the definition “the scutching of flax”.

In the last two decades, there have been dramatic changes in employment legislation. There have been legislative moves to improve the level of protection afforded to all workers, covering minimum wage, holiday entitlement and sick pay, reducing the need to have separate rules for agriculture. National Minimum Wage (NMW) (introduced in 1999) and the National Living Wage (NLW) (introduced in 2016) means there is a duplication of employment legislation which is more far reaching than the AWB and further protects the rights and welfare of agricultural labour in NI.

Why is change needed?

The AWB is underpinned by the annual wage negotiations between ourselves and UNITE. Since 2016, as illustrated in graph two, this has been rendered pointless by the convergence of agri-wage grades and the minimum wages set by the government.

Agriculture wages are set according to grades which reflect training, experience and responsibility which has been gained in employment and create a career structure in the industry. NMW and NLW is additional government legislation which sets rates according to age of the worker and supersedes the agricultural grading structure. This has trashed the differential in pay bands within the AWB structure and meant that workers are no longer paid according to experience which is crucial in many aspects of farming.

What would change according to the proposals?

The minimum rate of pay would no longer be set by the AWB for agricultural workers and would be replaced by NMW legislation.

By abolishing the AWB, the regulatory and administrative burden on agricultural businesses will be reduced. It will also clear confusion which we often hear from employers and crucially the agricultural sector will be brought in line with the rest of the economy, with all workers receiving the protections afforded by wider employment law and UK minimum wage rates.

Summary

It has been nine years since the last review and our long-standing policy position that the AWB in NI is outdated. This is even more relevant in 2021 when workers are already protected by a plethora of legislation which duplicates the AWB. Agricultural employers already pay significantly more than the minimum wage in many instances and offer working conditions which will retain skilled and able workers who are needed in the running of a viable and profitable farming enterprise.

The UFU would urge all members who employ staff to reply to this consultation and we will be issuing further information in due course via social media platforms.