Agricultural Wages Board

Debate between Mary Creagh and Andy Sawford

Wednesday 24th April 2013 Commons Chamber

[Mary Creagh (Wakefield) (Lab)]

I beg to move,

That this House notes that the Agricultural Wages Board (AWB) was set up in 1948 to provide a fair wage and skills structure for agricultural workers; recognises that it is used as a benchmark for other employment in the food industry and that it was the only wages council not to be scrapped in the 1980s; further notes that around a quarter of agricultural workers live in tied accommodation and that casual seasonal workers may move around the country; regrets that the Welsh Government’s wish to retain the AWB has been ignored by the Government; condemns the Government for its abolition of the AWB, which took place after just four weeks consultation and will take £260 million out of the rural economy over the next 10 years, lead to a race to the bottom on wages in rural areas, reduce living standards and impoverish rural workers, exacerbating social deprivation and harming social inclusion; further regrets that hon. Members could not debate that issue as part of the Enterprise and Regulatory Reform Bill; and calls on the Government to drop its plans to abolish the AWB.

Last week, the House abolished the Agricultural Wages Board without debate and without a vote. The AWB sets the pay and conditions for 152,000 farm workers in England and Wales. That shoddy little manoeuvre was the result of Government desperation to force through the board’s abolition in the teeth of opposition from my colleagues in the Welsh Assembly Government, workers’ representatives and many farmers. Perhaps it was also the result of a fear of another coalition split or Back-Bench revolt. Today, the Opposition are allowing Back Benchers the chance to debate and vote on that abolition—a vote the Government denied them last week.

Like today’s debate, other debates on the subject have been sparsely attended by Government Back Benchers. Perhaps they flinch from defending an ideological decision that will impoverish hundreds, and in some cases thousands, of their hard-working constituents who work the land. We know that the Secretary of State for Environment, Food and Rural Affairs traps squirrels on his estate. His Liberal Democrat colleagues should beware the political traps that he enjoys setting for his coalition partners. In opposition, the Minister of State supported a motion that warned that abolishing the AWB would

“impoverish the rural working class”.

Today, he and his colleagues once again act as midwives to Tory dogma that will make thousands of people in their constituencies worse off—1,020 people in the Minister’s constituency and 1,120 people in the Secretary of State’s constituency.

The abolition of the AWB is wrong on three counts. First, it will take money out of workers’ pockets and out of rural high streets at a time when the economy needs it most. The abolition does nothing to reduce the deficit; it could even increase the deficit by adding to the welfare bill, because workers pushed into poverty pay will claim more in-work benefits and lose the incentive to gain new skills. Secondly, the abolition is bad for our food industry. A race to the bottom on pay will not help to attract the new recruits the industry needs. Thirdly, the abolition is bad regulatory reform because, paradoxically, it will increase the burden of employment regulation on small farmers, meaning that many more of them could end up in employment tribunals. Ministers’ incompetence will result in lower pay, higher welfare spending and more regulation, and it will deepen the recession in the rural high streets they represent.

First, let us look at how the measure will take money off low-paid workers. The AWB protects pay and conditions for 152,000 farm workers in England and Wales.

[Andy Sawford (Corby) (Lab/Co-op)]

Does my hon. Friend share my concern that among those working on the land are people like me and many others in Northamptonshire whose first experience of work, under the age of 16, was picking fruit on the farms in rural Northamptonshire? This will have a particular impact on them because they are not covered by the minimum wage.

[Mary Creagh]

Absolutely. With the abolition of the AWB, there will be no minimum wage for children under the age of 16 who are picking fruit or driving tractors at weekends and in the summer holidays. When one thinks about the amount of money a tractor is worth, and how such work could become a route into farming for some young people, it will certainly cap their access to that employment.

As well as the 152,000 who are directly covered by the board, a similar number have their wages set against the AWB benchmark, including equestrian workers in the racing and leisure industries, estate workers and gamekeepers. Nearly every constituency in the country has some people who will be affected, including more than 50 people in Wakefield. The board sets fair wages, holiday pay, sick pay and overtime. It has six grades, and the lowest grade is just 2p an hour more than the national minimum wage.