Agricultural Wages Board

Grahame Morris Excerpts

Wednesday 24th April 2013 Commons Chamber

[George Eustice]

My hon. Friend is right and underlines my point that the GLA has made the AWB ever more redundant. Those at the bottom on those low incomes have new protections.

One big thing in this debate compared with the last one—it is important to recognise this—is that the National Farmers Union is on the right side. For once, it is saying that we should get rid of the AWB because it is out of date. In 1993, the NFU let down its members. David Naish, the then president, supported the retention of the AWB, and he was wrong to do so. The NFU board of directors at the time was out of touch and behind the curve, but the NFU now recognises that things need to change and fully supports and endorses the abolition of the AWB. If even the NFU supports the abolition of the AWB, it is time to act. Another big change since 1993 is, as many hon. Members have said, the introduction of the minimum wage, which is yet another measure that makes the AWB out of date and no longer necessary.

How does the AWB frustrate rather than improve career development in the agricultural sector? The most important thing is the huge lack of flexibility. The board is based on old-style wage grade rates dating from the ’60s and ’70s, and completely ignores the fact that, in the most progressive farm businesses, many people are paid a salary and have management responsibilities. The best farm businesses have profit shares and payment by results. Piece rates are increasingly used when people earn far in excess of the minimum wage rates. Those modern day pay practices are completely ignored by the agricultural wages order, which can frustrate the development of more progressive pay policies in the farming industry and keep it trapped in a 1950s mindset.

[Grahame M. Morris (Easington) (Lab)]

I am following the hon. Gentleman’s argument closely, but cannot understand why anyone would want to do away with the minimum. He suggests that, in many sectors of the agriculture industry, people are highly skilled and receive higher remuneration than would be set as a minimum by the AWB, but why argue for its abolition if it does not affect those people? Surely the AWB protects a group of people who do not receive such higher remuneration.

[George Eustice]

The group of people the hon. Gentleman is concerned about are protected by the minimum wage. That is already there and is set at roughly the same level as a grade 1 agricultural worker, so I do not think that that is an argument at all. What I am saying is that being too rigid can actually frustrate the development of more progressive pay policies.

The other point, which the Secretary of State touched on earlier—we had this in our farm business where some of the work was in pack houses—is that someone could be running a conveyor belt packing strawberries one minute and working in the field the next, with totally different wages rates applying. We ran a farm shop, in which different rates applied, even though there were sometimes shared staff.

--- Later in debate ---

[Grahame M. Morris (Easington) (Lab)]

I support the Opposition motion to resist the abolition of the Agricultural Wages Board. Government Members have accused us of waging class war, but this is an issue of social justice and if that means that it is also an issue of class, I make no apology.

My hon. Friend the Member for Birmingham, Erdington (Jack Dromey) quoted Winston Churchill, who, amazingly, has been quoted three or four times by some surprising sources in this place over the past couple of weeks. I looked up Mr Churchill’s quote, and hon. Members might be interested to know that he spoke in class terms:

“It is a serious national evil that any class of His Majesty’s subjects should receive less than a living wage in return for their utmost exertions…where you have what we call sweated trades”.

There are no bankers or accountants present on the Government Benches, but there are some farmers and others associated with the industry. They will know what sweated trades are, so I do not need to explain that to them. On sweated trades, Churchill said that

“you have no organisation, no parity of bargaining, the good employer is undercut by the bad, and the bad employer is undercut by the worst…where those conditions prevail you have not a condition of progress, but a condition of progressive degeneration.”—[Official Report, 28 April 1909; Vol. 4, c. 388.]

That was Winston Churchill arguing for the establishment of the Agricultural Wages Board, so who am I, as a socialist, to argue with Winston Churchill? He was absolutely right.

In his excellent speech the hon. Member for St Ives (Andrew George) spoke of how the industry has developed and how farming has morphed into large agri-businesses and the food trade has gone global, and how that has put particular pressures on rural workers.

We on the Opposition Benches are concerned that the living standards for rural workers will go backwards. It is scandalous that last week we were not even afforded the courtesy of a debate, let alone a vote. The Government should think a thousand shames that they whisked through their plans to not just dismantle, but to abolish the AWB. It was disgraceful that Parliament was disregarded by a Government in a hurry to sweep away 100 years of workers’ rights and a century of consensus on rural living wages and housing standards.

Members keep asking why those rights should apply to rural workers and not to other groups of workers. As we have heard from a number of Members, the answer relates to tied accommodation, training and compassionate leave. The provisions also apply to workers who have to have dogs, presumably for sheep farming, so the AWB is different and there is a strong case for retaining it.

We saw just this week in The Sunday Times rich list that there is still massive personal wealth in the United Kingdom. Among those who are doing the best and who are luxuriating in extreme largesse are a number of UK food manufacturers—not large farmers—including Morrisons, Sainsbury’s and 2 Sisters, which is one of the biggest food processing companies in Europe. At No. 80 in the rich list is Lord Vestey, the owner of Stowell Park, which is one of the businesses that lobbied for the abolition of the Agricultural Wages Board.

Government Members accuse Labour Members of arguing the case of the trade unions. I am a proud member of Unite the Union and make no apology for that. If standing up for agricultural workers is a sin, I am guilty and unrepentant. However, it is also clear who is behind the abolition of the Agricultural Wages Board. It is the big businesses that are tightening their grip on the food industry that lobbied for its abolition.

The abolition will affect 150,000 people in England and Wales and about 5,500 agricultural workers in my region. I have discovered that 55 families in my constituency will be affected. We have heard about the history of the establishment of the Agricultural Wages Board, so I will not rehearse it.

I was intrigued when my right hon. Friend the Member for Delyn (Mr Hanson) mentioned that the Minister of State, Department for Environment, Food and Rural Affairs, the hon. Member for Somerton and Frome (Mr Heath), used to be a vociferous supporter of the retention of the Agricultural Wages Board. Early-day motion 892 of the 1999 to 2000 Session, which he supported, stated that

“any weakening of the Agricultural Wages Board or its abolition would further impoverish the rural working class, exacerbating social deprivation and the undesirable indicators associated with social exclusion”.

What has changed? Is it that the AWB is outdated and bureaucratic? Have the conditions of agricultural workers changed so much that we do not need it? I do not think that that is the case.

The third of agricultural workers who live in tied accommodation will no longer be protected by a cap on the amount that their employers can charge them for accommodation. They would risk losing their homes if they rejected downgraded contracts. That implication of the abolition was raised with me by an agricultural worker. We have also heard that the abolition will potentially cost agricultural workers £260 million in lost sick pay and holiday pay over the next 10 years.

Although the Government’s mantra is that they want to make work pay, the abolition of the Agricultural Wages Board will lead to a race to the bottom in wages and terms and conditions for agricultural workers, and will therefore make work pay less. If wage protections are abolished, agricultural workers will see their terms and conditions squeezed. Nobody is tarring all farmers with the brush of being unscrupulous employers and my hon. Friend the Member for Birmingham, Erdington was at pains to point out that many of the farmers he came across were very good employers, but there will be some who pass the pressure from the supermarkets on to their workers. That is a real concern.

Costs are much higher in rural areas than in urban areas. The Joseph Rowntree Foundation found in 2010 that people living in rural areas spent between 10% and 20% more on everyday needs than those in urban areas. The Office for National Statistics estimates that the weekly spending of rural households is more than £50 higher than that of urban households, which must be a problem for a rural workers.

It would not have been acceptable not to have a debate, and it is not acceptable for the Government to ignore the outcome of the consultation; let us put it on the record that it indicated that the board should be retained. They are facilitating the redistribution of income away from some of the most vulnerable workers in the land to some of the wealthiest private individuals in the land. That is why the Opposition motion and the debate are to be welcomed.

I ask the Government to show the same care and attention to the living standards and wages of the poorest as they have to the richest 1%, who are now enjoying a top rate tax cut. If they wanted to protect the living standards and wages of the poorest in society, they could make a good start today by not abolishing the Agricultural Wages Board and by allowing trade unions, employers and independent representatives to continue to negotiate fair terms and conditions for vulnerable workers.