Agricultural Wages Board

Lord Bellingham Excerpts

Wednesday 24th April 2013 Commons Chamber

[George Eustice]

Equally, we could say that the introduction of the Gangmasters Licensing Authority deals with some of the working conditions problems that Opposition Members have highlighted in a way that makes the AWB ever more redundant.

To return to the 1993 debate, the then Minister for Agriculture, Fisheries and Food, Gillian Shephard, held a consultation. A small number of us in the farming industry said that the AWB should go; that it was out of date and anachronistic; that farming should not be treated as a special case; and that the AWB read like something from the 1950s. It tended to be the larger, more forward-thinking farmers who took that view, led by a large salads company, the G’s group, which was run by Guy Shropshire. It was not one of my most successful campaigns. The Government had some 3,500 responses to the consultation, of which only 11 were in favour of abolition. I was one of those 11. That highlights the massive swing in opinion. Opposition Members have highlighted the current consultation, but 40% of people who responded to it have said that abolition is the right thing to do.

[Mr Henry Bellingham (North West Norfolk) (Con)]

I want quickly to comment on a point before my hon. Friend moves on. Surely gangs now have that protection. They are totally different from the average farm worker in East Anglia, where very often someone is in charge of £500,000-worth of equipment and on a very high wage, on a farm that 40 years ago might have employed 40 people, but now employs two people who are highly skilled, very responsible and well paid.

[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 For once, it is saying that we should get rid of the AWB because it is out of date.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.

--- Later in debate ---

[Jack Dromey (Birmingham, Erdington) (Lab)]

I start by declaring an interest: as deputy general secretary of the old Transport and General Workers Union and then Unite, I represented agricultural workers for much of my working life, and was proud so to do.

I start by celebrating England’s green and pleasant land—our hills, our valleys, our forests, our farms, our rivers and our seashores, captured in that great hymn to the countryside, Linden Lea:

“Within the woodlands, flow’ry gladed,

By the oak tree’s mossy moot,

The shining grass-blades, timber-shaded,

Now do quiver under foot…

And brown-leaved fruits a-turning red,

In cloudless sunshine, overhead…

To where, for me, the apple tree

Do lean down low in Linden Lea.”

But elsewhere in that great hymn to the English countryside it reads:

“I don’t dread a peevish master;

Though no man may heed my frowns”.

That great hymn captured both the beauty of our countryside and another reality, which is that all too often the countryside has been scarred by the unfair treatment of workers and rural poverty. I have worked with farmers all my working life, so I am the first to acknowledge the changes in the industry and the many very good farming industry employers, but there remain to this day real problems.

The 19th century, from Tolpuddle onwards, was a century of struggle, with real progress being made in the 20th century, but before anyone argues today that exploitation in the countryside is a thing of the past, let me say this. I listened to the Prime Minister at Prime Minister’s Question Time speaking, and rightly so, about modern-day slavery. Some of the worst examples of slavery, historically and in the modern day, were practised by gangmasters, as was seen at its most obscene in the tragic death of 22 young Chinese cockle-pickers on the bleak, cold shores of Morecambe bay.

As a consequence of that incident, I chaired the coalition of support that brought the Gangmasters (Licensing) Act 2004 into law. It was a private Member’s Bill promoted by my hon. Friend the Member for Paisley and Renfrewshire North (Jim Sheridan). There was a remarkable coalition from plough to plate, from the National Farmers Union to the supermarkets. I shared platforms with Baroness Gillian Shepherd, and we stood together, arguing for a measure that was essential to tackle some of the most obscene practices in the world of work in our country. Sadly, now, we are seeing, on the one hand, the scaling back of the operation of the Gangmasters Licensing Authority and, on the other hand, the proposed abolition of the AWB.

It was Winston Churchill who first took action, as President of the Board of Trade, in 1908. He argued then that we needed fair treatment and to act to keep labour on the land. That was legislated for by the Attlee Government and championed by Harold Macmillan. That is 100 years of history now about to be torn up. I absolutely do not accept the argument that the Agricultural Wages Board is no longer relevant in modern times.

[Mr Bellingham]

The hon. Gentleman obviously has a great deal of expertise, and I agree entirely with his points about the Gangmasters Licensing Authority. I supported that Bill, as did a number of my colleagues, when we were in opposition. After the war, many farmers employed perhaps 50 or 60 people on what would now be considered a smallish family farm, and there was of course a need for a trade union and for the Agricultural Wages Board. It would have been difficult for those farmers to negotiate with their farm workers without such a board. Now, however, those farmers employ a tiny number of people who are much better paid because of the relationship between the farmer and the workers which never existed in the past.

[Jack Dromey]

We have an atomised work force. There has been a progressive change in employment patterns from what was typically the case 50 years ago to smaller, more flexible work forces with a lot of contract labour and very few people being permanently employed on farms. Having said that, the statistics show that the majority of those covered by the AWB still need the minimum standards that the board lays down. I will come to that point in a moment.

I do not accept that the board is an historical anachronism—far from it—not least because half the work force is aged 55 and over and we still need to recruit and retain people to work on the land. Nor is it true to suggest that the board was set in aspic and never changed. Over the years, as a consequence of some very good dialogue, a modernisation process took place.

The proposal for the AWB’s abolition is fundamentally wrong for four reasons. The first involves fair treatment. This is not just about minimum standards. Crucially, it is also about other conditions of employment, which really matter. The simple reality is that the difference between the statutory arrangements and the board’s arrangements will be that, in future, it will be possible for a farmer to pay someone who is off sick £81.60 a week less. Farming is a dangerous occupation for some, and we often see high levels of sickness as a consequence of the work.

Secondly, abolishing the AWB is an inefficient way of proceeding. I asked the House of Commons Library to research the costs of the board, and I was surprised by the answer. I knew that it was lean and effective, but even I was surprised to learn that its administrative costs were £179,000 a year and its enforcement costs were £150,000. That fully functioning Agricultural Wages Board therefore cost a grand total of £329,000.

Now, however, we shall see tens of thousands of negotiations taking place throughout the agriculture sector. I accept that, depending on the nature of the employment pattern, people can often get paid more than the level strictly laid down by the AWB. That happens all the time, as a result of a demand for a particular skill. However, the hon. Member for St Ives (Andrew George) was right to say that, other than in circumstances of exceptional demand, it is convenient for farmers to use the framework laid down by the board. Farmers have said that to me, too. In future, however, we shall see negotiation after negotiation consuming the time and effort of our farmers.