Agricultural Wages Board

Yasmin Qureshi Excerpts

Wednesday 24th April 2013 Commons Chamber

[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.

[Yasmin Qureshi (Bolton South East) (Lab)]

Does my hon. Friend agree that this is another pernicious, shoddy little policy by the Government, who are ideologically driven to cut the wages of ordinary working people?

[Mary Creagh]

They are certainly driven by ideology, although the ideology of the Minister of State seems to have changed from when he was a Back Bencher, now that he enjoys the privilege of a Government car. I do not know what has changed for him.

Without the AWB, farm workers will be worse off. As my hon. Friend the Member for Corby (Andy Sawford) said, there will be no minimum wage for children under 16. Seasonal workers will lose their entitlement to their own bed, which is currently guaranteed by the board. The cap on the amount employers can charge workers for tied accommodation, currently £4.82 a day for a caravan, will be removed. Some 42,000 casual workers will see their pay cut to the minimum wage as soon as they finish their current job. The rest will see their wages eroded over time.

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[Mr Paterson]

In October this year, the Government will raise the national minimum wage by 12p an hour to £6.31. [Interruption.] Let me respond to the chunterings of the shadow Secretary of State by pointing out that that is 10p above the lowest band rate set by the Agricultural Wages Board. Agricultural workers supplied by a labour provider will continue to have the added protection of the Gangmasters Licensing Authority. We will also make changes to the working time regulations by means of secondary legislation in order fully to align the treatment of agricultural workers with those in other sectors.

[Yasmin Qureshi]

Will the Secretary of State promise that if the wages and terms and conditions of agricultural workers start to decline after the abolition of the Agricultural Wages Board, he will reinstate the board?

[Mr Paterson]

I cannot promise anything. It is up to individual employers. What I do know is that employers throughout the country are crying out for good staff. Finding a good cowman is like finding hens’ teeth, and a really skilled driver of a modern piece of equipment worth hundreds of thousands of pounds is someone an employer will really hang on to.

[Yasmin Qureshi]

rose—

[Mr Paterson]

I have already answered the hon. Lady’s question. She takes a completely black view of the economy, but this is an expanding sector that demands skilled people.

[Yasmin Qureshi]

rose—

[Mr Paterson]

I am going to press on. Other Members want to speak.

I believe that agriculture needs to encourage new and young workers to come into the industry. Evidence suggests that the skills shortage in agriculture will be greater in the years between now and 2020 than in other sectors of the economy. The agricultural work force is also ageing: 55% are over 45, which, again, is a higher figure than is found in other sectors of the economy. Under the new arrangements, market drivers will ensure that wages remain competitive. Farmers will need to offer competitive employment packages and career opportunities at all levels to recruit and retain workers to meet their business needs.

Of course, we recognise the need to ensure a smooth transition for agricultural workers and employers to the new arrangements. Subject to parliamentary approval for the Enterprise and Regulatory Reform Bill, we intend to invite industry representatives to a meeting to explore whether there is scope for future informal, voluntary industry engagement between employers and workers. DEFRA also supports a review of the agricultural skill levels used in the agricultural wages order, which will contribute to the broader work of the industry AgriSkills Forum. We will ensure that written guidance and information is available for workers and employers to help them understand the changes and what they mean for them.

The abolition of the Agricultural Wages Board will allow the industry to modernise while ensuring that agricultural workers have the same levels of protection as workers in all other sectors of the economy. It will ensure a vibrant and sustainable future for agriculture and will have benefits for those who work in the industry, as well as the wider rural economy.

The motion seems to look upon the UK agriculture industry as though it is still powered by beer, sandwiches and steam, when in fact it is reliant on cutting-edge technology, machinery and science. The Government wish to equip the agriculture sector for the challenges and opportunities of the 21st century. The Labour party and its union backers do not. We will vote against the motion.

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[Simon Hart]

I think that my hon. Friend is wrong on only one point: he says that the Labour party does not understand, but I think that it understands only too well. It is caught in a difficult position because its union sponsors are saying one thing and its constituents in certain areas are saying another.

[Yasmin Qureshi]

May I just confirm that, as a former barrister, I neither belong to a union, nor am I financed by a union? I am concerned about the working conditions and pay of working people. I will ask the hon. Gentleman the same question I asked the Secretary of State earlier: if after the abolition of the Agricultural Wages Board we find that workers’ wages, accommodation and so on deteriorate, will he reintroduce it?

[Simon Hart]

It might surprise the hon. Lady to learn that I am not a member of the Government and so I am not really in a position to answer that. Of course, I sat through 13 years of Labour disdain for rural Britain, and that question was asked on many occasions. However, I do not want to be reprimanded by the Chair twice in two days for getting off the topic by talking about union sponsorship, so if she will forgive me—

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[Mr Hanson]

If the hon. Gentleman will let me develop my argument, he will see that this is not just about pay. He was not here at the time, but the Secretary of State kept me up for 36 hours so he could vote against the minimum wage. He did not do that so that wages could rise; he did it so that wages would not rise. My worry about the abolition of the AWB is based on exactly the same principle: it will remove a floor that protects the work force in my constituency.

As I have said, my constituency depends on agriculture and more than 11% of my constituents work in agriculture. Courses in horticulture and agriculture at Northop college bring in people to train in agriculture. These are key issues. Although Government Members may view minimum rates of pay, overtime, holiday entitlement, sick pay, rates of pay for young workers, compassionate leave, rest breaks, maximum deductions for tied housing, allowances for keeping working dogs and payment of on-call and night allowances as issues of regulation, to my constituents they are bread and butter matters that impact on their lives and they want their representative and others who represent rural areas in Parliament to stand up and speak on their behalf. They are not idle issues.

I am getting a bit long in the tooth. I have been here for 21 years and the first Bill Committee I sat on was for the 1992 employment Bill that abolished every single wages board apart from the AWB. That Bill was taken through this House by the then Member for Stirling, the now noble Lord Forsyth, who is not known for his left leanings, but who decided to maintain the AWB because he recognised, even at that time, that it was crucial for conditions as well as wages.

The national minimum wage has been mentioned. I was very proud to vote for the national minimum wage and am grateful that my right hon. Friend the Member for Derby South (Margaret Beckett) is here. It was one of the greatest achievements of the Labour Government. The then Opposition kept this House up late into the evening because they did not support it. Why should we trust a party that does not support the national minimum wage when it says that this measure will maintain or improve pay and conditions?

[Yasmin Qureshi]

Is it not right that over the past 15 or 20 years, the Conservative party has always taken away working people’s rights and benefits when in government?

[Mr Hanson]

My main worry is that the assessment of the Welsh Assembly that some £26 million to £28 million will be taken out of agricultural wages in Wales over the next 10 years will prove to be correct and that rural poverty will increase. That is money that will not be spent in the shops of Mold, Holywell and Flint in my constituency, that will not help to sustain the rural economy in my constituency, and that will not be spent in the rural post offices, pubs and communities of my constituency. That money will be lost to the area. This measure will be damaging for the 13,829 people across Wales who work in the agricultural sector and who depend on the wages board.

As I have mentioned, the Farmers Union of Wales, which, with respect to the hon. Member for Carmarthen West and South Pembrokeshire (Simon Hart), is not affiliated to the Labour party, has said on many occasions that it opposes the moves by the UK Government to abolish the Agricultural Wages Board. It stated:

“The Union has always supported the AWB and remains concerned that unless there are systems in place to protect payments to agricultural workers, the industry will not attract the highly skilled individuals it needs to thrive”.

It went on to say:

“As many farms in Wales run with relatively few staff, the AWB is considered an important means of avoiding potential conflict and lengthy negotiations with individual staff”.

It also said:

“The economic climate within the agricultural industry has made it a less attractive option for young people, and rewarding skills, qualifications, and levels of responsibility is a vital means of persuading high calibre people to remain or enter into the industry.”

As my hon. Friend the Member for North West Durham (Pat Glass) said, the Labour-controlled National Assembly for Wales was not consulted about the abolition of the AWB, as it should have been by statute. The Government failed to do that and passed the measure through the back door in a Bill that did not require consultation. The Secretary of State knows that he should have consulted the National Assembly. These are important matters for my colleagues there. As has been mentioned, the National Assembly may outline shortly its plans to keep the minimum wages and conditions set by the Agricultural Wages Board in a Welsh context. However, that will involve bureaucracy and cost. It would have been far better, particularly from a Unionist party, if the conditions had been maintained across England and Wales.

As I mentioned in an intervention, the Secretary of State represents a border area. His constituency of North Shropshire is not far from mine; his borders Wales and mine borders England. If there are different terms and conditions on either side of the border, the market will flow across it. If the conditions are worse in England than in Wales, which they may be if the Welsh Assembly retains the board, the Secretary of State will find that there is a flow of individuals looking for better terms and conditions, who will perhaps only have to travel 1 or 2 miles across the border. I find it strange that that will be caused by a Unionist politician. Mold, Holywell and Flint in my constituency will lose income because of this measure, but I believe that there will also be a confidence issue.

In conclusion, 63% of the people who were consulted did not support this measure and the Welsh Assembly does not support it. I accept, as the hon. Member for Carmarthen West and South Pembrokeshire said, that Unite the Union does not support the measure to abolish the board, but it is part of a broad-based coalition that does not accept it. The Minister of State—the Tonto to the Secretary of State’s Lone Ranger—did not support this proposal in opposition, but is an advocate of it in government. He should examine his conscience and think about what is in the interests of his constituents.

The people driving the change are the same people driving tax cuts for millionaires. They are out of touch with their communities and with rural areas. I am proud to represent a rural area and speak up for it in Parliament, and I will be proud to vote today and say that whatever has already happened in legislation, I support the AWB.

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[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.

[Yasmin Qureshi]

The hon. Gentleman states that this is a progressive pay policy. In the past 30 years, have a Conservative Government ever passed any legislation that has helped the working person, whether in terms of payment, work and conditions, or equality? Conservative Governments have never, ever advocated and voted for the rights of the working person.

[George Eustice]

I do not want this debate to get distracted, but even in the current Parliament the coalition Government have changed tax thresholds that help all working people, especially those on the lowest income.

Another problem with the rigid pay structure is that, as currently structured, it can discourage training and career development in small farm businesses. I will explain why. A small farmer might have two or three employees. He might not be able to afford to employ someone on grade 2, grade 3 or grade 4. He might not really have a need for those staff to be trained to those grades, but might nevertheless take the view that to aid the career development of a new employee—perhaps someone who has just left school and joined their business—he will give them time off work and support them in proficiency tests and training. At the moment, if they do that, the next thing that happens is that they suddenly have to pay that person more money. Is it not better if that person can develop and train, and has a farmer who wants to facilitate that, so that maybe, when a neighbouring farm needs somebody who has the proficiency test skills and a different type of skill set, they are able to progress and take a job that is higher paid in that neighbouring farm? The farmer will want that to happen; he will be happy to encourage somebody and see a career develop. At the moment, however, we are in a situation where the rigid grade structure discourages farmers from wanting to have their employees seek further training.

We have heard a lot in this debate, both from my hon. Friend the Member for St Ives (Andrew George) from my neighbouring constituency—we take different views on this, as people will have noticed—and others, about how difficult it is for farmers to negotiate with their staff, as if it is something that is dreadfully embarrassing and they cannot possibly do it. I reject that idea completely. Farmers, if they are still in business today, have to do all sorts of challenging things: they have to negotiate with people day in, day out; they have huge amounts of paperwork to deal with; and they have to negotiate and fight over the costs of their feeds, fuel bills and all sorts of things. The idea that they cannot sit down with the people they work with every day and have an intelligent conversation about their pay review is, frankly, ludicrous.

Farm businesses are no different from any other businesses. Even if they do not have to have discussions with their employees about pay rates, one can guarantee that there will still be times when they have to have discussions about people turning up for work late and staff who have problems at home and need some time off—all those sorts of issues. There is nothing different about farming. I was in the young farmers club in Cornwall with many of the farmers in my hon. Friend’s constituency. I know many of them and I can tell him that they are perfectly capable of having those conversations with their employees.