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Agricultural Wages Board
03/09/2009
The Scottish Agricultural Wages Board (SAWB) will be retained following the introduction of a new apprenticeship rate and to ensure vulnerable workers are protected.
Following a consultation on the future of the Board Richard Lochhead, Cabinet Secretary for Rural Affairs, today announced in Parliament that he had concluded that it should be retained.
The need for a SAWB will be reviewed again in 2011.
Mr Lochhead said:
"Now that the SAWB has confirmed the wage rates for apprentice workers, the government is able to take a view on future arrangements.
"Over 80% of farm workers are in fact paid at market rates above the Wages Board minimum so the market is largely determining pay rates. But the Board still has a role to play in guiding wages decisions, and in protecting the minority of agricultural workers who are on minimum pay and conditions.
"Attracting the next generation into farming is crucial to its sustainability. The new Level II Apprenticeship for agriculture, backed by increased Scottish Government funding and in conjunction with the apprenticeship rates confirmed by the Board last week, will make it easier for employers to take on young workers.
"In the light of these developments and against the backdrop of the current economic climate, I have decided to retain the SAWB , subject to a further review once we can judge the success of the Level II apprenticeship."
The Scottish Agricultural Wages is constituted under the Agricultural Wages (Scotland) Act 1949. It is an autonomous body and comprises 17 members: six representing the interests of employers nominated by the NFU Scotland and the Scottish Rural Property and Business Association; six representing the interests of workers nominated by Unite the Union; and five independent members appointed by the Scottish Ministers, one of whom is designated Chair.
Decisions taken by the SAWB effects 25,480 workers. Of this 12,688 are employed full-time with the remaining 12,480 part-time or seasonal workers.
Minimum rates of pay for agricultural workers are:- £5.73 for the first 26 weeks and £6.20 thereafter. The annual minimum wage for an adult is £5.73. According to Scottish Government surveys of wage rates, some 87 per cent of agricultural workers are paid above the agricultural minimum rate.
New UK equality legislation in 2006 obliged the SAWB to remove the distinction between wages rates for workers of different ages, making it more expensive for employers to afford to take on young workers. To address this issue, last week the SAWB confirmed new apprenticeship wage rates for young workers participating in a new Level II Apprenticeship for agriculture. The new apprenticeship will be backed by government funding for the Modern Apprenticeship programme, with an additional 7,800 apprenticeship places across the economy in 2009-10.