Consultation on Review of the Role of the Scottish Agricultural Wages Board: Findings from the Analysis of Consultation Responses

Alternative solutions for establishing wage rates and terms and conditions

Responses to the question asking respondents to advise on an alternative solution for establishing wage rates and terms and conditions for agricultural workers in Scotland.

Main themes emerging from the responses:

1. Proposals for the remit of the SAWB to be extended and/or changed
2. Changing how the SAWB rate of pay is set
3. Proposal to improve the enforcement of SAWB rates
4. View that the National Minimum Wage renders other wage controls obsolete
5. Proposal that the industry look at the cost of living changes to determine reviewed rates
6. Terms and conditions
7. Abolish the SAWB and use the money to assist workers

1. Proposals for the remit of the SAWB to be extended and/or changed

Unite the Union Scotland proposed that in the future any 'period review' should consider the extension of the remit of the SAWB. A number of proposals were put forward by a variety of respondents for extending the SAWB's remit. For instance, it was proposed that the coverage of the SAWB be extended to agriculture and horticulture-related workers who are currently excluded from its remit (e.g. some estate workers and private gardeners, and some packing station workers). Sustain proposed that the SAWB's remit could be extended to include improving the enforcement of SAWB rates, and more effective ways to deal with employers exploiting workers in the agricultural sector.

The STUC pointed to opportunities for an enhanced SAWB "to provide a framework for industry wide engagement between employers that uses the skills of trade union health and safety, environmental, equality and learning representatives to deliver a fairer, greener, more equal and highly skilled workforce". It proposed that an enhanced SAWB could take forward the recommendations of the Working Together Review and suggested that the SAWB could be given additional powers to develop strategies to meet the individual recommendations within the 'Developing Capacity and Capability in Industrial Relations' theme. For instance, it argued that "a reformed board could investigate how trade union equality reps could address issues associated with this sector that has high levels of migrant labour with potential for exploitation". The STUC also suggested that the SAWB "consider how effective workplace representation could be developed in conjunction with Unite" within the 'Supporting Fair Employment' theme. It was proposed that the SAWB could also revisit the concept of 'Roving Safety Representatives' and extend this to include union equality, environmental and learning representatives.

The STUC maintained that increasing the SAWB's responsibilities could make it a mechanism for trade unions and employers to develop innovative approaches to industrial relations in the sector. It proposed that "a refreshed collective bargaining model should be developed for the SAWB to better reflect the needs of the sector and to take into consideration the wider fair work agenda promoted by the government".

Additionally, one respondent suggested that temporary employees be exempted from the SAWB Order in their first 6 months of employment. Another respondent proposed that ornamental horticulture be exempted from the remit of the SAWB, given that ornamental horticulture was not intended to be covered under the original Agricultural Wages (Scotland) Act 1949.

2. Changing how the SAWB rate of pay is set

The Scottish Living Wage Campaign recommended that the SAWB rate of pay be set in relation to the actual costs of living, in a way similar to the Living Wage as set by the UK Living Wage Foundation.

The 50 Club Horticultural Employers' Association pointed out that there are a number of labour market indicators that can be used to establish wage rates and terms and conditions, including setting out the annual percentage increases under the National Minimum and Living Wages; cost of living increases (e.g. based on CPI); average weekly earnings figures; and farm business profitability. The group noted that it would be willing to circulate such indicators to their members on an annual basis.

3. Proposal to improve the enforcement of SAWB rates

Unite proposed that measures should be considered to improve the enforcement of SAWB rates and to effectively tackle rogue employers operating and exploiting workers in the agricultural sector.

However, another respondent noted that the Ethical Trading Initiative (ETI), which all UK supermarkets have signed up to, already enforces regulation that is a higher standard than law (e.g. in relation to pay for overtime).

4. View that the National Minimum Wage renders other wage controls obsolete

It was argued that the National Minimum Wage and proposed Living Wage render any other wage controls obsolete. NFUS noted its view that the National Minimum Wage is the appropriate safety net for all workers. It was suggested that the new Living Wage would also raise the skilled rates of pay, as both employees and employers would be keen to keep a gap.

One respondent proposed that the AWB and AWO be phased out with one year's notice and replaced by the Minimum Wage, "or preferably the minimum wage together with other existing employment regulations of general application, such as those covering minimum holiday entitlement". It was suggested that the implementing legislation would protect the pay of existing agricultural workers from any reduction in their wage rates and related compensation.

Additionally, it was proposed that Scotland use the same rates and terms and conditions as set by the UK government for England and Wales.

5. Proposal that the industry look at the cost of living changes to determine reviewed rates

It was proposed that, in addition to the publication of the annual National Minimum Wage changes, the industry could look at the cost of living changes, the labour market and comparative industries and farm business conditions to determine reviewed rates.

6. Terms and conditions

With regard to terms and conditions, one respondent proposed that for the accommodation charge, the rate set nationally could be used. In relation to sick pay, it was suggested that this piece of legislation "could be kept purely for agricultural workers as it is, or it could be abolished and the national terms for other employees could be followed". In relation to an additional sum for employees with qualifications, the respondent could not "think of anyone who would not pay an employee with appropriate skills more anyway".

Additionally, it was proposed that dog allowances be incorporated into tax regulations in the same way as maximum mileage reimbursement rates.^[2]

7. Abolish the SAWB and use the money to assist workers

One respondent proposed that the SAWB be abolished and its funding used "to sort out the dark areas of our supply chain that disadvantage small and medium-sized enterprises (SMEs) and family businesses, keeping them in the pocket of the retailers paying artificially low costs of production and withholding payment until long after produce is sold and consumed, effectively providing 0% finance to the multinationals (who have no wage boards to answer to)". It was suggested that using the SAWB's funding in this way would give SMEs "the confidence to grow, flourish and expand", leading to wage rises and employment opportunities.

Another respondent proposed that the SAWB be removed and funding extended for agricultural apprenticeships to the over 19 age group.