The consultation contains proposed changes to minimum wage rates and allowances alongside other conditions of employment.
The Panel
The Agricultural Advisory Panel for Wales consists of members representing employers and employees, and three independent members appointed by Welsh Ministers. The panel consists of 7 members:
- an independent chair
- 2 independent members
- 2 from Unite
- 1 from National Farming Union Wales (NFU Cymru)
- 1 from Farmers Union of Wales (FUW)
The Agricultural Sector (Wales) Act 2014 established the Agricultural Advisory Panel for Wales. One of its key responsibilities is “to prepare agricultural wages orders in draft, consulting on such orders and submitting them to Ministers for approval.”
The Panel considered the minimum rates of pay which should apply to each of the grades from April 2024. In advance of this meeting NFU Cymru / FUW representing employers and Unite representing employees propose minimum agricultural worker grade rates and changes to the AWO which are based on the views of their members, research and statistics incorporating the issues facing the sector and its workforce.
The unions’ submission
Our submission with FUW, considered latest farm income figures, inflation in agri inputs, the impact of bovine TB on farm viability, the investment required to meet the water quality regulations, the levels of farm borrowing and uncertainty over future support policies and funding arrangements alongside current market conditions.
Taking all of this into account and the anticipated rise in the National Minimum Wage (NMW) / National Living Wage (NLW) from 1 April 2024 NFU Cymru and FUW proposed that the lower grades should be set at NMW / NLW +3p with the current differentials maintained for the higher grades.
Unite proposed that the lower grades should mirror the Real Living Wage currently set at £10.90, that is 48 pence above the NLW. The Living Wage foundation recently announced that that Real Living Wage figure would rise to £12 per hour for 2024. The NMW /NLW rate from 1 April 2024 will be confirmed by the UK Chancellor in November. It is projected to be between £10.90 and £11.43, a central estimate has been given of £11.16. In October, the Chancellor said that the rate from 1 April 2024 would be over £11 per hour.
Consultation proposals
Following a number of rounds of intense negotiations at the panel meeting on the 4 and 5 September, a compromise position was reached with the result that the proposal within this consultation for the 2024 AWO was agreed by all members of the Panel.
In summary the position is that the consultation proposes that the lower grades will rise by NMW / NLW +2.5%. Grade B4 (Agricultural Worker 23+) would continue to be set at NLW+3.1%. The higher grades will rise by 1% above NMW / NLW and the differentials between the higher grades will be maintained. A full breakdown of all the proposals is set out in the consultation document.
Your views
The consultation seeks views on the Agricultural Advisory Panel for Wales’ proposed changes to the current Agricultural Wages Order arrangements, to apply from 1 April 2024. The proposals were made at the Panel’s meeting on 4/5 September 2023.
Responses are required by 19 November 2023.