The Agricultural Wages Board, which was set up in 1948 to negotiate on pay rates and other terms and conditions of employment (sick pay, holidays, tied in housing, working animals, and provision of protective clothing) between employers and workers' representatives, officially ceased operations today.

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The AWB was marked for dissolution by the Conservative-led coalition government in its 2010 bonfire of the quangos, but protracted protests and legal challenges meant its closure took almost three years to enact. The board's fate was sealed in April, when the bill containing AWB legislation (Enterprise and Regulatory Reform) passed through the Commons without proper a debate or separate vote. 

The board's activities came to an end with the final day of the 2012 Aricultural Wage Order, which expired on Monday (30th September). From Tuesday 1st October, farmers and managers will be responsible for negotiating pay rates and work relations in the sector will be governed by minimum wage and other workplace legislation instead of the graded pay scheme maintained under the Agricultural Wages Order.

Reacting to the bill's passage in April, shadow Environment Secretary Mary Creagh denounced the board's demise as "Regulatory reform that will add to farmer red tape; a race to the bottom on wages that takes from the workers and transfers money to the owners," adding, "With food banks set up in even the most chocolate box rural areas, abolition of the AWB will increase food poverty in our food industry and our countryside."

The NFU, which was an influential advocate for AWB closure in England, believed the wage board to be an "anachronism," NFU leaders claimed "simple economics point to higher rather than lower wages in the long term" as a result of the government's liberalising move. However, Defra's own documentation on AWB closure suggested in autumn 2012 that only farmer employers will profit from the change, through the "Reduction in sick pay paid by farmers, value of labour to farmers of decreased annual leave [and] reduction in wages paid by farmers."

Reinforcing accusations from those who claim AWB abolition was ideologically driven and unnecessary, Defra ceded in the same consultation document that closure could increase 'red tape,' which it has pledged to combat. Defra acknowledged, "Employers will need to familiarise themselves with relevant legislation instead of the AWO. Workers and employers will need to spend time on negotiations to agree pay levels & other terms & conditions individually."

Reactions to AWB closure

Commenting on the new employment landscape, NFU chief economist Phil Bicknell said the union "is keen to ensure as many farmers and growers are aware of the changes as possible," and will make employer information packs available to its members. He continued, "This finally sees agriculture on par with other sectors of the economy when it comes to employment issues, as we move away from the restrictions of the Agricultural Wages Board.

"Farm employers will be free to engage new workers on terms and conditions that comply with wider employment legislation, rather than being bound by, what some would view, as a rigid framework imposed by the old agricultural wages legislation."

However, trade union Unite, which represents agricultural workers, said "More than 60 years of pay protection [had been] vindictively axed" on Monday. Unite too said it is committed to providing information for "members facing fraught pay negotiations with their employer for the first time" in the wake of AWB closure. The union said it will campaign to uncover and address issues of exploitation arising from the change in employment legislation.

Julia Long, national officer for agricultural workers, said a 'wagewatch' hotline has been set up for farm workers to share experiences and receive advice. She said, "Our members in low paid rural industries are facing [an] assault on their pay and conditions from a multi-million pound industry backed by a coalition government of millionaires. We would urge farm workers who don't yet have [union] backing to join now."  

Attempts by the Welsh Government to pass emergency legislation aimed at retaining protections afforded by the board in Wales were blocked by the UK Attorney General in August. The Welsh farming industry was divided over the subject of AWB closure; although the NFU supported abolition, the majority of other influential farm groups claimed the move will exacerbate rural poverty and effectively transfer wealth from farm workers to their employers.

Wales' position is still under discussion, as AMs have rejected the Attorney General's ruling and insisted that the emergency legislation is within their competences.