Last week's news that Peers managed to temporarily derail government plans to abolish the Agricultural Wages Board has been greeted with optimism by unions opposing the board's closure. However, these groups warn that the board's future is still under threat.

The AWB negotiates the pay and conditions of over 150,000 workers across the UK. Although Defra claims abolishing the board would reduce bureaucracy and bring agriculture into line with other minimum wage industries, opponents of the government's plans maintain that minimum wage legislation will not be able to replace many of the board's functions, including graded pay.

Following a vote in the House of Lords last week, the bill which will decide AWB's future has been held at the report stage until the end of February, or early March.

Mick Antoniw, Labour AM for Pontypridd this week spoke out about the potentially damaging effects of AWB closure. The Welsh government has been highly critical of Whitehall's handling of the matter, with AMs accusing the UK government of "underhand" tactics before Christmas.

Mr Antoniw said earlier this week that the closure would see many millions of pounds being transferred from the hands of farm workers to their employers over the next 10 years. This would be through reduced pay, loss of sick pay, annual leave, rest breaks and rules governing tied in housing.

The Welsh AM said Defra's own figures confirm that across the UK the worst case scenario is £279.7 million pounds being taken away from agricultural workers over the next decade and at best £259 million.

As a result of the Spat between Westminster and Cardiff over the AWB's future, the Welsh government has mooted setting up its own wage board, in an effort to protect Wales' 13,000 farm workers. The devolved governments of Northern Ireland and Scotland have both retained their wage boards.

Mr Antoniw said on Tuesday (22nd January) "Abolition of the AWB will be a disaster for rural communities in Wales. It will hit the lowest paid, in particular agricultural workers. It will send a message that Welsh Agriculture is closed for business. There is already a skills shortage in rural communities.

"If anything we should be improving terms and conditions, creating security of employment, a career pathway and improved skills and training. Under abolition, millions of pounds are being taken away from rural workers and transferred in large amounts to the large landowners and horticultural businesses."

Much of the Welsh farming community supports Mr Antoniw's views. The Welsh Young Farmers and Farmers' Union of Wales have both said AWB closure would increase both poverty in rural Wales and bureaucracy for Wales' agricultural employers (in particular those in smaller businesses), as each employer would have to negotiate rates of pay.

An FUW spokesperson said, "The union has always supported the work of the board in recognising the unique nature of farming and to ensure that terms and conditions reflect the need to attract young, highly-trained individuals into the industry." Mr Antoniw added, "In Wales, abolition will create a new burden of administration and responsibility upon smaller employers who have not called for the abolition of the AWB. The impact of abolition will be to increase poverty in rural areas and to increase downward pressure on other forms of employment."

However, the National Farmers' Union and NFU Cymru maintain AWB's remit has been overtaken by more recent employment legislation. An NFU Cymru spokesperson added that the union sees no reason for a new board to mediate farm employment conditions in Wales.  

A Defra spokesperson added, "Removing this anachronism will create the right conditions for businesses to thrive and create more jobs for the workforce, which will generate more spending in local economies."