Incensed by Whitehall's "underhand" tactics in forcing through the closure of the Agricultural Wages Board in England and Wales, the Welsh Government launched a consultation into setting up its own pay board on Tuesday.

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Welsh Ministers reacted furiously in December, when the Coalition government in London added AWB legislation to the Enterprise and Regulatory Reform Bill, instead of a Public Bodies Bill, allowing Defra to circumvent consultation with Cardiff, where ministers were in favour of retaining the wage board. Their anger increased earlier this month when the Bill passed through the House of Commons (its first reading with the AWB amendment) without the opportunity for discussion.

On Tuesday, Alun Davies, Minister for Natural Resources and Food, announced in the Senedd that the Welsh government will consult on setting up a similar body to protect Welsh agricultural workers.

If successful, the new wage board would offer protection for 13,000 workers in Wales, though around 140,000 more will still suffer as a result of AWB dissolution in England. The devolved governments of Scotland and Northern Ireland have voted to retain their wage boards.

The Coalition first announced plans to dissolve the wage board in 2010, arguing that this would reduce bureaucracy, bring pay in agriculture into line with other industries governed by national minimum wage regulation and end a 'one size fits all' approach to a diverse industry. However, critics have said that closure will in fact amount to a transference of wealth and an erosion of workers' rights; hundreds of millions of pounds in wages, sick pay and provisions will be taken from workers' hands and retained by their employers over the next ten years, according to figures in Defra's consultation documentation.

The rest of England's wage boards were scrapped by the Thatcher government in the 1980s, but the AWB was preserved out of a recognition of the agricultural exception (namely its characterisation by low pay, long hours, dependence on fickle weather and animals, isolation and danger, which are all subject to consideration under the AWB's remit). Although AWB closure was backed by the NFU in England, the Farmers' Union of Wales and Welsh Young Farmers' Federation opposed Defra's plans.

Speaking in the National Assembly on Tuesday, Alun Davies said, "Last week, against the express wishes of the Welsh Government, the UK Government moved forward to the next stage in the process of abolishing the Agricultural Wages Board for England and Wales. I believe this position is flawed and could have serious implications for agriculture and rural development in Wales."

He continued, "I am also disappointed by the way the UK Government has chosen to abolish the AWB. By seeking to abolish it through the Enterprise and Regulatory Reform Bill, the UK Government has quite deliberately sought to circumvent the Public Bodies Act provisions which are agreed between the UK and Welsh Governments as the mechanism for dealing with the UK Government's proposals to abolish public bodies for England and Wales. In my view this was no more than a tactic to avoid the requirement for Assembly consent for the proposed action."

The minister said he remains a "determined" supporter of the Welsh farm industry, and will therefore support moves for a wage board to be set up in the country, which he believes "would continue to support and enhance the effective functioning of the agricultural sector." He added, "I would urge farm workers, rural communities and others affected by the UK Government’s actions to share their views so we can ensure the best way forward for Wales."

The Welsh government consultation will examine three potential courses of action:

• Do nothing
• Legislate to maintain the functions of the AWB in Wales
• Create a non statutory advisory board.

The full consultation document will be available on the Welsh Government website from Wednesday 1st May at www.wales.gov.uk/consultations/

In January, when the debate over AWB closure reached fever pitch as the containing legislation was due to pass through the Hosue of Lords, Labour AM Mark Antoniw accused the Westminster government of using "underhand" tactics to push through AWB closure, which had faltered since first being mooted in 2010 due to high profile support for the board's retention. Mr Antoniw said "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."