A seasonal crisis

The seasonal labour force requirements of the UK’s fresh produce industry are considerable and at this time of year, workers are now beginning to enter the country to work on the farms.

The Seasonal Agricultural Workers Scheme (SAWS) was created to allow workers from outside the European Economic Area to enter the UK to do seasonal agricultural work for farmers and growers, and almost half of the placements are for the fresh produce sector. But for how much longer?

The SAWS has existed for many years and has become a vital source of seasonal labour for UK growers. Following a wide ranging consultation and review of the scheme in 2002, it was expanded and measures were put in place to improve the operation of the scheme to the benefit of farmers, growers, and SAWS workers. The scheme is managed by Work Permits (UK), part of the Home Office, which contracts with a number of operators to administer the scheme on its behalf.

SAWS operators, such as HOPS and Concordia, are responsible for sourcing and recruiting eligible workers to take part in the scheme; assessing and monitoring farmers for their ability to provide suitable work placements to SAWS workers; ensuring the SAWS workers are treated fairly and within the law; and ensuring farmers and growers are provided with people who are suitable to do the work on offer.

Managing director of HOPS, David Sharpe, says the scheme is a reliable source of student labour. “It is a tried and tested scheme and a controlled form of labour which has set standards for the whole sector,” he says. “Many overseas workers benefit from the opportunity to earn money and gain experience in the UK fresh produce sector techniques and gain exposure to the culture and sights of the UK.”

Yet government plans to curb immigration could limit the sector’s access to this labour pool.

President of the National Farmers’ Union Tim Bennett has already warned earlier this year against this move, which could mean the end of SAWS, especially since agriculture is experiencing labour shortages. Sharpe adds the concern is that changes in the EU15’s workforce preferences beg the question, “How long will this workforce want the farm-based jobs given the previous experience in the EU? This is a worry for the sector but in response to government claims, this scheme does not have a bad record of over-stayers.”

As the scheme is intended to meet the shortfall in the supply of seasonal workers within the UK and the European Union, the number of people able to participate on the SAWS each year is limited by a quota.

The 2004 quota was limited to 25,000 places, but the government’s plan is to reduce the quota for 2005 visas by 35 per cent. This, it claims, is to reflect the changes in the work force since the May 2004 EU expansion.

Yet, says Sharpe, demand far outstrips the number of places available: “For every two SAWS places we could fill another. For example, we are restricted to 600 places but we could fill 900. Demand for workers under the scheme is as strong as ever and we will fill all SAWS places and then will need to recruit EU nationals to fulfil farm requirements.”

UK operators recruit suitable individuals, in conjunction with agencies and universities in qualifying countries, to be placed on UK farms for a maximum period of six months.

Students are warned that the work is low skilled and mainly includes planting and harvesting, on-farm processing and packing of crops such as salad vegetables, soft fruit, and flowers. Sharpe says: “Initially a worker may start with a strawberry grower and may then be moved to another farm, to ensure they work the full six months, but to also use the quota efficiently.”

In 2004 many farmers found themselves short of labour at the beginning of the season as there were problems with visa applications, says Sharpe, mainly due to embassy closures. “This year we are better prepared because many of the difficulties experienced last year were caused by certain embassies. We are not so reliant on individual embassies anymore, such as the Ukraine, which has only one embassy, and are working more with Russia and its seven embassies,” he says.

“We have invited less Ukrainians this year because of the 2004 delays since we can’t run the risk of staff not arriving on time again - last year we had no choice but to recruit EU nationals to make up the shortfall.

“We are still sourcing from the same countries - Romania, Bulgaria, Moldova, Belarus, Russia and Ukraine. Recruiting for the SAWS is still our main focus but with the new member states in the EU, we have also set up an internal programme to recruit EU nationals into a seasonal worker programme. It is run similarly to SAWS except the difference is these workers have the freedom to move between employers while SAWS workers can only work on the farm stated on their work cards.”

Although some farms have dropped the scheme, Sharpe says it is a better controlled system because of the continuous monitoring by both the operators and the Home Office. He says: “A large portion of the pool that was relied upon no longer qualifies under SAWS since May 2004 who instead need to register with the Workers Registration Scheme (WRS) to be legally employed if working for more than a month on a farm. But with WRS it is up to the individuals to register themselves to ensure they are legally able to work.”

Fruit grower Jim Pearce supports the SAWS because it avoids all the political problems surrounding WRS and he prefers the rigour of the scheme.

He says: “You know what you are getting with SAWS. Seasonal workers make up a large proportion of my workforce, so it is important I get the right people.

“The only disadvantage of the scheme is that you loose some flexibility because workers are booked in November to start six months later in May. But if it happens to be an early spring and season, you may be caught short of labour, but hopefully some workers can come earlier. In this case I just bring the work schedule forward.”

Given that wages eat into 30 per cent of his turnover, Pearce likes to maintain good relations with his seasonal workers and tries to keep them on for the full six months. He says: “Over the past five years I’ve built up relationships. I have visited the agricultural university in Belarus myself and the students there are familiar with what strawberry picking entails. It is very important to manage worker expectations before they arrive, such as the heat and accommodation, so there are no surprises. Now I have workers returning who were previously on SAWS but who now qualify for WRS.

“The WRS also has its advantages because there is a convenient and constant pool of workers available without the need to resort to gangmasters. Essentially there are no excuses for having an illegal employee, especially since accession, as there is a good pool of workers.”

Joint managing director of Tuddenham Hall, Richard Clement, also says the advantage of SAWS is that “you know what to expect under the scheme, as most applicants are agriculture students”.

He says: “We are in a better position this year compared to last year. Workers are due in two-three weeks and two thirds of them are already registered. This is a huge leap in comparison to last season, when we had no one registered at this time.”

Being asparagus and strawberry growers, Clement says they tend to get problems before the other crops because the asparagus season is earlier. However the sheer volume of paper work for the scheme is very confusing. He says: “We are getting there but the scheme still needs a lot of clarification.”

Chief executive of the 50 Club Horticulture Employers’ Association, James Eckley, says the temporary migrant workforce, such as SAWS workers, should not be confused with asylum seekers. The club was recently formed as a separate arm of agricultural employment consultants Jonathan Oatley Limited, established to increase lobbying for issues affecting the horticultural sector and to keep the sector’s profile high with government.

A recent concern for the club’s 400 farmer members is the government’s announcement of its intention to end SAWS for foreign students working on UK farms during the summer. The club is already working with SAWS operators, the National Farmers Union and the Horticultural Trades Association to pool ideas and put forward an argument against this decision.

Eckley says: “The sector would like to keep SAWS as a critical labour pool. It seems that SAWS could be a casualty of the government’s asylum and immigration agenda and current debate.” Some reports suggest the scheme will finish at the end of 2006, although the Home Office states no decision will be made without industry consultation.

Eckley says it has only been one year since the new EU member accession and as yet no trends have been established about the new workforce working under the WRS. “We are collaborating with operators HOPS and Concordia to form a plan for government consultation once their intentions are published,” he says.

He adds that SAWS is an essential provider of core labour especially since seasonal labour is a very important issue for the horticulture sector. “Its demand requirements are high, but the trend for a reducing labour pool in the last 10 years, with the changing job preferences, means it is more difficult to source temporary labour in the UK.

“Additionally the traditional European labour supply has dried up from countries such as Spain and Portugal, because the labour market in these countries has followed the UK trend,” he adds. “It is highly likely that new EU citizens’ aspirations will follow this trend in the mid-term too. As yet there is no information available as to whether the workers on the WRS will pick agriculture as the preferred industry to work in - I can only see a trend away from the sector. However in countries such as Bulgaria and Moldova agriculture still is an important sector and many students choose it for their studies.”

Eckley explains that it is a two-way beneficial situation with SAWS - foreign students are exposed to modern agriculture techniques and systems, which they can take back, as well as seeing how life has evolved in a democratic society and see what they can aspire to. He says: “It gives them first hand experience to witness what is achievable. And of course there are the financial benefits gained which help to complete the studies.”

But where do operators such as HOPS and Concordia who recruit workers under SAWS stand under the new legislation and the requirements of the TLWG?

Chairman of the Ethical Trading Initiative, Dan Rees, says the TLWG Code applies to workers recruited under SAWS and could be used by operators as a quick reference to what the law requires. He says: “The TLWG audit methodology however only covers labour providers who have a direct employment relationship with workers. It does not cover SAWS operators because they do not have an employer-employee relationship with the workers they place on farms.”

Rees adds: “This is important because farmers will also be covered by the new licensing requirements. Under the Gangmaster Licensing Act, passed in June last year, it will not only be an offence for labour providers to trade without a licence - it will also be an offence for labour users to employ labour providers without a licence. As more and more labour providers register and are audited, it should be easier for labour users to use only labour providers that have completed an audit. This will encourage reputable labour providers to register and be audited.

“However, the audit methodology could be adapted to cover these kinds of labour providers. Operators of the SAWS scheme will definitely be covered by the licensing requirements to be implemented by the GLA.”

Eckley says that SAWS operators will likely need to register but will meet the criteria easily because they are already adopting best practices. “The exact details aren’t known as yet but SAWS operators are at the top end of the scale in terms of quality and cost effective service to growers and employers, given they represent the Home Office.

“Worker welfare is already a strong point and they are used to dealing with pastoral and compassionate issues for a long time now adopting a strong moral view.”

Rees says the TLWG code will have an effect on seasonal workers (non-SAWS) in the fresh produce industry. “For the first time, all the legal requirements for labour providers in the agriculture and fresh produce industries are now listed in one place, and for the first time, there will be a systematic check on the conditions of temporary workers.

“This means it will be much harder for disreputable businesses to continue to operate. Of course, we are not naive enough to imagine that the TLWG code - or even the licensing system when it comes into force - will be a panacea for all labour abuses. But it is a significant step forward and already we are hearing of positive changes being made by labour providers who have gone through the TLWG audit,” he says.

Farmers, as users of temporary labour, are covered by the Code of Practice and may, as a result of inspections, be required to make changes to their workplace relating to certain aspects of the code. This will be particularly true for health and safety aspects of the code, which tend to be mainly workplace-specific.

The TLWG is recommending that farmers and other labour users find out whether their existing labour providers have registered their intention to comply with the code, and if so, when they will be audited. They will need to check whether their labour providers need their farm to be part of the audit, so they can prepare.

According to Eckley the SAWS scheme is very important and its importance will increase: “Although there are no statistics as yet, the UK’s seasonal workforce is on the decline as people are looking for secure work. The SAWS quota will be decreased to reflect the changes to the European workforce now in operation under the WRS but the two schemes should complement each other, rather than replace one another, as we still don’t know what effect the gangmaster regulations will be.”