The NFU has informed the AWB that it intends to bring a legal challenge to the Agricultural Wages Order which is due to come into force on 1 October 2002.

The challenge will be based around the decision by the AWB to confirm the Order at its meeting on August 29.

This decision was taken despite no employers' representatives being present. The NFU representatives who act for employers had resigned earlier in the meeting following the rejection of their final offer to reach a fair settlement.

The award that was confirmed will add £100m to the wages bill of farmers and growers at a time when the industry is on its knees.

NFU president Ben Gill said: 'We have no option but to challenge the legality of the Order. We made fair and reasonable offers at the negotiations which were rejected.

'We had offered the maximum that the industry could afford and do not accept that the Order has taken appropriate account of our ability to pay.

'This is an exceptional action for us to take and that reflects our genuine belief that this will do significant harm to the industry. This Order will mean the closure of many businesses and the export of thousands of jobs to other parts of the EU where wage rates are markedly lower.' The AWB is unique in setting wage rates for an industry, despite the introduction of the National Minimum Wage.