Scottish growers will see “any profit margin eliminated” because they will have to pay all workers the new National Living Wage (NLW), rather than just those over 25.
NFU Scotland said growers and farmers are “justifiably frustrated” that, because Scotland has retained the Scottish Agricultural Wages Board (SAWB), they now have to abide by a national minimum wage, a Scottish agricultural minimum wage rate, and the new UK National Living Wage.
The union has called for the Scottish government to abolish SAWB and create a parallel employment system with other sectors, as well as urging the retail sector to recognise the higher wage bills faced by Scottish growers through higher prices of potatoes, vegetables and soft fruit.
“Growers in Scotland compete directly with farm businesses in England as well as the rest of Europe and wages can represent more than 40 per cent of the operating costs of such a business,” said NFU Scotland chief executive Scott Walker.
“The living wage will see any profit margin eliminated unless Scottish growers can recover the extra cost they face through the products they sell. If this doesn’t happen, then there will be less Scottish fruit and vegetables produced.”
Walker was speaking following a meeting of Scottish growers at the NFU Scotland head office at Ingliston, near Edinburgh, where it was highlighted that their English counterparts will only have to pay the NLW to those over 25.
“It is clear from discussions that growers cannot carry the burden of higher wage bills compared to other parts of the UK without retailers recognising this through higher prices for our produce,” Walker said.
He said wage inequalities will be particularly felt in the vegetable and soft-fruit industries, which employ substantial numbers of seasonal workers and which compete directly with England the rest of Europe.
“The dysfunctional supply chain, and the price pressure being heaped on all farm businesses at this time makes attracting and keeping staff a genuine challenge as the rewards for the risk involved in farming are simply not there,' he added.
The SAWB is currently under review and NFUS has lobbied to show that it is no longer required given there are other minimum wage requirements and standards such as the Gangmaster Licensing Act.
“Scottish Government also needs to declutter the employment legislation around farming. We simply want to see agricultural businesses treated in the same way as all other employers,” Walker said.
“We will meet with retailers to discuss our concerns and to look at what can be done to secure the Scottish supply chain. And we are organising meetings for politicians on fruit and vegetable farms to help explain the impact of wage proposals on growers in Scotland.”
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