NFU wins turnaround on AWB holiday pay
The NFU has saved growers and farmers millions of pounds after convincing the Agricultural Wages Board (AWB) to reverse a decision on the calculation of holiday pay.
The NFU objected strongly to the AWB's decision to modify the calculation of holiday pay (by including the voluntary overtime over the previous twelve weeks)*. This decision was adopted during the confirmation meeting and resulted in a modification of the current order (in place since the 1st October 2006). In a formal letter to the AWB, the NFU expressed its intention to issue legal proceedings against the decision.
At an emergency meeting of the AWB today in London, the NFU presented solid economic evidence which showed that, in addition to the significant increase in wage costs, the decision would be a huge administrative burden for employers and would damage labour relations.
In an unprecedented move, the AWB has reversed the decision. The AWB is to meet for a confirmation meeting, after the consultation period, on November 10, after which the amended Agricultural Wages Order will be brought into force.
Bob Fiddaman, employment spokesman for the NFU, said: "This is excellent news for the industry. We stated from the start that any significant change to the Order should be dealt with during the substantive negotiations and not slipped in at the last moment. Getting the emergency meeting was a win for the NFU - successfully reversing the decision is a huge victory.
"The situation was not tenable. It would have discriminated between workers and between employers, made it difficult for employers to calculate what each of their workers is entitled to in holiday pay, and added significantly to wages' costs."
The NFU is reminding farmers and growers that despite these latest developments, the Agricultural Wages Order, as adopted in the last confirmation meeting, came into force on October 1, 2006.
A summary of the main elements of the order, as it stands currently, is available on: http://www.defra.gov.uk/news/awb/awb0602.htm
Notes to editors:
1.* Under previous regulations, horticulture and agricultural workers had their holiday pay calculated based on their basic pay plus any guaranteed overtime. The latest wages order changed this and meant holiday pay was to be based on basic pay plus any overtime over the previous twelve week period, including both guaranteed and voluntary overtime.
2. Currently, 98 per cent of the workforce has their pay governed by the standard Working Time Regulations. This system bases holiday pay on basic pay plus guaranteed overtime like the system used by the AWB until October 1 2006 (and that will be reintroduced thanks to this decision).
3. Only farm and horticulture workers - two per cent of the workforce - have pay controlled by the AWB.
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