Agricultural Wages Board: News release - Agricultural Wage Negotiations 2006 - AWB2/06
11 September 2006
The Agricultural Wages Board for England and Wales met on September 8 2006 to consider representations made to its further proposals (made on 28 July 2006) for a new Wages Order to come into effect on 1 October 2006. The Board considered the representations made and decided to make an Order as proposed.
The Board therefore confirms that with effect from 1 October 2006:
- The minimum rates for Grades 2, 4, 5 and 6 will be increased by approximately 2.9%. This increases the basic minimum rate for an adult standard worker from £5.58 per hour to £5.74 per hour.
- The minimum basic rate for a Grade 3 worker will increase by 6.8% from £5.91 per hour to £6.31 per hour.
- The minimum basic Grade 1 rate for workers over compulsory school age will increase by 5.9% from £5.05 to £5.35 per hour in line with the National Minimum Wage.
- Other rates and allowances will increase by 2.9%.
- The Grade 1 Basic Trainee grade will be re-named “Initial Grade”.
- Initial Grade workers will become entitled to receive training to meet Standard Worker requirements after 30 weeks continuous employment with the same employer.
- Age-related pay differentials will be abolished with the exception of the rate for Initial Grade workers of compulsory school age and Apprentices in the second year of their Apprenticeship.
- Appendix 2 will be replaced with specific mandatory and optional competences required and Appendix 5 will be deleted.
- The Young Trainee category will be named “Trainees” and the scope will be amended to reflect changes to Government training schemes .
- The Flexible Worker category will no longer have a minimum age requirement of 18 years of age.
- The upper age limit for Apprentices will be removed.
- The sections on Sundays and Holidays and Other Leave in the AWO will be merged and simplified in a single paid holidays section.
- Total annual holiday entitlement will be increased from 22 to 23 days a year for a full-time worker working 5 days a week (and other workers will receive pro-rata benefits).
- All workers will receive appropriate entitlement to paid leave relating to Bank and Public holidays which fall on a day when the worker does not normally work.
- Holiday pay will be calculated on the basis of gross actual earnings for all hours worked excluding any non-pay benefits received and where pay varies from week to week will be averaged out over the 12 weeks prior to the worker taking her/his holiday.
- For workers with a contract of employment starting on or after 1 October 2006 Sunday work will not automatically attract the overtime premium only by virtue of the fact that work is being done on a Sunday.
- The definition of overtime in the Order will be simplified in order to ensure consistency with the changes arising from the Sunday working provisions.
- Work on agricultural pensions will continue in the light of the publication of the Turner Report and the government White Paper “Security in Retirement”.
- The “other accommodation” offset will increase to £4.15 per day.
- It will also consider allowing paid leave in cases of domestic emergencies (e.g. medical or hospital appointment).
- Entitlement to Paternity leave will be removed and replaced by a £50 grant to male and female workers upon the birth or adoption of a child.
Other technical and consequential drafting amendments will also be made.
Notes for Editors
1. The Agricultural Wages Board is constituted under the Agricultural Wages Act 1948. It is an independent body with 21 members. Eight members representing employers are nominated by the National Farmers' Union and eight members representing workers are nominated by the Transport and General Workers' Union. There are five Independent Members who have been appointed jointly by the Secretary of State for Environment, Food and Rural Affairs and the Welsh Assembly Government.
2. The minimum rates of pay specified in the Wages Order apply to any worker employed in agriculture anywhere in England and Wales. Where a worker's contract provides for payment at piece rates the worker's wages must not be less than the appropriate minimum for the actual hours worked.
3. The current minimum rate for the standard 39-hour working week applicable to Full Time Standard adult workers is £217.62 (£5.58 an hour).
4. With effect from 1 October 2006 the National Minimum Wage is due to increase to £5.35 per hour for workers aged 22 and over. The development rate for workers aged 18-21 will increase to £4.45 per hour. The rate for 16-17 year olds will increase from £3.00 to £3.30 per hour. The Board cannot set a minimum rate which is below the National Minimum Wage.
Page last modified:
13 August 2007
Page published: 22 March 2005