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Farm wages

Last post Mon, Jun 23 2008 13:39 by grazing nut. 18 replies.
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  • Mon, Jun 16 2008 16:42

    Farm wages

     

    This might make for an interesting discussion - given that there is a mix of farm owners and farm workers on this forum...

    I wondered what your views were on the Agricultural Wages Board and the level of wages they agree each year. The union which represents farmworkers is seeking a 6% pay rise this year on the grounds that it says agriculture and horticulture are facing an unprecedented labour shortage which could lead to a full blown food crisis at home and abroad.

    Unite is asking for an increase of 6% across all grades and other improvements to terms and conditions. Chris Kaufman Unite national secretary for food and agriculture said; 'With an ageing workforce - half of all farm workers are over 55 and a quarter over 65 and the trend for migrant workers (who have filled some gaps) to return home, farmers will find it impossible to provide food security at home and help for those starving abroad.

    ""But farm workers have voted with their feet in recent years with fathers advising their children not to follow them into farming because they cannot get a living wage.

    "Both sides of industry agree that the only salvation is to attract young workers into the industry - but for that the NFU must put its money where its mouth is. With rocketing land values and price increases farmers have never been better able to pay the bill for skill."

    I haven't spoken to the NFU, but I am sure it will take issue with Mr Kaufman's final sentence. Given rising input costs etc it is a bit shaky - particularly in the livestock sector. The NFU's view is that the AWB is no longer needed and it says that many employers pay far more than the rates set by it anyway.

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  • Mon, Jun 16 2008 19:14 In reply to

    Re: Farm wages

    I reckon the wages board is irrelevant now there is a minimum wage.The minimum wage sets a level to be paid to the worst workers who you dont care if they stay or not.the best workers are earning upto double that and rightly so.

  • Mon, Jun 16 2008 23:10 In reply to

    • bonehead
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    Re: Farm wages

    I'll put my money where my mouth is, agriculture is hard work in all sectors, from managerial to the labourer, the industry is at times on its knees, attacked from all sides and victimised by the press...but still we pull through. Why because of the sheer hard graft, determination and belief and pride in our jobs, 

    Farming to me is more than a job, it at times to my peril becomes my life, but still i go on.

    But this is my view concerning wages; show me an industry where you have to be able to get round fabricating, plumbing, engineering, precision driving, stock husbandry, carpentry, fencing, agronomy, labourous manual graft, mechanic, builder, team player and you will not get many results, now this is my point, take most of the skills you posses from my list and look at the wage stucture in that particular corresponding industry and it will be a better wage for a guess.

    My point is, I for one do not believe that wages in the industry are good but poor and represent that what a good person desereves for their skill; but whilst i say that, i understand that money from our consumers dont get passed onto our employers, usually the middleman somewhere along the chain, so in turn they cant pass that on, so its a no win situation for both the emplyee and employer.

    The reason I stay in agriculture is not because I was born into the industry or money, but because of my passion, nothing more, now that is priceless, if it was money alone I would have left long ago.

    Happy New Year!
  • Tue, Jun 17 2008 10:16 In reply to

    Re: Farm wages

    Very eloquently put.

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  • Tue, Jun 17 2008 11:07 In reply to

    • mildred
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    Re: Farm wages

    Can only agree with bonehead, Farm workers are paid nowhere near what they deserve in respect to the jobs they're asked (and normally expected) to do.

     I don't think these big farming companies are helping matters with what they think they can get away with for paying their workers. A very poor salary was the exact reason why a left Se**ry Farms. I'd say money is what motivates at least 50% of most people going to work. If the money isn't matched to the job then people wont hang about.

  • Tue, Jun 17 2008 11:44 In reply to

    Re: Farm wages

    Perhaps farms need to start going into some kind of profit share arrangements with their workers. It seems like people accept that there are times when an employer will struggle to up the wage bill because of a situation out of their control. But when times are better - do they share some of benefits with their workers? I know it is the employers that is carrying the risk etc but if people want loyalty and skilled workers then perhaps they have to start thinking of slightly more novel reward packages.

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  • Tue, Jun 17 2008 13:32 In reply to

    • AllyR
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    Re: Farm wages

             I quite agree, Isabel. We have always used bonuses in the past and it is actually very rewarding being able to give them. However, we have to be very careful here and have a sensible plan because you can never, never expect an employee to take a cut in earnings if things don't go so well. For that and other reasons I see "profit sharing" as a special case and that other methods where possible are better. We have the best workforce in Britain and it is high time the farm-income prices reflected the effort that goes in to producing our products.

    ps. an excellent contribution from Bonehead (yet again). If I get time I will add a few skills to his list later.

    When in Rome, do as the Romans do.
  • Tue, Jun 17 2008 13:46 In reply to

    Re: Farm wages

    When you get the time - I'd be interested to know how you structure your bonuses. Is it something you do on an ad hoc basis or is a framework set out in advance?

    I probably used the words 'profit share' too carelessly. I think a bonus system was probably what I had more in mind.

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  • Tue, Jun 17 2008 13:54 In reply to

    • mildred
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    Re: Farm wages

    I'll add a few of jobs that I have been asked to do as a Farmer Worker, on top on the ones from Bonehead (although this could be a new thread problem!?!)!!

    • Painter
    • Roofer
    • Stable hand
    • Groundsman
    • Window cleaner
    • Gardener
    • Baby sitter (?!?!)

    Isobel - I fully support your idea of profit share and it was one of the ideas I had when I was a trainee farrm manager, as a way of rewarding farm staff. Problems could arise on a mixed farm though i.e 1000 acre arable farm with 2000 fatting pigs, main tractor driver may argue why he should share his bonus with pigman where pigs are making a lose etc.

     

    other ideas that should be the norm in my mind include 

    • Thoughtful Christmas package
    • Days out (cereals, county shows etc)
    • End of harvest evening out
    • Regular time off (not making someone feel bad when its there day of and there is possibly spraying to do etc)
    • Heating/fuel/council tax paid

     The list is endless!! All the above should be considered regardless of profit the farm is making in my mind. 

     

  • Tue, Jun 17 2008 20:22 In reply to

    • matty s
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    Re: Farm wages

    mildred:

    other ideas that should be the norm in my mind include 

    • Thoughtful Christmas package
    • Days out (cereals, county shows etc)
    • End of harvest evening out
    • Regular time off (not making someone feel bad when its there day of and there is possibly spraying to do etc)
    • Heating/fuel/council tax paid

     The list is endless!! All the above should be considered regardless of profit the farm is making in my mind. 

    Good idea! The gaffer on the stock farm is hosting a BBQ this weekend, mainly for the people who have helped him , me and a few farmers and he is inviting the shoot - clay pigeon shoot, followed by BBQ and some beers - cant say fairer than that - the sausages are also produced from our own stock. I agree totally with bonehead too, there is a array of different jobs to do on the farm and everyones expected to help out - i have been working with the arable team but we spent the past 2 days at the dairy helping the stockman.

    **Check out Matty's Blog for my latest ramblings!!**



  • Tue, Jun 17 2008 22:11 In reply to

    • AllyR
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    Re: Farm wages

    Isabel Davies:
    When you get the time - I'd be interested to know how you structure your bonuses. Is it something you do on an ad hoc basis or is a framework set out in advance?

               I don't do bonuses now as I have no full time employees. The bonuses were paid on an annual basis. A minimum bonus was always given; that way an employee knows what he will always get and receives a nice addition when profits are good. The basic bonus was structured in with the job and any extra is at the discretion of the employer. A bit like the share dividend.

                I think that proifit sharing is a very dangerous method of rewarding an employee as it so often leads to discontentment and all sorts of problems. I dare say it will work in special cicumstances buit there are far better ways.

                Mildred's perks are a great method of rewarding an employee but they are not as easy as it seems. The Tax Man will be very interested in these.

     

    When in Rome, do as the Romans do.
  • Tue, Jun 17 2008 22:49 In reply to

    • bonehead
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    Re: Farm wages

    I agree with AllyR, bonuses could become dangerous and have the opposite effect, if you have worked hard all year and market forces work out of the famer/employers (tell me something new) control and a bonus or reward cannot be given then a feeling of resentment and low moral could be the end result,

    I believe that as long as both employee and employer know the stucture of the wages and they dont fluctuate then exterior forces cannot bring in that dividing wedge, as it was pointed out, when all is said and done it is the employer who ultimatley takes the risk so its them who have more at risk so when markets are good let them reap what they sow. I'll stick to my fish n chips and a tinnie at xmas for my bonus! Hmmmmm.....

    Happy New Year!
  • Wed, Jun 18 2008 7:27 In reply to

    • flowerdrum
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    Re: Farm wages

    Mr Flowerdrum worked on a commercial pig farm and kept getting payrises. Got to the point he had to tell the owner to stop! We had other perks, we had the use of a field for veg growing, use of a wood for tree chopping (his and our advantage, we got the wood he got his woodland management payment), If we had had a diesel car then we could have filled up for nothing too. (proper diesel not red)

    He enjoyed the job, shame he got ill. :-(

    Just give me land, lots of land, with the starry skies above....don't fence me in.
  • Wed, Jun 18 2008 9:46 In reply to

    • mildred
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    Re: Farm wages

    AllyR:
    Mildred's perks are a great method of rewarding an employee but they are not as easy as it seems. The Tax Man will be very interested in these

     

     Apart from the council tax/heating incentive bit, why would the tax man be interested in any of the others???

  • Wed, Jun 18 2008 10:08 In reply to

    Re: Farm wages

    The tax man is always interested ! Big Smile

     

    I guess because those perks could still be interpreted as payment in kind.

     

    By the way - here is what has been agreed at the negotiations:

    Three days of negotiations at the Agricultural Wages Board have ended in a settlement of 4.3% for grades 2-6 for farm workers and an increase breaking the link with the national minimum wage lowest entry level grade 1 (of 4%).

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  • Wed, Jun 18 2008 13:24 In reply to

    • AllyR
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    Re: Farm wages

           Sorry, Mildred, I was a little specific there. I only meant to highlight that care has to be taken with perks. Isabel has rightly highlighted the benefit in kind problem. The ones you have mentioned like, days off  and Christmas gifts should be okay and are excellent ways for an employer to show his/her appreciation. Wherever the bills are put through the farm account it is well worth having a discussion with the accountant to make sure it is okay.

    When in Rome, do as the Romans do.
  • Sun, Jun 22 2008 21:19 In reply to

    Re: Farm wages

    It is true in the Dairy sector that herdmanagers in this country are worth their weight in gold, and wages or salarys are being negotiated away from AWB, though overtime is based round these negotiations. The dairy farmer who wants to keep a good herdmanager has got to pay well and use bonuses as incentives, ie incalf bonus at p'ding or calves alive at 5 days bonus. These incentives keep the man on the jobs concentration and enthusiasm, but the dairy farmer in this country has got to look at NZ to work out how to keep staff and also to keep the young interested by using the share farming or contract farming route, letting them earn a share of the profits by investing in the business,their is nothing like a bit of debt to keep the mind focused and to work harder to achieve their goals.Many herdmanagers are considering moving abroad to seek their fortune because the British dairy farmer cannot seem to grasp this way of farming.

  • Mon, Jun 23 2008 7:41 In reply to

    Re: Farm wages

    So what if you are 'self employed' like me? You don't see any wage increase, bonuses, or the like am I a mug?

    Not every day is baaaaad.....
  • Mon, Jun 23 2008 13:39 In reply to

    Re: Farm wages

    Being self employed is difficult, but putting your prices up at the same time as a AWB increase has got to be your decision, you need to keep your prices in line as I assume you are concerned work will dry up. With all energy bills etc rising, nobody could argue the fact you need to live too.If there not willing to give you anymore money then you just do less hours at a higher rate, and look elsewhere for he shortfall in hours as you are self employed. 

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