Farm wages rules putting Scotland at disadvantage, union warns

NFU Scotland has urged the next Scottish Government to scrap the Scottish Agricultural Wages Board within 12 months, warning that the system is putting farms at a competitive disadvantage.

The union made the call at the, Royal Highland Show where ministers, MSPs and industry leaders are gathering this week.

It wants the new administration to abolish the board within the first year of the newly formed parliament and modernise Scotland’s agricultural employment rules.

The Scottish Agricultural Wages Board sets minimum pay and conditions for agricultural workers in Scotland through the Scottish Agricultural Wages Order.

NFU Scotland argues the system is outdated and creates an extra layer of regulation for farm businesses already facing significant economic pressure.

The equivalent Agricultural Wages Board in England was abolished in 2013, but Scottish agriculture continues to operate under a separate statutory framework.

The union said this leaves Scottish farmers competing in the same marketplace as businesses elsewhere in the UK, but under different employment rules.

It said the system also creates unnecessary complexity alongside the Scottish Government’s Fair Work First requirements and wider changes to employment legislation.

NFU Scotland believes removing the additional regulation would support recruitment, encourage investment and help create a more level playing field with competitors elsewhere in the UK.

NFU Scotland Vice President Robert Neill said the union supported fair pay, but argued the current structure was no longer fit for purpose.

“Scottish farmers support fair pay and good employment practices, but we also need a system that allows businesses to compete and grow,” he said.

“The Agricultural Wages Board is a relic of a different era. Farmers in Scotland are competing in the same marketplace as businesses elsewhere in the UK, but under a different set of rules.”

The union believes agriculture should operate within the same statutory employment framework as every other sector of the Scottish and UK economy.

Mr Neill said policies should help farms grow, attract new entrants and support rural communities.

“If we want a profitable farming sector that can attract new entrants, create jobs and support thriving rural communities, we need policies that encourage growth rather than hold businesses back,” he said.

Agriculture underpins Scotland’s wider food and drink sector, which is worth around £19 billion to the economy and supports approximately 130,000 jobs.

NFU Scotland said the scale of the sector showed why employment rules must support, rather than restrict, farm businesses.

The union is calling on the new Scottish Government to act within its first year and disband the Scottish Agricultural Wages Board.

It said doing so would bring Scottish agriculture into line with employment arrangements operating elsewhere in the UK.