Overseas labour regime isn’t working for farmers

A new report has warned that Brexit, the coronavirus pandemic, fluctuations in the value of the pound sterling, the improvement of the economies of countries in Eastern Europe and new immigration laws will exacerbate labour shortfalls in the coming years.

A study commissioned by the Worshipful Company of Farmers looked at labour issues existing for both seasonal and more permanent roles, and concluded that the shortage of workers could lead to increased reliance on imports and farms going out of business or relocating abroad.

Red flags were raised around the UK’s new immigration policy and how it is disadvantaging the farming industry. The report calls for farm labour requirements to be reviewed frequently, and the definitions of, and value placed upon, ‘skilled’ and ‘unskilled’ workers to be revisited and the points-based system adjusted accordingly to prevent the farming industry from being undermined.

The SF spoke to James Porter of East Scryne Farm, Angus, well known for its soft fruit production. He warned that picker shortages currently being felt by the soft fruit, flowers and bulbs sector are only going to get worse as the summer goes on and argued that the seasonal agricultural workers scheme (SAWS) isn’t fit for purpose to meet those shortages.

“Since Brexit, All EU workers have had to apply for settled status by June 30 to stay and work in Scotland, but many will not receive this in time or will choose to travel home, leaving a gaping hole in our picking workforce. We are also going to be up against the hospitality and construction sectors who hope to be fully up and running this summer and attract a high volume of EU workers.”

Mr Porter doesn’t believe SAWS is the answer to meeting this gap in labour supply – not only is it capped at 30,000, but he stressed that it is too expensive and bureaucratic.

Currently, non-EU workers who apply through the scheme have to pay £244 to obtain a visa and this doesn't include transport and insurance costs. Employers are forking out £700 plus vat to register with labour providers, then adding on £236 plus vat per picker thereafter. James pointed out that for the 100 pickers which he has recruited through the scheme, this has cost him around £25,000 – adding that the bill will be much higher for larger farms. There are concerns in the sector that employers may also in the future have to pick up the visa tab too, which would set employers back around £500 per picker – and that’s before any wages are paid.

“There was a ready-made model in the previous scheme which worked perfectly when run through Defra,” continued James. “Currently pickers who come through SAWS are tied to their original farm, which restricts the freedom of the pickers to move between farms if they aren’t happy. The scheme needs simplified to remove these restrictions and one suggestion might be to offer a multi-season ticket so we can avoid the same bureaucratic challenge and costs year on year.”

The Home Office is keen to develop a homegrown workforce to fill roles, however it has been difficult in the past to attract locals into the sector. Last year’s ‘Pick for Britain’ campaign attracted a huge amount of interest from furloughed workers during the pandemic, but in practice only equated to around 11% of the picking workforce coming from the UK.

Dr Caroline Nye, who conducted the WCF study, said: “It should not be assumed the rise in unemployment resulting from the Covid-19 pandemic will automatically create interest in seasonal worker roles. The squeezing of price margins by supermarkets and a consumer base accustomed to cheap prices currently prevent worker pay from going above a certain level. The combination of low pay and physically challenging and repetitive work is not an attractive option, nor are the conditions currently associated with the work. Farms will need to become more competitive, flexible and attractive places to work in order to drive recruitment. This applies to both domestic and migrant workers.”