Representatives of agricultural employers and employees have reached an agreement to boost training and skills amongst agricultural workers.

The two sides, sitting on the Agricultural Wages Board, agreed to restructure the workers grading system. The new six-grade structure will create a wage differential between the previous standard and craft grades. The new Grade 3 will reward workers for developing higher skill levels.

The two sides also came to a financial agreement on the rate of increase in the hourly rate for all six grades. The increase to £5.05 per hour in Grade 1 mirrors the increase in the national minimum wage (the age differentials in Grade 1 will remain). Grades 2, 4, 5 and 6 will increase by 3.4%, while grade 3 will be a 6% differential over Grade 2.

They failed to agree on the issue of additional days of paid holiday and a commitment was made in the board to review Sunday working next year.

NFU employment issue spokesman, Bob Fiddaman, said: "I am delighted at the positive signals this grading agreement sends out to the industry. Both sides have shown that it is their intention to look to the future. It is in all our interests to attract more people into the industry, develop their skills and reward progress."

He added: "While the financial settlement is at the top end of what the industry can realistically afford, I believe the overall package, with the addition of the new grading structure, will benefit the industry in the long run."

The confirmation meeting of AWB agreement will take place in July.

The new rates for agricultural workers would be:

• Grade 1 £5.05 per hour (differential rates for under 18s, under 17s and under 16s are maintained, mirroring the current structure)

• Grade 2 £5.58 per hour

• Grade 3 £5.91 per hour

• Grade 4 £6.58 per hour

• Grade 5 £6.98 per hour

• Grade 6 £7.53 per hour

There will be no age differentials for Grades 2 to 6.

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