The issue of labour is one of the great talking points in horticulture. For years, growers have fretted over diminishing Seasonal Agricultural Workers Scheme (SAWS) numbers, while succession planning remains a hot topic among ageing owner-managers.
At least this year things are looking positive so far, with labour availability reportedly good and many forecasting a stable situation for the short term. “Although there are still six months to go, we don’t anticipate any problems this year,” says Philip Hudson, the NFU’s chief horticultural advisor.
An NFU survey revealed that 91 per cent of fresh produce companies had no problems recruiting seasonal labour in 2009. This is in marked contrast to 2008, when just 38 per cent of companies reported no difficulties.
The soft-fruit sector, which has endured significant labour shortages in the past, has also had a better time of it this year. “Labour availability at the moment is good for all crops, including the soft-fruit sector,” says Laurence Olins, chairman of British Summer Fruits. “The economic situation in some eastern European countries isn’t so good at the moment and sterling against the euro has also shown an improvement.”
Soft fruit remains a labour intensive crop, but many growers are investing in table tops and picking rigs and are looking to reduce their labour requirements. Olins claims that although the current situation is encouraging in the long term, soft fruit producers will be reducing their labour demands further. However, as soft fruit is a hand picked crop, he says there will always be a need for labour.
Although there do not seem to be any problems recruiting staff, Nigel Jenney, chief executive of the Fresh Produce Consortium, points out that the number of eastern European workers has reduced by around 10 per cent as some have decided to return to their home countries. And HOPS Labour Solutions’ general manager Jimmy Davies says the poor economic climate in some source countries has resulted in high numbers of applicants that are not always suitable. “This has increased the work required to select the right candidates for the positions we have available, however it has meant sufficient numbers can be found,” he adds.
Other key concerns are ever increasing expectations from workers and retention problems as people leave farms for employment in other sectors or return home.
Terry Waite, general manager of Vital Recruitment, points out that some east European workers are becoming more choosy. “I’ve heard that those who have worked in the UK for a couple of years and have gained experience in the packhouses wouldn’t necessarily want to go back into the fields,” he explains.
Waite agrees that the labour situation is currently stable but he says the implementation of the Agency Workers Directive in October 2011 will set new challenges for the fresh produce sector.
Labour availability in the fresh produce sector has improved in the last two years but there is no room for complacency, adds Rob Orme, chief executive for Concordia. “The industry has got to keep an eye on the situation - SAWS is due to finish at the end of 2011 and there might be enough labour if the economic situation remains similar to what it is now,” he explains. “However, if it doesn’t, then a replacement to SAWS is needed or there could be a return to the situation in 2008, when some farmers had to leave crops in fields because there weren’t enough workers to pick them.”
Under SAWS, 21,250 low skilled workers and students are allowed into the UK for up to six months to work on farms. Concordia anticipates a relatively straightforward labour situation for the next 12 months, but there could be changes for horticulture after 2011.
Though some insiders are confident that the SAWS agreement will be renewed under the coalition government, Davies insists it’s not a done deal.
“We must continue to lobby the government and highlight that SAWS is well managed and controlled by government and based on a quota,” he says, adding that there is potential for the SAWS model to be copied by other industries with similar requirements to agriculture and horticulture.
In its manifesto, the Conservative Party pledged the importance of securing seasonal agricultural labour for the British horticultural industry and growers say it’s important that this remains a priority. As the coalition government makes further inroads into cutting the UK deficit, the fresh produce industry is keeping a close eye on events at Westminster. Certainly, the scrapping of Regional Development Agencies has raised concerns, while immigration remains a hot topic among those in power.
Home secretary Theresa May recently announced a temporary limit on the number of non-EU migrants into the UK to 24,100 - a five per cent drop on last year - between now and April 2011. However, it is understood that the cap on immigration is unlikely to affect the fresh produce sector. “Those in the EU are able to come and go and I don’t see that changing,” says Waite.
Orme adds: “Under the coalition government, it’s difficult to know what will happen with the transitional agreements put in place for workers coming from Bulgaria and Romania. There is an opportunity to extend the measures for another two years to the end of 2013 but overall, I don’t see much increased opportunities for foreign nationals under the new government.”
Hudson says there is “scope for hope”. “It’s about pressing the new government to recognise and value the importance of seasonal labour in the fresh produce industry.”
There has been a slight increase in the number of domestic workers applying for jobs, albeit from low figures, but trying to engage many UK workers into seeking seasonal work on farms remains challenging. “We’re still at the point where there’s been very little rises in the number of UK nationals seeking seasonal work - it could be that workers show little interest in seasonal work as it doesn’t offer long-term prospects,” Orme suggests.
Industry leaders argue that the new government needs to re-evaluate welfare benefits so that the UK fresh produce sector can tap into the domestic workforce.
“At the moment, the system works against us,” says Olins. “Many UK workers are not terribly interested in seasonal work as it affects their benefits so the likelihood of doing three months of work is unlikely.”
Hudson says the fresh produce sector needs to promote itself better and change the perception of seasonal labour. “There’s a huge amount of good practice going on - the industry needs to stop hiding its light under a bushel and show the attractiveness of the workplace,” he adds. “There are good opportunities and experience to be gained from working in the fresh produce industry.”
Meanwhile, Davies says that the abolishment of the Agricultural Wages Board (AWB) will provide opportunities and enable the industry to be more innovative in how it rewards those employed within it.
“If seasonal workers were employed only under the National Minimum Wage (NMW) regulations instead of both the AWB and NMW, fewer would be dismissed at the earlier stages of their employment for not meeting productivity targets,” he argues.
Insiders agree that the main challenge facing the sector is sustaining a secure labour force for the future. Many warn that although there is sufficient labour at the moment, the situation could change rapidly and it could be that there’s a shortage of labour once again for the fresh produce industry.
“In order for producers to invest in their businesses, they need to have confidence and labour availability is key to that confidence,” Hudson says. “If they don’t have that, clearly it’s going to affect the willingness and ability to invest. A long-term view is needed - no business can operate on a year-to-year basis.”
GLA CLAMPDOWN YIELDS RESULTS
The Gangmasters Licensing Authority (GLA) is deploying a wide range of techniques to catch gangmasters that are unlicensed, says GLA chairman Paul Whitehouse.
“We’ve used helicopters and are looking at mystery shopping techniques as these sorts of methods are very effective,” he explains. “Unlicensed gangmasters give the industry a bad name - not only do they exploit their workers, but they also undercut businesses that are legitimate and by avoiding paying taxes, this affects everyone, not just those in the fresh produce industry.”
Employers of labour have made a lot of improvements in working conditions in recent years, says Jimmy Davies, general manager of HOPS Labour Solutions, adding that this is a result of GLA activity and making work more attractive to aid recruitment and retention.
“Labour users have a good working relationship with the GLA, and the Labour User Group is in a key position to help the GLA develop guidance on best practice, training and awareness of issues,” says Nigel Jenney, chief executive of the Fresh Produce Consortium.
TRAINING TOMORROW’S STAFF
Pro-Force is focusing on skills development to improve worker quality, according to director Matt Jarrett.
“Our highly skilled team focuses on labour efficiencies through our bespoke Picking Schools and Supervisor School of Excellence programme, which targets coaching and development - ultimately improving efficiency, productivity and profitability for growers,” he explains.
The Supervisors School of Excellence is a two week residential course and is a new scheme for the 2010 season. But the main area of growth for Pro-Force is contract harvesting.
The company runs complete harvest and husbandry operations for its growers, leaving the owner/grower to concentrate on growing a good crop. “By using our skilled harvest managers, supervisors training, coaching and expertise, we have reduced harvesting cost to our clients,” Jarrett says.
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