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THE NFU has expressed disappointment at the outcome of the Agricultural Wages Board over the conditions underpinning the 2008 Agricultural Wages Order, which it feels is completely out of step with the economic environment in which the sector operates.

The decision by the AWB will lead to a four per cent increase in the statutory pay rate for grade one workers and a 4.3 per cent increase in the statutory rates for workers covered by grades two to six.

There were a number of side issues agreed on by both parties, the most significant being the recognition of the team leader category within the grade structure, as a further sign of the commitment of the industry to support career development.

NFU employment spokesman Bob Fiddaman said: "We are disappointed and believe the final decision does not reflect the level of increases being granted in other areas of the economy or the economic situation of the sector.

"The imposition of an agreement that not only sets Grade 1 remuneration above National Minimum Wage levels, but also grants a pay award significantly higher than the average pay growth in the economy, calls into further question the very existence of the board."

As a result of the increases, the new statutory minimum rates are:
Grade One: £5.74 per hour
Grade Two: £6.26 per hour
Grade Three: £6.89 per hour
Grade Four: £7.39 per hour
Grade Five: £7.83 per hour
Grade Six: £8.45 per hour.

After two days of negotiations, the parties failed to reach an agreement and the final decision was the result of a vote of the independent members of the board.

"The overall cost to the industry remains difficult to quantify at this stage, but is estimated to be in the region of £60 million, depending on the extent to which the increases impact on wages already above requirements," said Mr Fiddaman.

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