Estates, farmers and others within the horticultural sector that rely on a seasonal workforce to help harvest or grade produce in Shropshire, may face an uncertain future with the new National Living Wage (NLW) coming into force.
A rise of 50 pence per hour to every worker aged over 25 could have serious implications for those who rely on this vital source of labour.
With profit margins already tight, some farmers may need to review current workforce structures, to see if there is any room for manoeuvre. Gareth Lay from Bruton Knowles Shrewsbury office says:
“The vast majority of fruit and salad farmers pay their workforce quite well already however a rise of around 7.5 per cent to their operating costs could see many struggle.
“There are of course a number of options open to the farmers such as employing less people which could impact getting the harvest in on time, charge more and run the risk of not being able to sell their produce or make a smaller profit or worse a loss.
“If farmers charge more for their produce supermarkets will probably divert to cheaper imports, again an option no one would really want to happen.
“Most of these are all pretty unpalatable for a sector that has made great strides in recent years and contributes a significant amount to the UK economy, so it would be a shame to see it take a step back as a result of the NLW.
“It’s also worth noting that any employer that fails to pay its workers the new NLW could face prosecution as well as possible claims from aggrieved workers.”
The NLW could also affect country estates where seasonal labour is used for grounds and property maintenance.
Potential Double Whammy With Brexit - The potential of the UK leaving the EU could, according to Gareth, restrict the movement of seasonal workers, particularly those from Eastern Europe who have for years provided a vital source of labour for fruit and salad farmers.
Gareth added: “The referendum in June will be keenly monitored by those in the salad and fruit sector. It has always relied on a proportion of workers from Europe and a restriction on the movement of labour could play havoc on their ability to get the harvest in. The next few seasons are going to be testing for many."
“We represent many famers, estates and agricultural businesses and are on hand to provide advice on what the best options are.”
For further details contact Gareth Lay on 01743 770084 or This email address is being protected from spambots. You need JavaScript enabled to view it.