7Y allays crop fears over worker shortage

Herefordshire–based 7Y Services Limited today said that the current economic downturn could benefit local farmers and growers fearful of a shortage of immigrant labour.

Many of the county's food producers have, in recent weeks, expressed a fear that a lack of picking staff could mean crops are left to rot in the fields this summer.

This concern arose following recent amends to the Seasonal Agricultural Workers Scheme (SAWS) and has been exacerbated by today's report from the Institute for Public Policy Research claiming an exodus of EU migrant workers.

Just last week, news that the SAWS now only applies to seasonal workers from EU countries Bulgaria and Romania attracted widespread criticism from UK growers.

Previously the scheme had applied to non–EU workers and these reforms are expected to exacerbate the labour shortages sparked when the scheme quota was cut from 25,000 in 2004 to just 16,250.

Nick Tilt, director at farmer–owned, business–services company, 7Y Services, believes, however, that the current economic downturn could offer a solution.

Governed by the Gangmaster Licensing Authority (GLA), 7Y's temporary labour division already supplies 240,000 labour hours per year to a range of sectors.

He said, "Temporary labour usage is a key economic barometer and temporary labour agencies are all now feeling the economy bite with a downturn in demand from commercial and light industrial sector clients.

"There is, therefore, spare capacity in the general labour market.

"Whilst many EU agricultural workers have, over recent years, developed higher aspirations than fruit picking, the law of supply and demand will inevitably mean some will turn their hand back to the agricultural sector."

Mr Tilt went on, however, to urge growers keen to take advantage of buoyant farm–gate prices to start planning now.

"Growers need to act now if agencies are to offer this alternative employment to staff considering returning to Europe – potential harvesting staff won't just be sat on a shelf, waiting for picking work come the summer – and they also need to factor a different labour cost structure.

"GLA registered agencies are required to adhere to the Agricultural Wages Order (AWO) and payment and pricing structures will be different via labour agencies but this factors in the security of supply – and flexibility."

"Consider also that SAWS is due to be phased out in 2010. Producers with an eye for the future should use this as an opportunity to establish relationships with labour providers now – it'll pay dividends for the future."

Wed 30th Apr 2008