NFU Seasonal Labour Survey: Results & Analysis
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1 NFU Seasonal Labour Survey: Results & Analysis Report contributors: Author, Hayley Campbell-Gibbons, NFU Chief Horticulture & Potatoes Adviser Data collection and analysis, David Clifford, NFU Research Manager Analysis, Anand Dossa, NFU Economist Policy, James Potter, NFU Senior Legal Adviser
2 Page 1 Executive summary The NFU s seasonal labour survey points to serious limitations for growers if the Seasonal Agricultural Workers Scheme (SAWS) ends after Government is currently considering whether to introduce a replacement scheme. A record 236 growers responded to the survey, employing over one third of England s total seasonal workforce. From the responses received, it is estimated that every 3.5 seasonal jobs supports one UK permanent job in the horticulture and potatoes sector. Over 95% of growers who used SAWS labour in 2012 said that the removal of the scheme would have a negative impact on their business. Respondents with an annual business turnover in excess of 1 million were more likely to describe the impact of SAWS ending as very negative. Looking ahead, growers are ten times more likely to increase their seasonal workforce over the next two years than decrease it. Business expansion and optimism for the future were cited as the most likely reasons for increasing labour. Of those growers predicting an increase in the amount of labour required in the next two years 4 said that they would need an additional 11 to 50 workers, 21% said they would need an additional 51 to 300 workers and 6% suggested that they would need to employ more than 300 additional seasonal workers over the next two years. When asked about the benefits of SAWS, growers placed equal value on the reliability, flexibility and consistency it offers them. Methodology and sample 236 NFU members within the horticulture and potato sector were surveyed between the 19th December 2012 and 8 th February respondents were interviewed by telephone and 184 self-completed the survey online. The vast majority of respondents (235) are based in England with 1 based in Wales. The distribution of respondents by region is shown in figure 1. Responses were highest from the South East and East Anglia regions. The sector distribution of respondents is shown in figure 2. Respondents could select more than one crop sector to operate in according to their business structure. Responses were highest from the brassica and soft fruit sectors. The majority of respondents (76%) had a business turnover of between 499k and 5 million, with 32% of this group having a turnover of between 1million and 5 million (figure 3). Those surveyed employed an estimated 16,667 seasonal workers in 2012 (figure 4a) - representing over one third of the total seasonal workforce for England 1 - and 4762 permanent workers (figure 4b). As such, it is estimated that every 3.5 seasonal jobs support one UK permanent job in the horticulture and potatoes sector. 1 (DEFRA s Farm Labour and Wage Statistics 2012 indicated 40,455 non-permanent workers in England
3 Arable Asparagus Field veg/brassicas Hops Ornamentals Other Outdoor salads Potatoes Protected salad crops Soft fruit Top fruit Trees Page 2 Figure 1: Distribution of respondents by region 25% 25% 26% 15% 5% 9% North East (22) 6% North West (13) 7% East Midlands (17) 16% West Midlands (37) East Anglia (58) South East (62) 11% South West (26) 0.4% Wales (1) Figure 2: Distribution of respondents by sector 4 35% 25% 15% 5% 4% 2% 34% 3% 17% 2% 1% 17% 6% 32% 21% 2% 35% 25% 15% 5% Figure 3: Distribution of respondents by business turnover 26% Up to 499k 17% 500k to 999,999 32% 1 mil to 4,999,999 13% 5 mil to 19,999,999 1% 1% 0.4% 20 mil to 49,999, mil to 99,999, mil to 250 mil Over 250 mil Would rather not say / Don't know
4 Page 3 Figure 4a: Permanent Staff employed Seasonal staff in 2012 Midpoint Respondents Estimated total seasonal staff Zero to to to to to to to or more TOTAL Figure 4b: Permanent workforce employed in 2012 Seasonal staff in 2012 Midpoint Respondents Estimated total seasonal staff Zero to to to to to to to or more TOTAL Seasonal labour use The majority of respondents (7) used an agency to source their labour in 2012, with the remainder sourcing directly from abroad. Non-SAWS overseas workers originated from countries including India, Thailand, New Zealand, Australia, Gambia, Ukraine, Latvia and Lithuania. The Seasonal Agricultural Workers Scheme (SAWS) is a quota based scheme that enables farmers to recruit temporary overseas workers to carry out planting and gathering of crops, on farm processing and packing (maximum six month work permit). It is a robust and effective scheme, controlled by the UK Border Agency (UKBA) and managed by contracted operators, which has provided a pool of labour for the horticulture industry for the past 60 years. While working in the UK, SAWS workers pay tax and national insurance. 65% of respondents employed SAWS labour as part of their seasonal workforce in Of those, 96% stated that the removal of the scheme would have either a fairly negative (31%) or very negative (65%) impact on their farm businesses (figure 5a below).
5 Page 4 Figure 5a: Impact of ending of SAWS on growers businesses % 31% 4% No impact A fairly negative impact A very negative impact Figure 5b presents the impact of the ending of the SAWS scheme by respondents business turnover. Respondents with an annual business turnover in excess of 1 million were more likely to perceive the impact of the end of SAWS as being very negative 2. Figure 5b: Impact of ending of SAWS by business turnover Under 1m per year (51) 1m or over per year (84) 67% 63% 35% 2% 4% No impact A fairly negative impact A very negative impact In context: From a food security perspective a lack of seasonal labour to harvest the British crop could lead to fruit and vegetable shortages and a greater reliance on imported produce. There is no guarantee that, if less British produce was available, imports would be consistently available to make up the shortfall. The same levels of food safety, freshness, quality and traceability can also be harder to guarantee when buying from abroad. From an economic perspective the horticulture and potatoes sector contributes 3 billion to UK GDP and employs around 37,000 people in England on a permanent basis. The withdrawal of SAWS could jeopardize thousands of permanent British jobs on farms and across the supply chain (such as in processing, packing and manufacturing). Finally, from a political perspective, opportunities should be sought to boost employment and economic growth through progressive labour policies respondents that used SAWS in 2012 also indicated their business turnover
6 Page 5 Opinion amongst respondents was divided on the likelihood of Romanian and Bulgarian workers returning to undertake seasonal horticultural work after the current SAWS arrangements end; with 5 believing it to be likely and 49% believing it to be unlikely or undecided. In context: While some workers may return for one or two seasons, history and experience suggest that when the restrictions on A2 (Romanian and Bulgarian) nationals access to the job market are lifted in 2013 the horticulture sector will have insufficient labour to meet its seasonal requirements. Once presented with access to the wider job market workers have a tendency to move away from horticulture into other sectors of industry where the work is perceived to be more comfortable, consistent and, importantly, permanent. Future demand for labour When asked to predict any changes in demand for seasonal labour in the next two years, respondents were ten times more likely to require more seasonal workers than fewer (32% compared to 3% respectively). In total, 93% of respondents expected their demand for labour to remain the same or increase in the next two years (figure 6a) 3. Larger employers are more likely to increase use of seasonal labour in the next two years. The survey revealed that businesses currently employing over 100 seasonal workers are almost twice as likely (48%) to increase their seasonal workforce than businesses currently employing between 20 and 100 seasonal workers (27%). Figure 6a: Predicted demand for seasonal labour in the next 2 years % Will require MORE seasonal workers 61% No change in number of seasonal workers required 3% 4% Will require FEWER seasonal workers Don't know In context: Some suggest that further mechanisation may reduce the need for seasonal labour in certain sectors of horticulture in future. However, developing new technologies requires long term, significant investment and its application can be very crop specific. Furthermore, increases in production and an associated rise in demand for labour may offset any reduction that can be achieved through further mechanisation in certain sectors. Of those planning to increase seasonal labour in future, 4 estimate that they will need an additional 11 to 50 workers, 21% said they would need an additional 51 to 300 workers and 6% suggested that they would need to employ over 300 additional seasonal workers over the next two years (figure 6b). 3 Based on 223 respondents that used seasonal staff in 2012
7 Page 6 Figure 6b: Additional number of workers predicted in the next 2 years 35% 31% 25% 15% 17% 18% 5% 6% 8% Very likely Fairly likely Neither likely nor unlikely Fairly unlikely Very unlikely Don't know Growers cited business expansion plans, reducing risk and a more optimistic outlook for the future as the main drivers for an increase in seasonal labour in the next two years. A selection of comments from the growers included: We are an expanding business due to the popularity of our product We re planting higher yielding varieties of apples and will need more staff to cope Our business is continually growing and we have just invested heavily in cherry trees. We should get our first full harvest in 2014 I have expanded my business because of the demand for my crop With season extensions the farm is growing and more business is being done We have increased plantings of asparagus, which has to be picked by hand Rising costs of production and financial uncertainty increase the risk of taking on permanent staff to oversee year-round production. If we produce more seasonal varieties we can employ seasonal labour, which carries less financial risk The benefits of SAWS When asked about the benefits of SAWS, respondents placed almost equal value on the reliability, flexibility, productivity and consistency the scheme offers (figure 7, growers could select multiple choices) 4. 4 Based on 144 respondents that used SAWS in 2012
8 Page 7 Figure 7: Specific benefits of SAWS % 83% 83% 85% 85% Flexibility of having Positive attitudes of High productivity of workers on site SAWS workers SAWS workers Established scheme that provides reliable supply of labour Guaranteed labour for the entire harvest period In context: Currently there is no scheme other than SAWS that matches the unique demands of horticultural production. On horticultural units the need to harvest during certain windows of the day can be unpredictable (soft fruit ripens very quickly for example) and workloads can fluctuate in response to retail orders which can vary throughout the course of a day. SAWS workers usually live on site and are therefore able to respond very quickly to peaks and troughs in demand as per the requirements of the customer and the crop. Experience of employing UK workers The majority of respondents (72%) have previously advertised seasonal work opportunities to UK workers (figure 8a) 5. However, of those, only 19% reported that they had been successful in recruiting UK residents for seasonal work, with the majority (71%) reporting little interest amongst UK residents and 31% stating a lack of suitable applicants (figure 8b) 6. Comments from the survey respondents in relation to employing UK workers included: We ve not been able to employ UK residents with much success for the last ten years There is always a response but we are presented with very few employable people UK recruitment was an unreliable, time consuming exercise UK workers do not seem to have an appropriate work ethic or attitude in our experience Despite extensive training, motivation was poor and the staff turnover rate was very high Good response to the advert, but the majority gave up within a week... SAWS made a huge difference and stabilised our workforce. 5 Based on 223 respondents that used seasonal staff in Based on 160 respondents
9 Page 8 Figure 8a: Have you ever advertised seasonal work opportunities to UK workers? Don't know, 3% No, 26% Yes, 72% Figure 8b: If yes, how would you describe the response? (multiple answers) % % 31% Successfully employed some UK residents for seasonal work Little or no interest to undertake seasonal work No suitable candidates In context: While many growers do try to employ local labour - regularly advertising vacancies through local job centres, the internet and placing advertisements in the local press - the response from the local population is often poor. British nationals generally have a preference for permanent jobs, and are often not attracted to seasonal work, which can involve physical labour, early start times, long hours and relatively remote locations. However, during a period of high UK unemployment the horticulture industry recognises that it must do everything it can to maximise the potential of the resident workforce to help meet its seasonal labour requirements. A project group has been established between the Department for Work and Pensions, the NFU and two labour providers to pilot initiatives to attract more UK workers into seasonal horticultural jobs. However, despite government ambitions to reduce the UK s dependence on overseas workers for low-skilled work, it is unrealistic to expect that change to happen overnight.
10 Page 9 In conclusion Many of the crops produced in Britain are seasonal, creating a structural problem to annually recruit sufficient seasonal workers. Demand for seasonal labour is only predicted to grow in the next two years in response to an increase in British horticultural production. The current SAWS arrangements only extend until the end of 2013 and Government has not yet decided if any successor scheme should be put in place. The NFU has developed proposals for a new seasonal labour scheme that will allow the horticultural industry to respond to the demands of consumers and continue to compete with imports. The horticulture industry recognises that it must do everything it can to maximise the potential of the resident workforce during a period of high UK unemployment, and several initiatives are underway to do just that. However, given the poor response rate to date, it is unlikely that there will ever be enough suitable UK workers to satisfy the sector s labour demand. The fact remains that seasonal migrant labour is the backbone of the British horticulture industry and growers rely on it to produce and harvest their crops. With 96% of growers stating that the end of SAWS will have a negative impact on their business it s clear that a continuation of the scheme will be vital for ensuring the on-going viability of horticultural production in Britain.
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