Despite its campaign to peg back rises, the board increased the grade 1 rate by 7p to £5.81 per hour from October 2009. It set a uniform 2.2 per cent rise for all other grades.

The NFU said pay talks had been tough as they were set against a severe economic downturn, falling inflation, rising unemployment and uncertainty on farm incomes.

Employment representative Bob Fiddaman said: "We are disappointed the settlement goes beyond the increase of 1.9 per cent agreed by the Scottish board.

"This is especially so given the degree of competition both sides of the border in industries such as soft fruit," he said. "And the deal was at the very limit of acceptability for the NFU given the wider employment situation and market pressures faced by many producers."

However, the deal was "fair" and reflected recent consumer price index figures on the average price of goods and services, he said.

"We are pleased the increase for grade 1 to £5.81 per hour has been kept modest. This is critical for sectors like horticulture, with many seasonal and low-skilled staff. But we dispute the case for any differential between this and the national minimum wage, recently set at £5.80 per hour."

Clive Edmed, vice-chairman of the British Independent Fruit Growers' Association, said: "No rise in the current climate is over-welcome, but it doesn't seem too extortionate. It comes at a bad time though, given more fruit is being polybagged, and it's an added cost we have to pick up. Some reckon it amounts to a 15 per cent cut.

"I've never understood the differential between the minimum wages, and why ours should be higher. I would have thought it should be on a par."

The Agricultural Wages Board also agreed to an increase of £10 in the birth and adoption grant from £50 to £60.

AGREED HOURLY RATES
Wage increses from October 2009
Grade 1 from £5.74 in 2008 to £5.81
Grade 2 from £6.26 in 2008 to £6.40
Grade 3 from £6.89 in 2008 to £7.04
Grade 4 from £7.39 in 2008 to £7.55
Grade 5 from £7.82 in 2008 to £8.00
Grade 6 from £8.45 in 2008 to £8.64

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