No medical cover for farm workers branded “immoral”

Tuesday 22 February 2022

It is “immoral” that seasonal farm workers pay Social Security contributions from the moment they start work but are not eligible for non-emergency medical cover for six months, an industry head has said.

Jersey Royal Company Director Mike Renouard told a Scrutiny Panel looking at seasonal labour that it was wrong that staff were paying into the system but not receiving any benefits.

“Our workers receive no social security for the first six months of their nine-month work permit,” he said. “They get emergency cover if, say, they break their arm but the next day, when it needs to be put in plaster, they have to start paying.

“We have had staff who have returned to their home country the next day. If the hospital then asks for money, we as a company will stump up.

“Our staff are paying social security contributions and so are we, but if someone comes back for a second season, they have to start again with six months of no cover. 

“It is immoral.”

Pictured: Jersey Royal Company Business Unit Director Mike Renouard giving evidence to the Economic Affairs and International Scrutiny Panel.

Mr Renouard said that the Royal Company was looking at creating an insurance scheme to cover this period but it should be the Government’s responsibility to fund care.

He added that a 12-month work permit for skilled workers, such as tractor drivers, would be preferable to the nine-month permission, as drivers - who operate sophisticated technology - were needed all-year round and received a significant amount of training. 

This would not need to lead to entitled status, he said, as the vast majority of agricultural workers intended to return to their home country when they had earned enough money to, for example, buy or build a home.

Another issue, he said, was a change in relationship with Revenue Jersey. Upto earlier this year, Jersey Royal had a strong working relationship with the tax office, which allowed the company finance team to inform them of the likely ITIS rate for each member of seasonal staff.

However, this had changed and new workers to Jersey were often initially given a 20% rate, which they could not understand, despite the prospect of a rebate at the end.

“Many workers come from countries where the level of trust in the government is low,” said Mr Renouard. “They see that a fifth of their earnings are going in tax and they question whether coming to Jersey was the right decision."

Pictured: Mr Renouard said that the last two season had been atrocious due to the weather but there was optimism for this year’s crop.

He also called for the system of UK-granted visas to be improved. Sometimes, he said, the company would send off a block of 30 or so visa applications but these would be returned in dribs and drabs, which made planning start dates very difficult. 

Mr Renouard also shared the many challenges facing the industry, including competition for employees from other jurisdictions, which had been amplified by Brexit, and an “unprecedented” inflation rate of 17% to 18%.

Around half of staff came from Poland and Portugal, with the other half from various countries, including Romania, Bulgaria, Hungary, Kenya, Kazakhstan, Turkmenistan and Russia.

Many of the Russians spoke a good level of English and were often graduates, he said.

New legislation had added to costs too, including providing extra rest breaks and holidays to staff.

Poor weather over the last two years had led to “atrocious” seasons but there was more optimism this year,’ he said. 

The Jersey Royal Company had also invested heavily in technology, which had probably made it the most productive business in Jersey, he added.

“We have gone from 600 staff at peak season to 340 over five years, with no loss of productivity,” he said, with more automation in grading, planting and standing.

The company was also working with the Jersey Farmers Union and Cambridge University to develop a robotic planter, which was especially challenging in Jersey with its small field sizes.

Inflation was also an opportunity to return to a realistic price for the premium Jersey Royal, said Mr Renouard. 

He added that the UK market was still strong, and non-British competitors had seen their own costs increase through post-Brexit tariffs. 

Later, Home Affairs Minister Gregory Guida also appeared before the same Scrutiny Panel, Economic and International Affairs.

He said that the island was restricted in extending work permits further because of human rights issues. However, he added that the Government was looking into the issue of social security payments and if previous seasons could count for eligibility.

The panel heard that Jersey would soon be taking more control of visa applications from the UK, which may solve the issue of the irregular return of permissions.

Assistant Homes Affairs Minister Lindsay Ash also undertook to investigate why the Jersey Royal Company’s relationship with Revenue Jersey appeared to have changed recently.