Gangmaster Found Advertising Jobs Below Minimum Wage

An already shamed gangmaster has been discovered to be advertising construction jobs below the minimum wage.

Last week it was revealed that the franchisee of the 247 Staff employment agency in Burton on Trent had been stripped of his gangmasters licence for forcing workers to live in cramped conditions, withholding money from them and forcing them to sign standing orders or they did not receive work. In some cases workers were paid less than the minimum wage after deductions had been made.

Although the individual licence has been revoked the parent company can still trade in agriculture, food processing and shellfish production (the areas covered by the Gangmasters Licensing Authority) in other areas. The company also remains free to organise labour in the construction industry, where the Gangmasters Act does not apply.

UCATT have discovered that in Lanarkshire Scotland 247 Staff are advertising on the internet for construction labourers at a rate beginning at just £5.35 an hour, 17 pence below the current National Minimum Wage which came into effect in October last year.

The fact the company is offering employment below the minimum wage has been brought to the attention of senior Government ministers and the National Minimum Wage enforcement body.

Alan Ritchie, general secretary of construction union UCATT, said: “It is despicable that greedy gangmasters think that they can get away with paying below the minimum wage. Thousands of workers are being exploited daily by such companies, whose only interest is profit.”

Harry Frew Scottish Regional Secretary for UCATT, said: “It will only attract unskilled workers with little or no experience of the construction industry, leaving a gap in health and safety training. It is little wonder that accidents in the industry are on the rise with unscrupulous employers taking on these unfortunate inexperienced workers”.

UCATT have been campaigning for the Gangmasters Act to be extended to the construction industry. A policy unanimously adopted by the TUC Congress last year.

UCATT are also calling on 247 Staff to be expelled from the Recruitment and Employment Confederation the trade association representing gangmasters and employment agencies. REC have previously said that rogue gangmasters would not be allowed to be members of their organisation as they did not meet minimum standards.

Mr Ritchie, added: “The Government have suggested that there is no need to extend the Gangmasters Act because trade organisations like REC are self policing. It is about time to see whether REC are prepared to show their teeth or are just another paper tiger.”

In recent years there has been a huge increase in casualisation in the construction industry. In particular the use of gangmasters/labour only employment agencies has dramatically increased. Recent academic research undertaken by Sheffield University found that 33 per cent of the construction industry was “in the shadow economy”.

Gangmasters in construction have recruited predominantly but not exclusively migrant workers from the former Eastern Europe. Aside from low and withheld pay, these workers often experience excessive non-optional charges for accommodation and travel. Also in some cases workers have been illegally charged for personal protective equipment. Migrant workers working for agencies are highly unlikely to be paid holiday or sick pay.

For Further information contact Barckley Sumner on 0780 2329235