UCATT Uncovers Appalling Systematic Abuse of Vulnerable Workers on PFI Hospital

Construction union UCATT have unearthed a case of appalling systematic abuse of vulnerable migrant workers on a PFI hospital in Mansfield. UCATT have obtained the workers pay slips, which reveal that some workers took home just £8.80, after working a 40 hour week.

Dry lining subcontracting company Produm employed the dozen Lithuanian workers. The workers were paid below agreed minimum rates for the site operated by Skanska, did not receive overtime (some workers worked in excess of 70 hours and took home less than £100) and were charged excessive deductions for rent, tools and utility bills. It is understood that many of these charges were unlawful.

UCATT were only able to uncover the extent of the abuse after some of the workers stopped being paid altogether with the company currently owing some workers five week’s pay. The workers were initially scared of approaching the union because the company also provided their accommodation.

Alan Ritchie, general secretary of UCATT, said: “At UCATT we have been building up a large fact file of abuses of ganged workers. This case is the worst we have seen, these workers were virtually destitute. The fact it has occurred on a PFI site, using taxpayers money is scandalous.”

Early last week UCATT held a meeting with the companies concerned including the main sub-contractor Baris who had recruited Produm. At the meeting there was agreement that workers would receive back pay for the correct level of pay, would have excessive deductions from wages repaid and other enhancements. However following the meeting Baris reneged on their commitments.

It has also emerged that the workers insurance was actually through a separate company William DryWall owned by the director of Produm (Mr Petrikas). This company has gone into receivership and the workers have been working without insurance protection.

Steve Murphy regional secretary for the UCATT Midlands region, said: “This is a terrible indictment for the construction industry. This is a well-organised site where we are generally able to protect construction workers from exploitation. We will be able to eventually get a fair resolution for these workers. What is truly frightening is to think what happens on the many unorganised sites in our industry.”

UCATT has been running a long campaign to have the Gangmasters Licensing Act extended to the construction industry. In order to ensure that employment agencies/gangmasters pass certain minimum standards before they are able to supply labour. Without such legislation the only way to uncover workplace abuses is after they occur. The issue is likely to be a key issue at Labour’s forthcoming National Policy Forum next month, in the run-up to the writing of Labour’s next election manifesto.

Recently Business Secretary John Hutton made a speech in which he appeared to rule out Labour passing any further employment protection legislation. Mr Hutton’s department the BERR has been at the forefront of moves to block the extension of the Gangmasters Act.

Mr Ritchie, added: “This case proves just how wrong John Hutton is. If after reviewing this case he still does not believe that there needs to be greater employment protections then he should seriously reconsider why he is in politics.”

For Further information contact Barckley Sumner on  07802329235 or Steve Murphy 0789 4414595

UCATT represents 125,000 members employed in the construction industry throughout the United Kingdom and the Republic of Ireland

Notes to editors: The workers were only receiving £6 an hour when the site agreement said that they should receive a minimum of £7.31 an hour the lowest rate under the Construction Industry Joint Council, National Working Rule Agreement. Nor did the workers receive overtime which should have been paid for any hours in excess of 39 worked.

The site in question is the Kingsmill Hospital Site in Mansfield. The existing hospital is being knocked down and rebuilt. The project is worth £600 million