Hard Work, Hidden Lives - Commission On Vulnerable Employment

239 Pages·2008·1.56 MB·English

Hard Work,
Hidden Lives
The Full Report of the Commission
on Vulnerable Employment
“I always call them the hidden workforce…
They’re never working on the counter or the till.
They’re always in cleaning, distribution,
manufacturing jobs where the public don’t
see them... hotels, food preparation...
I call them the silent workforce.”
(Trade union organiser)
“I fnished my job before 4.30 and I went
to the agency offce and sat there and I said
to the manager I am waiting for my money
now. Manager said this is not possible. I said
I need money. I am working every day, 12 hours
one day and I don’t have money for rent, food.
I need money. My last salary was 2–3 weeks
ago. Manager called security, security said
get out.”
(Food processing agency worker)
“I had better experiences in Bosnia during
the war than here… Here, I had great
expectations, but I have only been mistreated.”
(Poultry factory worker)
Acknowledgements
We would like to thank all the organisations and individuals who provided us with
evidence during our investigations. We give our particular thanks to the workers
who allowed their stories to be told.
Our short report is also available to download from www.vunerableworkers.org.uk
Cover photo: Paul Carter
TUC Commission on Vulnerable Employment – full report
Contents
ii About our Commission
1 Chair’s foreword
3 Executive summary
7 Commissioners’ introduction
9 Chapter 1
Defning vulnerable employment
33 Chapter 2
Increasing awareness and advice
65 Chapter 3
The challenge for trade unions
8 9 Chapter 4
Escaping vulnerable employment
115 Chapter 5
Strengthening enforcement
165 Chapter 6
Closing the loopholes
219 Chapter 7
Recommendations
231 Appendices
1: Our Commission’s work programme
2: Organisations who have provided
evidence to our Commission
To see our short report go to www.vulnerableworkers.org.uk i
About our Commission
This is the full report of the Commission on Vulnerable Employment.
It is based on testimony from vulnerable workers, oral evidence, statistical
analysis and written submissions from academics, employment rights
professionals and experts in the feld. Its conclusions and recommendations
were reached through deliberation by Commission members and represent
the views of the group rather than opinions of any individual Commission
members or the organisations they represent. All Commissioners served in
a personal capacity, and not on behalf of any organisation with which they
may be associated.
Both our short and full reports are available to download
at www.vulnerableworkers.org.uk.
Mohammed Aziz, Chair, European Network Against Racism
Brendan Barber, General Secretary, TUC (Chair)
Kevin Beeston, Chairman, SERCO
Fran Bennett, Senior Research Fellow, University of Oxford
Madeleine Bunting, Columnist, The Guardian
Gail Cartmail, Assistant General Secretary, Unite
Debbie Coulter, Deputy General Secretary, GMB
Jack Dromey, Deputy General Secretary, Unite
Belinda Earl, Chief Executive, Jaeger
John Hannett, General Secretary, USDAW
Leslie Manasseh, Deputy General Secretary, Connect
Paul Myners, Chair, Land Securities Group
Frances O’Grady, Deputy General Secretary, TUC
Dave Prentis, General Secretary, UNISON
Alan Ritchie, General Secretary, UCATT
Julia Verne, Co-ordinator, Polski Bristol
ii TUC Commission on Vulnerable Employment – full report
C hair’s foreword
Brendan Barber, TUC General Secretary
I suggested the TUC set up this Commission for The big problem is that the debate about workplace
two quite distinct reasons. rights has become sterile. If government does
anything to extend rights it is instantly accused of
Unions have always known that a small minority of
being anti-business and old Labour. A big proportion
workplaces treat workers very badly, but there was
of employers have nothing to fear – and much to
a sense that this was on the increase. This was
gain – from a crackdown on the small minority who
reinforced by some shocking media exposures of
undercut the responsible majority by breaking the law,
exploitation, usually involving migrant workers.
or are using loopholes to get round it. But this does
So the frst task was to try to get an accurate picture not stop any advances automatically being
of exploitation in today’s workforce. How many denounced as red tape.
vulnerable workers are there? What does it mean
So the second reason to set up a Commission was to
to be a vulnerable worker? How do workers become
cut through this ritualised debate. My hope was that
vulnerable? Why don’t our current laws protect
a body that involved successful business people and
workers from the worst exploitation? Is the problem
independent experts as well as trade unionists, and
getting worse?
that only made recommendations after carefully
But knowing the answers to these questions does gathering evidence and commissioning new research,
nothing to make the lives of vulnerable workers any could start a new conversation that recognised we
better. To do this we need both policies that will end have a problem that needs a solution.
the worst types of exploitation and the will to get
And while the role of government is crucial, they are
those solutions implemented.
not the only people who can help end vulnerable work.
To see our short report go to www.vulnerableworkers.org.uk 1
Unions have also been asked some hard questions Government rightly emphasises the role of work in
by Commissioners, and although there is much good escaping poverty and social exclusion. The end of
practice, unions could clearly do more. Responsible mass unemployment is a great social advance. But
employers who are already interested in ethical trade replacing the hopelessness of the dole queue with the
want to ensure their supply chains do not rely on misery of dead-end lives trapped in insecure, low-paid,
exploitation, whether they end here or abroad. low-skilled jobs should be just as much a target for
Consumer power can also hold companies to account. progressive political action.
All the Commissioners, whatever their background, Without an end to vulnerable work, the Government
have been shocked by some of the stories we have will fail to meet its wider targets. Vulnerable
heard. I know that the vast majority of business employment does not allow workers to escape from
people that I meet will be as angry and as upset as poverty. The rise of the working poor is striking.
any trade unionist by the shocking case studies we Benefts alone will not end child poverty – parents
document. And we have the evidence that shows they need good jobs.
are far from exceptional. Anyone who believes in the
Vulnerable work also makes people ill. If the
rule of law will be astonished at the open lawlessness
Government wants to prevent disease as well as
we reveal.
treat it, then it must act on vulnerable work.
The intolerably poor working lives that too many
Migration is clearly a diffcult issue for politicians.
endure in today’s Britain should be a spur to action.
There is voter concern that it has caused
But to achieve this we will need a change in the terms
unemployment and driven down wages. While these
of debate from employers, unions and government.
effects may have been exaggerated, the recent
Employers need to understand that the increase in migrant workers has brought the hidden
recommendations we make here will not harm our world of vulnerable work into the daylight.
competitive position in the world economy. They are
But it is the weak position of migrant workers that has
not designed to be anti-business but protect those
made them vulnerable. If you increase the supply of
who play by the rules from being sucked into a race to
vulnerable workers then the unscrupulous will come
the bottom. We are not calling for a return to old-style
along to exploit them. So the worst way to respond to
regulation, but decent minimum standards effectively
concern about migration is to further reduce migrant
enforced in a way that targets bad employers and
workers’ rights. That will simply cause an even greater
does not waste time bothering the good. While we
downwards pressure on standards.
range widely, our recommendations are both fairly
modest in scope and based on what works in other Hyperbole and cliché are so common in today’s
successful economies, tailored where necessary to the political debate that it is hard to fnd the right words
British experience. And we want both employer and to express how strongly Commission members feel
union voices in the Fair Employment Commission about the injustices we have uncovered and the
which we recommend here. urgency of action to tackle them. Please read what we
have to say, and more importantly, join our campaign
Unions cannot be complacent. Even in organised
for action.
workplaces, it is often the permanent staff who are
in the union, while the vulnerable, sometimes Lastly I would like to thank all the Commissioners for
temporary workforce are ignored. Other workplaces giving up their valuable time and help to give this
have simply never heard from a union. And we have report real authority. And I should place on the record
to learn that winning new legal rights is not enough the thanks of Commission members to all the TUC
unless we also help make them a reality and build staff who have helped their work. In particular Nicola
practical enforcement into our proposals. Smith has worked full time (and more) to organise our
meetings and regional visits; commission and collate
The Government also has much to do, and must start
research; and to draft this report. Without her efforts
by rejecting a framework that defnes any action on
this would be a far less authoritative piece of work.
this agenda as anti-business red tape.
Brendan Barber
2 TUC Commission on Vulnerable Employment – full report
Executive
summary
The Commission on Vulnerable Employment estimate rights and do not work well together. In certain
that around two million workers in the UK fnd low-paid sectors, including care, cleaning, hospitality,
themselves in vulnerable employment – which we security and construction our evidence shows that
defne as precarious work that places people at risk some employers routinely break the law.
of continuing poverty and injustice resulting from an
While there have been welcome improvements
imbalance of power in the employer-worker relationship.
in employment protection in recent years, the
There are many and complex reasons for vulnerable persistence of vulnerable work means we now
work. Much exploitative treatment of vulnerable have a two-tier labour market in the UK. This is
workers occurs because the law is not strong enough particularly troubling given that international
to prevent mistreatment, with employers using gaps experience, supported by OECD analysis, shows
in employment protection to treat staff badly. The that economies can combine competitive success
result is extreme insecurity for workers who do not with proper protection for vulnerable workers.
have contracts of employment, work through
Our short report (also available online at
agencies, or who have reduced rights because
www.vulnerableworkers.org.uk) highlights our key
of their immigration status.
fndings and recommendations. In this full report
But many employers of vulnerable workers do also we set out our analysis and proposals in full for how
break the law, exploiting the powerlessness of their we believe trade unions, employers, civil society and
workers and the lack of effective enforcement of government should act to challenge vulnerable
employment rights. Enforcement agencies do not employment.
have enough resources to guarantee employment
To see our short report go to www.vulnerableworkers.org.uk 3
Key recommendations 4. When laws are broken, rights should be
effectively enforced. Workers who do not receive
their wages, who are not provided with paid
Improved awareness and advice
holiday or sickness leave or are refused their legal
Vulnerable workers have little knowledge of their
entitlements to maternity or paternity pay should
rights and fnd it hard to get advice. This is
have recourse to a simple, effective and timely
unsurprising as government does little to publicise
way to enforce their rights. All statutory rights
employment rights while advice and legal agencies
that involve only questions of fact and monetary-
are under-resourced, creating employment rights
based claims should be enforced by a state agency,
‘advice deserts’ in parts of the UK.
as well as by employment tribunals. Much closer
1. Immediate action needs to be taken to improve working between enforcement agencies is also
employment rights awareness. There should be essential if vulnerable employment is to be
a continuous national campaign, backed by tackled effectively.
government and involving civil society, employers,
5. Tighter regulation is needed of the sectors and
and trade unions, to increase awareness of
businesses where risks are greatest. The GLA has
employment rights across the workforce, but
demonstrated that it can effectively enforce
particularly among vulnerable workers.
standards in its sector and their approach could
2. Vulnerable workers should have access to advice. be applied to other sectors where vulnerable
This requires more resources for agencies and workers are exploited. A clear, nationally agreed
other bodies working with vulnerable workers. set of standards should be established for
Local authorities should have a statutory duty employment businesses/agencies providing
to fund employment rights advice services. temporary labour, which needs to be closely
In addition, the impact that legal aid reform has monitored. The Government should be prepared
had on the availability of advice for vulnerable to extend the GLA licensing regime – a proposal
workers should be urgently reviewed. which responsible agencies back – to cover
sectors characterised by vulnerable employment.
Better enforcement of employment rights
The aim would be to ensure that an employer
Many employers and employment agencies making
seriously exploiting workers and undercutting
use of vulnerable workers regularly fout the law
reputable companies would lose their licence
and get away with it. Employment tribunals (ETs)
to trade.
can be costly and intimidating places, especially
for vulnerable workers. The agencies that enforce Better regulatory and legal protection
specifc employment rights employ committed for vulnerable workers
staff but are under-resourced, do not have suffcient Many vulnerable workers suffer because they do
powers and do not work together, although the not legally count as ‘employees’ with a contract of
Gangmasters Licensing Authority (GLA) has made employment. Those considered simply as ‘workers’ or
an impressive start. who have been forced into bogus self-employment
not only have few rights, but lack any security,
3. Better enforcement of employment rights should
meaning that employers can sack them if they
be led from the top. The Government should
complain. Working through an agency can also create
establish a new Fair Employment Commission
similar uncertainty and precariousness at work.
to provide strategic leadership for co-ordinated
Immigration status is complex and can act to make
employment rights enforcement and to advise
workers more vulnerable by making them entirely
on wider policy to challenge vulnerable
dependent on their employers.
employment.
6. The unequal treatment of agency workers must
end. There should be a legal guarantee of equal
treatment between agency workers and directly
employed staff undertaking the same work.
4 TUC Commission on Vulnerable Employment – full report
7. It is wrong that ‘workers’ and the bogus Guaranteeing rights down the supply chain
self-employed should be denied the legal Our research shows that over 80 per cent of
protections enjoyed by ‘employees’ – employers now subcontract parts of their business.
employment rights in the UK are assigned using As supply chains become longer, enforcement of
a complicated and outdated system that rights becomes more complex and responsibilities
requires review. This urgent review should more ambiguous. Employers in the private sector and
examine employment status rules in order to public bodies can do more to ensure that their supply
improve the rights and protections available chains do not support vulnerable work. Consumers
to ‘workers’ (as opposed to ‘employees’), including should be able to hold employers to account.
recognition of the exploitation caused by bogus
10. Responsible employers should work together to
self-employment.
challenge vulnerable employment. Unions and
8. Many migrant workers are forced into vulnerable employers should work together to develop an
employment by immigration regulations. Across ethical employment initiative, involving existing
the immigration system regulations relating to organisations that provide support with corporate
low-paid migrant workers should be reviewed, social responsibility and building on good practice
with specifc consideration given to areas where to develop supply chain standards aiming to
their impact leads to a higher risk of exploitation. challenge vulnerable employment in the UK;
and Government and other public bodies should
Improved union organisation
use procurement to improve employment
of vulnerable workers
standards.
Trade unions have not organised the majority of
vulnerable workers. In the formal economy around
25 per cent of those in vulnerable employment have
a union presence in their workplace, but are not
themselves union members. It is time for unions
to take coordinated, national action to organise and
recruit vulnerable workers – and to act to increase
membership not just among directly employed staff,
but also the employees of contractors and workers
who are supplied by employment agencies.
9. Unions must act to ensure they represent the
interests of vulnerable workers. Unions should
organise all workers in workplaces where there
is a union presence, whoever employs them and
whether their employment is direct or temporary.
Unions should also focus on areas of the economy
where exploitation is rife and where trade union
membership is low. Trade unions should commit
to a TUC co-ordinated drive to boost membership
among vulnerable workers.
To see our short report go to www.vulnerableworkers.org.uk 5