New Bill to tackle construction gangmasters
A Bill is currently going through parliament to extend existing legislation on gangmasters in a bid to curb the exploitation of workers in the construction sector.
At present, the Gangmasters Licensing Act 2004 regulates businesses that supply or use workers in sectors such as agriculture, horticulture, fish processing, gathering shell fish, dairy farming or the packing or processing of food and drink products, but not construction.
Calls for a Bill to reform the Act came in response to the 120 fatal accidents that have occurred on construction sites since 2007.
In the past 12 months, Health and Safety Executive prosecutions involving migrant workers have resulted in fines ranging from £3,500 to £90,000 and even prison sentences, for breaches of health and safety leading to incidents such as the paralysis of one worker and another being hit on the head by a concrete lintel.
Prosecutions such as these have been all the more prevalent following the enactment of the Corporate Manslaughter and Corporate Homicide Act last year but it has been recognised that more needs to be done to protect often vulnerable construction workers.
Under the legislation, gangmasters must be licensed by the Gangmasters Licensing Agency (GLA), which requires them to demonstrate that basic employment standards are met. This includes ensuring that workers are paid at least the national minimum wage, that they work within the Working Time Regulations, that health and safety procedures are in place, that workers are charged fair rates for accommodation and that intimidation or other discrimination is prevented. In addition, employers that use workers controlled by gangmasters must ensure those gangmasters are licensed.
If a gangmaster trades without a licence, the maximum penalty is ten years’ imprisonment and a fine. The maximum penalty for using an unlicensed gangmaster is six months’ imprisonment and a fine.
A recent survey by Construction union, UCATT found that across Britain, 28.2 per cent of construction sites have some level of gangmaster activity and in London and the South East, this figure increases to 69.7 per cent. As well as health and safety issues, UCATT also discovered that workers were being paid less than the national minimum wage.
The Bill has been introduced to prevent the spread of the gangmaster culture in construction, especially with the UK construction industry being in the spotlight in the run up to the 2012 Olympics.
Having passed its first reading in the House of Commons on 10 June 2009, the Bill will have its second reading on 16 October 2009. If it is eventually enacted, construction businesses will need to ensure that they either have a licence from the GLA or that the sub-contractors and agencies they deal with are licensed.