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.
Although the individual licence has been revoked the parent company can still trade in agriculture, food processing and shellfish production, the areas covered by the Gangmasters Licensing Authority, in other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.
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UCATT discovered that in Lanarkshire, 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 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."
(GK/JM)
