EOC(3) MW 21

Equality of Opportunity Committee

Inquiry into Migrant Workers  

Response from Usdaw

Introduction

Usdaw is the fourth largest trade union in both Wales and the UK. We have over 20,000 members in Wales and 356,000 members throughout the UK. Usdaw members work mainly in the retail, distribution and food manufacturing sectors and we are the trade union with the biggest membership employed in the retail sector.

Nearly three fifths of Usdaw members are women and around 13% of our members are aged between 16 - 24 years.

Usdaw organises almost exclusively in the private sector and our members work in a variety of occupations and industries that includes shop workers, factory and warehouse workers, drivers, clerical workers, insurance agents, butchers and meat packers, call centres, milk round and dairy processing, catering, laundries, chemical processing, home shopping and pharmaceuticals.

Shop workers form the biggest group of Usdaw members. We have members working throughout the retail sector from small convenience stores to the biggest superstores. Usdaw has members working for the big supermarket chains, but a significant part of our membership in this sector work for smaller retailers. For example, 35,000 Usdaw members work for Co-operative Societies in the UK, mainly in small convenience stores.

Usdaw also has a significant membership employed in the food-manufacturing sector that produces goods and in the distribution networks that deliver those goods to the shops.

Usdaw very much welcomes the inquiry established by the Assembly’s Equality of Opportunity Committee and the opportunity to contribute to it by way of this consultation. Should the Committee wish to receive any further information or further detail on any part of our submission then Usdaw will be pleased to assist with further written or oral evidence.

Usdaw and Migrant Workers

Usdaw has long experience of organising and representing migrant and other vulnerable workers and this is reflected in our representation on a number of relevant bodies. Our General Secretary, John Hannett sits on the Commission on Vulnerable Employment and is also a member of the Low Pay Commission. Bill Snell, one of our National Officers, is a member of the Gangmasters Licensing Authority and Fiona Wilson, our Head of Research and Economics is a member of BERR’s Vulnerable Worker Enforcement Forum.

Organising migrant workers remains a key challenge for Usdaw but one that we are determined to meet. The growth of the globalised economy means that the world is seeing an increasingly internationalised workforce.  More and more UK workers are living and working abroad, and we are inevitably seeing more migrant workers both in Wales and in the rest of the UK.  

Migrant workers are here to stay and we aim to welcome and organise migrant workers into Usdaw.  The workforces in our organised workplaces are becoming more diverse and to continue to be an effective trade union we must reflect that diversity. A trade union is only as strong as the levels of union membership in the workplace and our goal is to organise all workers in the workplace, regardless of their origin.

Some workers fear the arrival of migrant workers but we believe the interests of existing workers are best protected by organising the new workers to ensure that employers are unable to erode pay and benefits.  Trade unions have a responsibility to ensure that the most vulnerable sections of the workforce get a fair deal from employers by ensuring all sections of the workforce are organised.

Usdaw also believes that much of the anxiety and concern about migrant workers that has arisen in both Wales and the UK could be more correctly characterised as an anxiety about the rapid and increasing use of agency workers in many sectors and workplaces.  When issues of migrant workers are discussed, there is often little or no distinction made between migrant and agency workers. Whilst many (and sometimes all) agency workers in some workplaces are migrants, there are a significant and ever increasing number of migrant workers in stable and permanent employment working alongside and on contracts identical to UK workers.

We therefore think it is imperative to distinguish between agency and migrant workers.  A migrant worker can be described as a worker who is engaged in paid work in a country of which he or she is not a national.

The normal working definition for an agency worker is a worker engaged through or by an employment agency. Crucial to describing the legal status is the concept that neither party has any obligation to provide or carry out work. In UK employment law this means that the worker is not an employee and, therefore, not covered by a raft of employment protection legislation. This includes unfair dismissal for example, because the worker will never be dismissed - just not offered work.

There needs to be an awareness of the different issues these two groups of workers can face. Whilst they may share many similar problems and issues it is our contention that many of the most serious problems currently facing migrant workers is more attributable to their status as agency workers rather than as migrants.

Our Knowledge of Migrant Workers in Wales

Our knowledge of migrant workers in Wales is based not just on our day to day experiences as trade union officials, reps and members but also on research evidence we have collected to inform our organisational goals and strategies.

In 2005, we conducted a survey of a large number of food manufacturing and distribution sites across the UK, including several in Wales, in order to obtain a detailed account of the extent and conditions of both migrant and agency staff in Usdaw workplaces. We followed this up last year and this second survey covered all parts of the union and all sectors where we organise. From this, we have been able to map the extent of migrant and agency working throughout the sectors where we organise and can highlight with some confidence many of the issues facing migrant workers today.

From our experience in Wales, most, but certainly not all, of the most recent migrant workers have come from Poland and the other Central and Eastern European countries that joined the European Union in 2004 - the so-called accession states or A8 countries.  

Many of the sectors in which we organise are often characterised by unskilled or low skilled employment often accompanied by low pay and poor working conditions. It is currently in these sectors where the majority of migrant workers in Wales find employment. The Government’s Accession Monitoring Reports show that in the UK as a whole, the top twenty occupations that are filled by migrants from the EU A8 countries are almost all low skill, low paid jobs.

Whist migrant workers are found in every sector where we organise, in both Wales and the rest of the UK, the number remains highest in the food manufacturing and distribution sectors. However, there are growing numbers of migrant workers in many other sectors, notably retailing.  

Our survey results in Wales do not generally differ markedly from elsewhere in the UK, although we found in our workplaces in Wales that a large majority of migrant workers are employed through employment agencies rather than directly by the company where they actually work.

Our surveys raised a number of issues and these are detailed below:

The Language Barrier

The single most pressing issue for most migrant workers is the language barrier. Whilst the multi-ethnic composition of the workforce has grown in recent years, multi-language communication within companies has not. This has caused problems and raised serious issues particularly in the area of health and safety.

Usdaw has sought to address this issue by negotiating with companies on the use of multi-lingual notice boards, health & safety notices, posters and translation services in company induction programmes.

We are developing our communications between Union officers, representatives, members and migrant workers in a range of languages. We have a general introductory leaflet about the Union available in 35 different languages, which has proved a valuable recruitment tool and a more detailed employment rights leaflet is currently available in Polish. We have also translated wage offers, ballot papers and general communications as required into a range of different languages.

Usdaw has used a number of translation services but this has sometimes led to problems of accuracy. For example, a large majority of migrant workers in Usdaw workplaces are Polish and we have had feedback that some of the translation has not been accurate. It is not clear whether this is due to regional dialects making direct translation inaccurate in meaning and emphasis or due to the standards of translation services available. We have had particular concerns when translating 'union speak’ or workplace specific issues.

Most migrant workers are keen to improve their English language skills in 'English for Speakers of Other Languages’ (ESOL) classes and Usdaw Union Learning Reps have helped hundreds of Usdaw migrant worker members access ESOL classes. This not only gives migrant workers more confidence, it also helps ensure safety procedures are understood and followed. Above all, it helps develop cohesion and solidarity within the workplace and the community.

Usdaw Reps at many sites have negotiated with employers to help make ESOL accessible for our migrant worker members. Different employers have agreed to a range of measures from providing facilities for classes in the workplace and allowing shift changes to attend classes to providing paid time off to attend classes.

Unfortunately, in the summer of 2006 the Government announced that ESOL classes would no longer be fully funded - on the assumption that employers would voluntarily pay for ESOL classes. This has not happened, and low paid migrant workers have been forced to find the money to pay for their classes themselves - or stop attending.

Usdaw is campaigning to ensure that affordable access to ESOL is available for low paid migrant workers. This has involved lobbying MPs, speaking at meetings and tabling a Parliamentary Early Day Motion that was supported by many Labour MPs.

Usdaw Union Learning Reps are continuing to try to make affordable ESOL learning accessible through negotiating with employers, at the same time Usdaw is campaigning more widely to persuade the Government to keep ESOL classes affordable.

Work Related Issues

Our survey results showed that there were many instances of migrant workers fulfilling skills and vacancy gaps within workforces and contributing fully to the success of companies. In addition, many migrant workers had permanent positions within the workplace, reflecting the growing multi-ethnic nature of the UK labour force. However, there were also instances of migrant workers, especially those who are employed through agencies, being used to undermine existing terms and conditions within the workplace. We have also found that it is migrant workers employed through agencies who suffer the worst examples of exploitation.

One of the main factors in undermining existing terms and conditions is the use of agency labour to replace established workers for overtime and late shifts. This has caused friction as it has been seen as denying workers the opportunity to work overtime or premium shifts and the use of agency workers has been seen as a cheaper alternative.

Whilst Usdaw accepts that employers need at certain times to employ temporary agency workers to fulfil gaps for seasonal or high demand periods, we do not accept that this should deprive other workers from employment opportunities. We have recently negotiated a 20% cap on the number of agency workers at a major retailer in order to address this issue and we are seeking similar arrangements with other employers.

Our surveys also highlighted a number of best and worst practices in the use of agency workers. In particular, at two different food manufacturing sites from the same company there were greatly contrasting approaches to the employment of agency workers.

In one location, demarcation between agency and permanent workers was so clearly marked that each wore different coloured hairnets. Agency workers could be sent home at an hour’s notice without pay, although they were typically working 50 hours a week.

For permanent workers, the contrast between permanent and agency workers had led to some resentment and a belief that terms and conditions were being eroded. It was felt that local people had little chance of obtaining employment at the company and that overtime was now virtually non-existent.

In contrast, the second site had a completely different approach. Permanent and agency workers were fully integrated with no demarcation. Agency workers had some guarantee of hours and the company also had an annual review of agency workers. Any with more than 6 months service were offered permanent employment. As a result of this, a high proportion of the agency workers are members of Usdaw.

It is where migrant workers are unorganised and employed through agencies that the worst cases of exploitation and what can only be described as abuse takes place. As a result much of our evidence and examples of the worst kind of exploitation is anecdotal. In the work environment this has included a range of instances of exploitation such as under payment and illegal deductions from wages. A common problem arises because of the very nature of agency working. Many migrant workers have no idea when and how long they will be working, even on a day to day basis. For example, we know of instances where workers are texted in the morning to let them know if they are required that day and where workers have been sent home after just an hour as they are no longer required that day. In these instances, workers may even have been charged more by their agency to get to the workplace than they actually earned while there.

Trying to organise migrant workers is a challenge in any environment but especially when they are employed through an agency. Whilst we are making progress and have even signed agreements with some more progressive labour providers, most agencies would rather not have their workers organised and represented. The behaviour of many of them shows why.

The main barriers to recruiting migrant workers are the language barrier, the lack of knowledge of what a trade union in the UK does and very often the negative image many migrant workers, especially those from former communist countries, have of 'trade unions’. The other main barrier is one that is almost exclusively felt by migrant workers employed through agencies and it is simply fear. Many migrant workers in this situation fear that if they question, complain or speak out about conditions of employment they will simply not be provided with any work.

Non-work related issues

Our survey also revealed a number of issues specific to migrant workers that were non-work related. Again, many of these issues are particularly pressing problems for agency workers.

The most common issues raised were accommodation, transport and settling into the local community. Sometimes these were simply a reflection of general issues in a locality such as a lack of housing stock and/or poor transport links. However, there were many instances cited of poor accommodation charged at extremely high rents and the system of tying agency workers into a contractual arrangement with the agency for accommodation was extremely unfair and created many problems for agency employed workers.

In one example reported in our survey, an agency worker lost their job and as a result immediately lost their accommodation. Made homeless, they ended up having to live with an Usdaw member.

In another example, agency staff were being bussed in to a food manufacturer from over 50 miles away. Long travel times to workplaces not only greatly increase the length of the working day for these workers but can also have a serious impact in limiting the opportunities migrant workers and their families have to build friendships and social networks between themselves and within local communities. These agency workers often live scattered over a wide geographical area with little chance of developing any sense of 'community’ beyond the workplace.

On a more positive note, in one instance Usdaw was able to negotiate alongside the employer with the agency provider to remove extra charges for accommodation whilst the employer agreed to increase their hourly rate of pay to assist with accommodation costs.

Other issues regularly raised were support with the opening of bank accounts, accessing benefit entitlements and approaching social services within the communities the migrant workers had settled into.

Usdaw is a member of a Migrant Workers Forum set up in Merthyr Tydfil on the initiative of the local Police Division that aims to address the many challenges faced by migrant workers new to the town. The Forum has representatives from a host of local service providers and has produced a very useful 'Welcome Pack’ for migrant workers. This has information on accessing a range of local services and activities. We have had some concerns about whether the pack has actually been reaching those who most need it and unfortunately the Forum did stop functioning for some time. However, on the initiative of Merthyr Tydfil Housing Association the Forum has started meeting again and has a full programme of meetings planned for the rest of the year. This is the type of initiative and co-ordinated approach that we very much support.

Labour Providers and Employment Agencies

The number of labour providers and employment agencies has grown enormously in recent years and because of tragic incidents such as Morecambe Bay they generally have a very poor reputation. In the UK there are currently between 500 and 600 large labour providers with between 1,000 and 2,000 smaller providers. Usdaw has been the TUC’s delegate to the Gangmasters Licensing Authority since its inception and we very much welcomed the introduction of regulation into the industry.

After perhaps an understandably difficult first year, Usdaw believes the Gangmasters Licensing Authority is now working reasonably well. There have now been a number of successful prosecutions and it is clear from the number of licences issued that many rogue operators have been driven out of the industry. The major supermarkets have also played a part. They now pay far greater attention to this aspect of their supply chain and are generally much more rigorous in deciding who they give contracts to.

The decline in the number of agencies used by employers we deal with is happening in all sectors but it is particularly noticeable in retailing. Employers are clearly paying more attention to these issues and some rationalisation, at least in the number of agencies being used is clearly evident.

Our strategic response to the burgeoning use of agency workershas involved:

• Campaigning for the establishment of full employment rights for agency workers and in particular the need for legislation providing equal treatment for agency and migrant workers. Usdaw believe such legislation is vital to address the iniquities currently plaguing the industry and to establish a framework of legal rights that agency workers currently do not have recourse.
• Negotiating agreements with the agencies themselves.  Through these we greatly increase our ability to recruit potential members and lay down a framework of employment rights and representation.
• Continuing to lobby the Government for the implementation of the European Temporary Agency Workers’ Directive and to continuing work with Government bodies such as the Gangmasters Licensing Authority.

Conclusion

The Welsh and UK economy is almost unrecognisable from 10 or even 5 years ago. At the same time as large numbers of workers have arrived from the A8 countries, employers have started to use agency workers in significant numbers.

This twin phenomenon has often  led to scare stories and exaggerations about what this means for Welsh and UK workers.

Usdaw believes there is little or no evidence that migrant workers have had a negative impact on unemployment. In fact there is evidence to the contrary that migrant workers have filled gaps that have allowed the economy to expand.

There is, of course, the danger that employers try to take advantage of a ready supply of labour to try to reduce pay and other terms and conditions of employment. Usdaw’s response is to organise all workers into the Union to ensure that this cannot happen.

It has become clear through our experience of agency and migrant workers that a one size fits all approach does not work. Instead we believe there is a need to take specific action on particular specific issues.

Our strategy is to develop our understanding case by case and act according to the specific issues that arise whether it is within a company or region or industry or indeed the origin of the workers themselves.

Usdaw does however strongly believe that the implementation of the European Temporary Agency Workers’ Directive is essential for a modern workforce and fundamental to alleviating the vulnerability of the many migrant workers in Wales employed through agencies. The Directive would guarantee equal treatment for these migrant workers and prevent companies from undercutting the terms and conditions of existing permanent employees.  Without the Directive, despite the best efforts of Usdaw and other Trade Unions, we believe many migrant workers in Wales will remain vulnerable to unscrupulous employers and remain a potential threat to permanent workers terms and conditions. We would urge the Welsh Assembly to join our call for the implementation of the Directive.