ETI's Public
Seminars on
Seasonal and Foreign labour in the
UK Food Industry
April / May 2002
- Background & Context
- Who Participated?
- Key Points from the Presentations:
- Workshop discussions:
- Key findings and future action
- List of contacts / useful resources
- Notes
- See Also
Background & Context
ETI members proposed 2 regional seminars to address the exploitation of seasonal and foreign labour in the UK food industry. This was in response to an observed increase in the exploitation to seasonal and foreign labour, which has been brought to light through the auditing of codes of labour practice, and by media coverage.
The purpose of the seminars was as follows:
- To provide suppliers in the UK food industry with practical advice
on how to identify and address the exploitation of seasonal and foreign
workers.
- To develop recommendations as to how suppliers, supermarkets and
ETI can take steps to address the exploitation of seasonal and foreign workers.
- To raise awareness of the issues associated with foreign and seasonal labour and identify specific regional issues and possible solutions.
The seminars took place at local venues on April 30th 2002 in Maidstone, Kent and 15th May 2002 in Grantham, Lincolnshire. The counties are major horticultural areas where the gangmaster system has been part of the agricultural labour situation for a considerable time. Included in each seminar were workshops to identify current good practice and constraints.
The scale of the problem
The gangmaster system has long been part of the agricultural labour situation in the UK. Due to recent production and marketing developments and an increasing shortage of labour [1] there has been an increase in the number of gangworkers (many of them women) being used. Some gangmasters have over 1000 workers registered and therefore dominate the supply of labour to growers and packhouses.
The use of gangmasters is recognised as an acceptable and necessary
part of agricultural and seasonal working practices. Although the system is
legal, problems ensue due to the lack of regulation, which allow unscrupulous
gangmasters in exploiting gangworkers. Foreign workers in particular are at
risk because of their ignorance of local language and labour rights they are
entitled to. Those foreign workers with no formal right to work in the UK are
further exposed to exploitation, as they will not attempt to access their
labour rights through any channels for fear of detention and deportation.
Unscrupulous gangmasters misuse the system using a number of methods that are
illegal or abusive. These methods include undercutting, tax and VAT evasion,
abuses of S.A.W.S, poor facilities and abuses of worker welfare. Reputable
agricultural and employment agencies cannot compete with the lower costs of
unscrupulous gangmasters. Many of the gangmasters are legitimate and only a
minority are criminal.
Who Participated?
Participants included suppliers, retailers and development and labour rights organisations that are interested or involved in this issue. Over the two seminars 94 Suppliers, 10 Supermarket / retailer representatives, and 6 Government representatives attended. Speakers ranged from suppliers and a progressive gangmaster to trade unions, the Fresh Produce Consortium and employment lawyers who brought extensive skills, experience and knowledge in this area.
KEY POINTS FROM THE PRESENTATIONS
What are the abuses?
Don Pollard, Transport & General Workers Union (TGWU)
Don Pollard recently retired as the Chair of the National Committee of the Rural, Agricultural and Allied Workers' Trade Group of the TGWU. He was himself a grower and has extensive research experience of labour rights for contract labour in agriculture.
The most common abuses experienced by 'gang labour' are:
- Non compliance with the Agricultural Wages Board Order (which is UK
Law): gangworkers are denied their entitlement to minimum wage, paid holidays,
sick pay, maternity / paternity leave.
- Unlawful deductions from wages: deductions taken from wages for
transport, food and accommodation, work clothing and equipment; in many cases
these deductions are not indicated on pay slips.
- Undeclared labour: workers are asked by gangmasters if they wanted
to be registered or not. If they were not registered they would be paid less
than those registered but could then receive state benefits as this income
would be difficult to trace.
- Illegal immigrant labour: In a number of Eastern European countries
illegal labour agencies arrange job placements, travel visas and accommodation
for people looking for work in the UK. Most people who seek the services of
these agencies are not able to finance these arrangements on their own and are
therefore immediately in debt. Debt and their illegal status allow gangmasters
to take advantage of these immigrants. Problems faced by illegal migrant
workers include excessive charges for food, accommodation, wages well below
statutory rate, long hours and intimidation.
- Health and safety violations: protective clothing and equipment not
available, no drinking water or toilets.
- The FEAR factor: fear of losing their jobs, verbal abuses, physical
attack. This has been confirmed in many cases.
A Supplier & Agency perspective
Alan Legge, Macks & Agency
(Maidstone
seminar only)
Alan Legge is the technical director of Mack Multiples, the second largest supplier of fresh produce to the UK and source from over 30 countries world-wide.
The agency has in place a number of provisions, which ensure that every person employed has read and understood a range of regulations and rules. These range from Health & Safety information (Children & Young Persons Act 1933 / Factories act 1961), hygiene rules (Food Safety - General food Hygiene regulations 1995) and site rules. The agency also warrants that all staff have understood the Working Time Regulations 1998. Workers are required to waive their entitlement if they wish to work in excess of the stated allowed hours. The agency records the working time for each worker on a daily basis. The Agency ensures compliance with UK law by registering for VAT and Tax / PAYE, having employer liability insurance and ensuring that all staff are entitled to work in the UK.
Macks provide written information to all their staff which include :
Fire evacuation, Hygiene rules, First aid / accident procedure, Health &
Safety at Work Act 1974, welfare facilities, site rules.
FPC Code of Conduct
Doug Henderson, Fresh Produce Consortium (FPC)
Doug Henderson is the Chief Executive of the Fresh Produce Consortium and is also a Director of Horticulture Research International.
Background
Corrupt gangmasters were exposed in Bitter Harvest (1997) and Panorama (2000). The Government responded with Operation Gangmaster (1998) resulting in inter departmental raids on farms and packhouses where gang labour was used. In addition the National Farmers Union (NFU) produced a Code of Practice for Seasonal Workers which was subsequently reviewed by the Ministry of Agriculture, Fisheries and Food (MAFF) with NFU, FPC and others. The result of this review was the production of the FPC Code of Practice.
Objectives of FPC Code
The main objective of the FPC Code was to bring gangmasters into the legal framework. The Code also gives companies advice on best practice and a verification checklist. The scope of the code is packhouse and is post-harvest only.
Current situation
In late 2001 the Agricultural Investigation Team was asked to
investigate the gangmaster situation. Their findings stated that the situation
had got worse. Doug recognises and takes on board the issues raised by Don
Pollard. Only those using the FPC guidelines had improved and this was not the
case throughout the industry. The industry has a responsibility to abide by the
law and the lack of government enforcement has exacerbated the situation.
Gangmaster perspective
Zad Singh Padda, Fusion Personnel
Zad Padda is Head of Operations for Fusion Personnel, a hybrid of the gangmaster system and a high street staff agency.
Introduction
Gangmasters provide a legal, flexible workforce to meet seasonal and market demands. Historically this was done through local recruitment but now occurs over a much wider catchment area. There are over 2000 gangmasters in the UK.
Zad's family have been 'gangmasters' in the Birmingham area for over 30 years and have been working with fresh produce companies for this time. They currently provide labour to some of the biggest packhouses in the Evesham Vale area. Fusion Personnel was developed in order to take the business forward by providing staff which can provide a level of expertise to customers businesses.
The agriculture situation
In the agricultural industry at any one time there are 70,000 seasonal and casual workers which can increase at peak planting and harvesting times. This labour may be sourced through local recruitment or SAWS (Student Agricultural Workers schemes) but many workers are brought in and supplied by gangmasters.
The Evesham Area is a very important horticultural area supplying a large amount of fruit & vegetable packhouses/growers to all major retailers. These packhouses/growers are heavily dependent on the supply of gangworkers, as local labour is not sufficient. This is due to: low unemployment, low pay and low status associated with this type of work.
The gangmaster system has a tarnished image and there is a need for a rebranding of the concept.
Gangmaster Concerns
Unscrupulous gangmasters misuse the system using a number of methods that are illegal or abusive. These methods include undercutting, tax and VAT evasion, abuses of S.A.W.S, poor facilities and abuses of worker welfare. They disregard costs born by legitimate gangmasters, which include: N.I, PAYE, sick pay, holidays, transport.
The Way Forward
- A Gangmaster registration scheme
- Responsibility for addressing issues to be shared by the whole industry
- Adequate and efficient Government intervention
- Companies such as Fusion Personnel, used as best practice models
NB Full presentation available from ETI. Please
contact adil@eti.org.uk
Immigration Office
Chris Hudson, Home Office
Chris Hudson is an immigration officer based in the Lincolnshire area.
Chris provided an engaging and practical presentation concerning the category of workers that do not have a legal right to remain in the UK. She provided practical pointers in relation to a complex industry, which operates to provide migrant workers with illegal documentation, some of which are listed below. Chris is willing to answer queries by phone at any time (see contact list).
- Home office Guidance Booklet
Referred to documents that should be checked and how to confirm their validity. - Temporary admission form
This does not have photographic evidence of the person on it but should be accompanied by a legal attested photograph. - Students
UK law states that students can work if studying at least 15 hours per week. - Holiday makers
Commonwealth working holidaymakers under the age of 27 can work for 2 years. - Transport
Any migrant worker must take a UK driving test in order to continue driving on their home licence after 12 months.
Enforcement
The Home Office cannot prosecute persons who possess certain unlawful
documentation e.g. a forged standard acknowledgement letter but can prosecute
those who forge passports. The use of forgeries could be significantly reduced
if companies checked the originals of immigration documents carefully or by
checking with the Home Office. The Home Office can also inform you if a
gangmaster has come to their notice 'adversely'. Companies should contact the
Home Office for a list for the documents you require to work and for guidance
on how to identify false documents.
Employment Law
Steve Gibbons / Mark Tarran, Incomes Data Services (IDS)
Steve Gibbons is Head of Employment Law Services at IDS and editor of IDS Brief. Mark Tarran is an employment law researcher at IDS.
What is covered by the Law
Employment law is based on individuals having and enforcing their rights. Employment law covers everything to do with the employment relationship.
Scope of employment protection
| Recruitment: | Basic requirements under UK law include: recruitment is non- -discriminatory. Discipline and grievance procedure must be provided. A written statement and particulars to be provided within 2 months. |
| Payment: | Must be national minimum wage or agricultural wages compliance. Wage slips and payment on time is required. |
| Working hours: | Set out in working time directive. |
| Dismissal: | Clear legislation sets out the procedure to be followed |
| Collective matters: | Employees must be consulted and informed. |
| Other rights: | Maternity and parental rights Sex, race and disability discrimination Health and safety obligations Trade unions |
Who is covered?
| All Employees / Workers: | all of key legal areas now cover workers including self-employed; those who choose their hours, agency workers, part-timers / full-timers, fixed-term or permanent. |
| Qualifying periods: | qualifying period is 1 year for unfair dismissal and 2 years for redundancy. |
| Geographical scope: | if you work in the UK you will be covered by UK law wherever you were recruited. |
Working time
| Excluded sectors: | transport is still excluded. There is a 48-hour maximum average working week; average is the crucial word. E.g. 1st week - 48 hours, 2nd week - 52hours then 3rd week - 44hours. |
| Opting out: | employees can opt out in writing but health and safety issues must be taken into consideration. |
| Other issues to be taken into consideration include daily and weekly breaks, night work, young workers and managing working time or record keeping. | |
National Minimum Wage (NMW)
All workers are entitled to the national minimum wage. How
much?
£4.10 (£4.20 October 2002)
£3.50 (£3.60
October 2002) Development rate 18-21 year olds (or first 6 months accredited
training).
To calculate NMW for 'output work' please see DTI Guide. Accommodation offset is 57p per hour or a max £3.25 per day)
NB Full presentation available from ETI. Please contact adil@eti.org.uk
Workshop discussions
The presentations and workshops generated a large amount of discussion. The basic purpose of these workshops was to determine what best practice is currently available, for example controls already in place, and to identify some of the key problem areas and what effective solutions there are to these. This was then used to identify gaps and any additional information needed to take action forward and for whom.
A number of recurring issues became apparent and these are summarised
below:
What best practice do we have already?
The following are examples of good practice already adopted by some suppliers:
- Working with agencies to monitor their selection & recruitment practices
- Contracts with agencies which spell out obligations on both sides and linked with technologists
- Making use of codes of practice e.g. FPC Guidelines
- Emphasis on induction for all new workers.
- Special supporters during peak sessions and to get right language speakers
- An employer questionnaire addressing key issues.
- Incentives or penalties (e.g. with-holding payment ) for labour agencies and gangmasters to enforce contract obligations
- UV Light acquisition to check official documents
- Wages :
- ensure agency workers paid equivalent wages to other workers on farm
- insist agencies to provide invoices broken down by employees
- worker interviews to identify what wages are being paid
- Company taking responsibility for verification in some cases
- Induction in different languages for workers
- Work papers - samples taken for checking regularly
- Contract for gangmaster (on basis of documented proof of payroll, VAT certificates, staff documents etc )
- Provision of information for gang staff on their rights & what to do if they are violated.
- Labour agencies to keep a computer database of information on who is working as provided by Fusion Personnel
- Employers approaching unions for collective representation and to check for labour abuses
- Involve Immigration and other government departments
Common problems
- Supermarkets need access to information and training from Govt agencies on foreign labour issues
- Peaks and troughs of labour needed are unpredictable which affect planning
- Problems are passed down the supply chain to avoid responsibility
- Field vs packhouse - different scale of problem at different levels of industry
- Who investigates to ensure compliance?
- Expert knowledge is needed. Need qualified auditors who know what they are looking for
- Identification of issues are difficult at labour supply level
- Lack of communication between supermarket / company / gangmaster or labour agency
- Image of labour providers is tarnished as it is difficult to separate the good from bad
- Overseas migrant workers are not only those who are abused - UK workers also
- Lack of legal enforcement by Government.
- Lack of regulation of labour suppliers
- No process for knowing which gangmasters is credible
- Sub contracting of gangmaster labour makes it more difficult to monitor
- Lack of cohesion / co-operation within the industry
Recommendations
- Avoid ( unreliable ) agencies and accept the need to pay more although the freedom to do this depends on the nature of business and the ability to plan
- Threat of de-listing if the supplier is unwilling to deal with non compliances
- Agencies required to provide induction / training to their workers on H & S safety etc
- Retailers should commit to monitor all their suppliers through effective social auditing
- Helpline (one stop shop) open to employers and employees for information provided by Government.
- Suppliers to only use registered agencies and introduce rigorous checks
- Standardised code of practice
- No sub contracting of labour supply between labour agencies
- Resources to identify these issues made available for suppliers
- Training for labour employers via a multi stakeholder approach
- Dissemination of good practice within the industry
- All managers who employ labour should take responsibility for getting good gangmasters
- TRANSPARENCY throughout industry
- Best practice Guide for Gangmasters / Packers / Growers
- More translations of notices etc into languages of foreign workers
- Define Kite mark - Best practice
- Production of a toolbox for suppliers to include a list of contacts and documents, checklists and case studies to identify and address foreign and seasonal labour issues.
Key findings and future action
The presentations and workshops generated a wide and varied discussion. The use of casual and temporary workers by gangmasters is recognised as an acceptable and vital part of the agricultural industry. However it was recognised that it is of equal importance that the industry take all the necessary action to ensure that illegal practices and the abuse of workers are not taking place. As long as the criminal gangmasters get away with illegal practices and make big profits they will continue to operate and expand.
Participants identified a number of issues (see recommendations) that need addressing including a common industry standard / code of practice, which is verifiable, credible and with buy-in from retailers and suppliers. Participants also requested ETI to circulate a list of contacts and useful resources, which is provided overleaf. There was a strong feeling from all participants that a cross industry approach was the most practical and holistic way forward and that codes in themselves are just not enough. This resulted in the following action:
ACTIONThe setting up of a working party to draw up a plan to address the issues and recommendations raised. The working party will be facilitated and co-ordinated by ETI, to liase and explore with the Government the licensing and registration of suppliers of contract labour and to realise the provision of a system of identifying good practice. The working party will ensure a cross industry approach involving the fresh produce and meat industry plus aspects of the food industry. Working party to include :
|
List of contacts / useful resources
Contacts
Doug Henderson
Fresh Produce Consortium (FPC)
dwh@freshproduce.org.uk
Tel: 01733
237117
Nick Clark
Trade Union Congress (TUC)
nclark@tuc.org.uk
Tel: 0207 467 1322
Chris Hudson
Immigration Office
Boston_ukis@lineone.net
Tel:
07768 798248
Zad Padda
Fusion Personnel
zadpadda@hotmail.com
Tel: 07950
550350
Don Pollard
Transport & General Workers Union (TGWU)
Larkydon@macunlimited.net
Steve Gibbons
Incomes Data Services
steve@incomesdata.co.uk
Tel: 020
7324 2560
Useful websites
| DTI guidance | www.dti.gov.uk/er/regs.htm www.tiger.gov.uk |
| DTI National Minimum Wage | www.dti.gov.uk/er/nmw |
| ACAS (Advisory, Conciliation and Arbitration Service) | www.acas.org.uk |
| Health and Safety Executive | www.hse.gov.uk |
| Employment law news | www.idsbrief.co.uk |
| Trade Union Congress | www.tuc.org.uk |
| JCWI (Joint Council for the Welfare of Immigrants) | www.jcwi.org.uk |
| Work Permits UK | www.workpermits.gov.uk |
| DEFRA (includes MAFF) Department for Environment, Food and Rural Affairs | www.defra.gov.uk |
Useful telephone numbers
| DTI National Minimum Wage Helpline | 0845 6000 678 |
| Agricultural Wages Helpline | 0845 0000 134 |
Review of the Seasonal Agricultural Workers' Scheme is now
available from:
www.homeoffice.gov.uk/atoz/consult_papers.htm
ETI
The Ethical Trading Initiative (ETI) is an alliance of companies, non-governmental organisations (NGOs) and trade union organisations who work together to identify and promote good practice in the implementation of codes of labour practice. All member companies are committed to ensuring that the ETI Base Code is implemented in their supply chains, and to measuring and reporting to ETI on progress in doing so.
Notes:
- The National Union of Farmers estimates that there is a labour shortage on British farms of between 30,000 and 50,000 people. [context]
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