ETI
Temporary Labour Working Group
Summary of Temporary Labour Working Group Activities in past two years
Contents:


Introduction
The tragic and shocking deaths of 23 migrant cockle pickers at Morecambe
Bay in February 2004 intensified public concern about the activities of
'gangmasters' or
labour providers. The lack of effective controls on these employers has
meant that unscrupulous operators and even criminal gangs have been able
to present
themselves as legitimate businesses. Few of the workers they employ are
aware of their rights, many have limited English and all are vulnerable
to exploitation
by unscrupulous employers. ETI has been co-ordinating a project to tackle
this problem, with measurable success.
In September 2002, after consulting
over 100 UK organisations, we convened a cross-industry working group,
known as the Temporary Labour Working Group,
to press for change in the situation of temporary workers in the food
and agricultural industry. Membership of the Group is shown below. The consensus
was that the abuses of temporary workers and fraudulent activities of
unscrupulous
employers were getting more frequent and new statutory controls were
needed to check the problem. The Group lobbied the Government for the establishment
of a national licensing and registration scheme for labour providers
that
would provide a guarantee that each was a legal and responsible employer.


The new licensing scheme
On 8 July this year our goal of legislation was realised and the Gangmaster
(Licensing) Act became law. The legislation arose from the Private Members’
Bill of Jim Sheridan MP. It was sponsored by the Transport
and General Workers Union and was supported by our Group through the UK
Parliament. A new authority will now be established with powers to issue
and withdraw operating licences to all employers of temporary workers in
the agricultural sector. Four new offences have been created to support
these measures. We hope that the national register of licensed labour providers
will introduce fair competition between the legitimate operators and, by
placing the responsibility on labour users to ensure that only their services
are used, the worst employers will be driven out. Workers will benefit as
the protection of their rights will be made a condition of doing business
and their employment conditions will be routinely scrutinised.


Temporary Labour Working Group members
| Temporary Labour Working Group members |
|
Representing/function |
| ASDA, The Co-operative Group (CWS)
Ltd, Marks & Spencer, Safeway Stores Plc, J Sainsbury Ltd, Somerfield
Stores Ltd, Tesco, Waitrose |
|
Retailers |
| Premier Foods |
|
Food manufacturing |
| Fresh Produce Consortium |
|
Packers, wholesalers, importers, retailers |
| National Farmers’ Union |
|
Growers |
Trades Union Congress
Transport and General Workers’ Union |
|
Trade unions Agricultural workers |
Fusion Personnel Association of Labour Providers (from May 04)
|
|
Labour providers |
| Ethical Trading Initiative |
|
Group co-ordination and expertise in the application of
codes of labour practice |
| Participating government departments |
|
Lead responsibility/function |
| Department of Environment Food and Rural Affairs |
|
Regulation of agriculture and food |
| Department for Work and Pensions |
|
Prevention of benefit abuse and lead on Joint Agency Working |
| Home Office |
|
Migration and immigration matters |
| Health and Safety Executive |
|
Inspection of health and safety in workplaces |


How gangmasters have avoided scrutiny
- Legal loopholes – ability to blur their identity as employers
and so avoid responsibilities to workers;
- Complex sub-contracting arrangements – hard to track them down;
- Sophisticated document forgery – difficult to find out who is operating
illegally;
- Many migrant workers – more vulnerable and so easier to exploit;
- Enforcement activity focused on revenue recovery rather than protection
of workers rights.


Supporting best practice
The Group developed a code of practice (download below) that includes
minimum standards for labour providers. The entire industry and government
now
support this
code.
We developed a system of independent audit and conducted field trials that
showed that code violations can be reliably detected and resolved. Temporary
Labour Working Group members have now joined a government consultative
committee which considers our code of practice to be a starting point of
the conditions
of the licence and the audit technique to be a signpost towards compliance
checks.
Tougher enforcement is needed but is not the only answer. Labour
providers also need best practice tools, support and advice. About 25 businesses
recently
formed the Association of Labour Providers to promote better practice in
the industry and they have made compliance with the code of practice a
condition of membership. The project also developed a ‘toolkit’ to
help labour providers implement the code.


A staged approach to legal controls
August 2003
The Group produces a draft code of practice for labour providers;
We design field trials to test the code and an inspection method;
Our publicity raises the issue in broadcast and print media.
September 2003
Government enforcement officers are seconded to develop trial
audits.
October 2003
The Group designs a method of code inspection;
We draft management tools to help gangmasters to implement the code.
November
2003
Field trials of code implementation commence;
The Group supports TGWU plans to sponsor legislation
for a Gangmaster Licensing and Registration scheme;
We start to lobby the Government.
February
2004
23 cockle pickers drown in Morecambe Bay. National media attention
increases and the issue races up the political agenda;
Field trials of code implementation are completed;
Encouraged by the Group, leading labour providers set up an Association
of Labour Providers.
July 2004
The Gangmaster (Licensing) Act becomes law;
We finalise the code of labour practice for gangmasters, an audit method
and the gangmaster ‘toolkit’;
The Group agrees new a workplan to communicate the code of practice to
the industry.


Our achievements
- Licensing for gangmasters from 2006;
- A national register of licensed labour
providers from 2006;
- A code of practice for labour providers;
- A system for auditing compliance with code provisions;
- Labour provider toolkit.
A report on the project, A licence to operate: new measures to tackle
exploitation of temporary workers in the UK agricultural industry is available to download
below.


Activities of the Working Group
The table below summarises the activities of Group members from April 2002
to July 2004.
| Objective |
Key activities |
Outcomes to date |
- Establish a cross-industry Working
Group with a common work programme.
|
|
- Over 100 organisations consulted
and priorities identified (April-June 2002).
- Working Group established (September 2002).
- Terms of reference agreed, detailed work plan approved and resources
raised (September 2002-April 2003).
|
- Lobby for the licensing and registration of labour providers.
|
- Lobby Ministers.
- Awareness raising through the media.
- Campaign for legislation.
|
- Gangmaster (Licencing) Act 2004 provides for a licensing
and registration scheme.
- Heightened public awareness of the problems associated
with temporary labour provision in the sector.
|
- Develop code of practice for labour providers.
|
- Draft code and consult industry stakeholders.
|
- Draft code tested in field trials and consultation (April
2003-February 2004).
- Code of practice agreed July 2004.
|
- Develop system of independent audit of compliance with the code.
|
- Draft and review audit protocol and tools in a series of
six field trials.
- Consult industry stakeholders.
|
- Audit protocol developed and tested in field trials (September
2003-March 2004).
- Auditor toolkit and procedures developed. (September 2003-July 2004).
|
- Develop tools to assist labour providers to implement the
code.
|
- Research current practice and identify best practice.
- Develop tools and pilot in trials.
- Consult industry stakeholders.
|
- Tools developed for use by labour providers, such as checklists,
documentation and management controls (April 2003-February 2004).
- Computer software designed to reduce administrative burden of controls
on labour providers (under development January – October 2004).
|
- Contribute to the setting up of an association of labour
providers willing to promote responsible practice in the industry.
|
- Identify labour providers willing to engage.
- Host workshop to discuss challenges and solutions in the sector.
|
- Association of Labour Providers launched in February 2004
with the declared intention of promoting observance of the code of practice.
|


Next steps for the Temporary Labour Working Group
(September 2004 onwards)
The Temporary Labour Working Group came together two years ago in order to
improve labour practices and achieve better protection for temporary workers
in the industry. The passing of the Act represents a considerable success
for us and all those who have called for these new measures.
Group members
now accept their responsibilities to assist Defra in establishing the Gangmasters
Licensing Authority and play their part to help it to become
an effective regulator. But our work does not stop there. We intend to
take the following steps to help pave the way for the implementation of
the Act:
- distribute the Code widely and encourage labour providers to implement
it now;
- organise a programme of regional workshops for labour providers and labour
users to inform them of the changes in the industry and what they must
do;
- establish a means by which labour providers can place themselves on a
(temporary) voluntary register and have their businesses assessed against
the standards
in the code of practice;
- train auditors in the use of the assessment technique and make these service
providers known to the industry.
The unique experience gained in delivering
this programme will be used to advise Defra and the Gangmasters Licensing
Authority on issues such
as the conditions of a licence and the audit provisions.
The code of practice
is not a ’compliance mechanism’ as such and
our Group will not offer a certificate of approval. We will promote it
as a way to help labour providers understand what practices they must adopt
in
order to prepare for the introduction of licensing. We hope to encourage
as many labour providers as possible to adopt best practices between now and
June 2005 (or when the Authority begins a comprehensive audit programme)
in
order to sustain the momentum for change within the fresh produce industry.
Note: For a furtther update, see also Nov
17 2004 Press Release.


Downloads
Summary
of Temporary Labour Working Group Activities in past two years (this
document) [PDF, 32kb]
Report: A Licence to Operate [PDF, 278kb]
Code of practice for labour providers to agriculture
and the fresh produce trade
[PDF, 166kb]
See also
Press Release, Nov 2004: Industry
unites to fight exploitation of workers in UK food and agriculture.
ETI Activities: Experimental
Projects: Temporary
Labour (Gangmaster) Working Group
(Seasonal & migrant workers in the UK food industry).