Welsh government bans umbrella company use on construction projects
14 January 2015
The Welsh government has moved to ban the use of umbrella companies on its construction projects following an investigation into worker contract arrangements on a South Wales road project.
Wed, 14 Jan 2015The Welsh government has moved to ban the use of umbrella companies on its construction projects following an investigation into worker contract arrangements on a South Wales road project.
Last November, construction union UCATT held a demonstration at a road-widening project on the A465, which is being built by support services firm Carillion and where workers were required to work via umbrella companies.
Following that protest Edwina Hart, Welsh minister for economy, science and transport, this week confirmed no worker on the A465 will be employed via an umbrella company. Workers will instead be employed on a standard PAYE basis either by Carillion or its own employment agency SkyBlue.
A Welsh government spokesperson told Recruiter: “The issue was brought to the minister’s attention by the activities taken by UCATT members as part of a national day of action. She immediately ordered an investigation into these contract arrangements and as a result satisfactory changes were made to workers’ contracts.”
But Freelancer and Contractor Services Association (FCSA) chief executive Julia Kermode said she hoped the minister’s decision was not simply a “knee jerk” reaction to union lobbying. “Umbrella employment is a positive choice for many and I am going to personally contact the Welsh Assembly ministers concerned to ensure that they appreciate the benefits of this type of employment and have not simply been influenced by union misunderstandings.”
However, Nick Blundell, UCATT regional secretary for Wales and the South-West, hailed the minister’s decision, calling the use of umbrella companies on such projects “unfair and exploitative”.
“This is a significant victory in UCATT’s campaign against umbrella companies,” he said. “It is now essential that all other public sector contracts introduce similar measures and umbrella companies are entirely outlawed.”
Last November, construction union UCATT held a demonstration at a road-widening project on the A465, which is being built by support services firm Carillion and where workers were required to work via umbrella companies.
Following that protest Edwina Hart, Welsh minister for economy, science and transport, this week confirmed no worker on the A465 will be employed via an umbrella company. Workers will instead be employed on a standard PAYE basis either by Carillion or its own employment agency SkyBlue.
A Welsh government spokesperson told Recruiter: “The issue was brought to the minister’s attention by the activities taken by UCATT members as part of a national day of action. She immediately ordered an investigation into these contract arrangements and as a result satisfactory changes were made to workers’ contracts.”
But Freelancer and Contractor Services Association (FCSA) chief executive Julia Kermode said she hoped the minister’s decision was not simply a “knee jerk” reaction to union lobbying. “Umbrella employment is a positive choice for many and I am going to personally contact the Welsh Assembly ministers concerned to ensure that they appreciate the benefits of this type of employment and have not simply been influenced by union misunderstandings.”
However, Nick Blundell, UCATT regional secretary for Wales and the South-West, hailed the minister’s decision, calling the use of umbrella companies on such projects “unfair and exploitative”.
“This is a significant victory in UCATT’s campaign against umbrella companies,” he said. “It is now essential that all other public sector contracts introduce similar measures and umbrella companies are entirely outlawed.”
- What do you think? Has the Welsh government made the right decision or overreacted? The Comment box is at the bottom of the page. Sorry for the glitch but just scroll right down and share your opinions!
