A MIGRANT WORKER’S PAY & CONDITIONS Case Study

1. A MIGRANT WORKER’S PAY & CONDITIONS Case Study Dave Richards TUC South West

2. ACCOMMODATION A converted lorry trailer on the loading bay of an abattoir and meat processing factory. Described by employer as, “a palace”.

3. Freezing cold – no insulation Cramped – 4 persons No wc Charged £30 pw each No planning permission

4. Promised good pay & accommodation by Anglo-Polish employment agency. ----------------------- Pay was £6.50ph – no overtime or speed bonus. Paid by employer and not agency. Told no Holiday Pay, no sick pay. No written terms of contract. Allegations of verbal & physical abuse by line manager. Allegations of serious breaches of Health & Safety regulation causing physical injury. Allegations of serious breaches of Food Safety/Hygiene Regulations

5. PAY An average week of 47 hrs = £ 303.88 Less accommodation £ 30.00 Less Tax & NI £ 54.29 NET PAY£ 219.59

6. Pawel Moves into Rented House with Wife & 3 Children Weekly Budget Net Pay (average) £246 Less: Food & Household £120 Rent £114 Utilities £ 26 Council Tax £ 16 Travel to Work £ 38 £314 Weekly Deficit (minimum) (£ 68) Pawel relies on Tax Credits, Child Benefit, Housing and Council Tax Benefit.

7. EMPLOYEE ISSUES Low Pay – sometimes less than National Minimum Wage. Pay often less favourable than the norm for Industry. Equal Pay – migrants paid less than UK colleagues. Long Hours – sometimes contrary to Working Time Regs. Accommodation – unfit, unsafe and overcrowded. Excessive Deductions – accommodation & travel – NMW. Agency charges for finding employment Health & Safety – lack of training, unsafe systems of work and equipment. Abuse – Allegations of verbal and physical abuse.

8. EMPLOYEE ISSUES Insurance – employer fails to obtain Employer’s Liability Insurance. Tax & National Insurance – employer fails to pay employees tax and National Insurance contributions. Confusion – no written statement of terms of employment. Who is the employer / who is the landlord. Benefits – delays and difficulty in access Tax Credit, Child Benefit, Housing and Council Tax Benefit. Jobseekers Allowance – A8s are not entitled to JSA for 1st year. Frightened of financial consequences of dismissal from or terminating employment with, an abusive employer.

9. EMPLOYER CASE STUDY A SW building company employs 20, mainly A8, migrants. Accommodates 12 in a 3 bed house and 8 in a 2 bed house. Accommodation charge is £50pw each or £1,000pw total. Paid as “self-employed”, £5/7ph cash in hand, no Construction Industry Certificates or 30% deduction. No WRS in operation – no deductions for NI – no check on NI numbers. Allegations of very poor site safety (injuries) and poor building practice. 4 Workers made angry complaint and were “sacked” but forced to sign an Agreement before payment of back pay.

11. EMPLOYER ISSUES An employer who defaults on obligations towards workers’ pay and conditions is more likely to default on: Payment of tax and National Insurance to HMRC. Health & Safety Regulations. Public liability and other insurance premiums. If in “Food & Drink” – Food Safety, Hygiene and Public Health. General safety of product or services. Planning and Environmental Regulations. Enforcement and compliance is a multi-agency task.