Rogue agencies accused of exploiting workers
Some agencies are deducting workers’ pay to such an extent they are earning less than the minimum wage, a new report suggests.
According to the TUC a “growing” number of agencies are deducting workers pay for items like safety clothing, cashing pay cheques, accommodation and transport.
As a result, the workers are earning less than the hourly minimum wage.
In 2003 minimum wage laws were introduced to protect agency workers from exploitation. Under these laws workers can bring complaints against their employment agency if they believe they are being charged unfairly for accommodation or other items.
However many are either unaware of their rights or too concerned about losing their jobs or accommodation to complain.
The TUC is calling for better protection for vulnerable workers.
TUC general secretary, Brendan Barber, said: “The current regulations, which are designed to protect agency workers from abuse at the hands of rogue agencies are clearly doing nothing of the sort. Agency workers deserve a better deal than many of them are getting at the moment.”
They are urging the Government to back the new European Temporary Agency Workers Directive, which would improve job security, pay, working time, holiday entitlement and maternity rights for agency workers. The TUC argues it would create a climate where it was harder for unscrupulous agencies to break the law.
It accuses the Government of being part of a coalition that is blocking progress on the directive.
The minimum wage currently stands at £4.85.
Separately, the shopworker’s union Usdaw is pushing for the minimum wage to be raised to over £5 an hour it hoped that in the Budget on March 16, Gordon Brown will raise the level above the symbolic £5 mark for the first time.
“All the evidence shows that a well paid workforce pays dividends for employers in terms of staff retention and increasing staff morale,” said John Hannett, Usdaw general secretary.
He accused opponents of the raising of the minimum wage of “scaremongering” claiming that: “We’ve never come across any evidence in retail bankruptcy cases where the minimum wage was cited as the reason for why a company went out of business.”
