Memorandum submitted by the Rural Agricultural
& Allied National Trade Group of the Transport and General
Workers Union (TGWU)
BACKGROUND
The T&GWU is the UK largest food union with
over 100,000 members in Food & Agriculture. It is the only
agricultural trade union in the UK. Through the Rural Agricultural
& Allied Workers Trade Group we represent people working directly
in agriculture and through to in particular first stage food processing
ie vegetable pre-packing, poultry slaughter and processing, where
increasingly we see Gangmasters being used to supply not only
seasonal fluctuations in labour but to very often supply core
labour due to difficulties in employers recruiting and retaining
staff. The TGWU's objective is to ensure that staff are treated
fairly equally whether directly employed or employed by Gangmasters.
HISTORICAL
The Gangmaster system of employment has been
used in certain parts of the country for many years. In East Anglia
we have evidence of it being prevalent in agriculture itself in
the 1940s and at that stage a simple registration system was in
place through the Local Magistrates. The advantage to the farmer/grower
was that he believed he was relieved of his legal responsibility
for that labour which then rested with the Gangmaster. However,
it is quite clear that Gangmasters often didn't comply and the
necessary paperwork relating to contracts of employment etc did
not exist.
Right through until the late 70s, the Gangmaster
would usually employ people on a local basis and be known locally
and to that extent have a degree of responsibility. However, in
the early 1980s people from areas of high unemployment were transported
on a daily basis to work in the fields and the pre-packing factories
situated close by. Vegetable processing at this time became a
year round activity supplying and servicing the ever increasing
demands of the Supermarkets and home grown produce being supplemented
with produce from abroad.
More recently migrant workers have been used,
some legally and some illegally. Quite clearly in the latter case
their bargaining position with the Gangmaster is negligible. This
does and has led to resentment locally not necessarily through
jobs being lost but sometimes because the directly employed labour
feel that their wages rates and conditions of employment are being
held back because of the supply of incoming labour from Gangmasters.
There have been various codes of practice implemented by various
segments of the industry. However, all have failed due to their
voluntary nature and the type of people involved as Gangmasters
who are unlikely to change their ways because of a voluntary code
with no teeth.
SIZE OF
THE PROBLEM
A recent estimate which has so far gone unchallenged
indicates that some 20,000 people are employed annually by Gangmasters
between Boston in Lincolnshire and Spalding in Lincolnshire, a
distance of some 16 miles. Additionally, between Spalding in Lincolnshire
and Ely in North Cambridgeshire, it is estimated that a further
20,000 people are employed by Gangmasters alone. This gives an
indication of the size of the problem but it is now quite clearly
a problem on a national scale.
OTHER INFORMATION
We do not intend to reproduce the extensive
material that is now available documenting the abuses and how
this system has developed. However, we would like to refer you
to some good pieces of work which has already been done as follows:
(1) The AIT Report for the Fresh Produce
Consortium (hard copy available on request).
(2) Review of the Seasonal Agricultural Workers'
Scheme.
(3) Registration of GangmastersTGWU.
(4) Report of UK Survey on Gangmasters Labour
for the European Federation of Agricultural Workers Unions (EFA).
(5) Gangmaster System in SussexAugust,
2000.
(6) Sainsbury's Gangmaster Conference29
January 2001.
(7) Gangmasters Birmingham/EvershamJan/Feb
2001
THE WAY
FORWARD
The T&GWU has firmly believed for some time
now that registration of Gangmasters with the appropriate sanctions
for non-compliance is absolutely essential if the abuses listed
are to be prevented. The exact detail of a registration scheme
is presently under discussion in a working group convened by the
Ethical Trading Initiative aimed at addressing labour conditions
for seasonal and foreign labour in the UK food industry. The remarkable
thing which should not be under-estimated in this initiative is
that it brings together the trade unions, the growers and the
retailers all with the objective of statutory registration. In
our experience it is rare to find such an approach to issues of
regulation. Any such registration scheme must have the support
of all the stakeholders involved ie trade unions, growers and
retailers. Must be monitored and reviewed and have the ability
to carry appropriate sanctions if the conditions are not met.
The scheme must create the conditions in which reasonable Gangmasters
can survive and flourish and not be drawn down to the levels of
others in order to compete. Interestingly any such scheme is likely
to concentrate on getting people to meet the minimum standards
required by law ie the national minimum wage, remitting national
insurance and tax deducted and a very useful by product for government
would be a improved collection of monies due from taxation etc
and also the eradication of benefit fraud.
Any such scheme should be robust because from
our experience of the people involved in this area of work ie
Gangmasters themselves, they are prepared and will go to extreme
lengths to avoid their responsibilities up to and including physical
intimidation.
25 April 2003
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