Select Committee on European Union Written Evidence


Memorandum by the Union of Construction, Allied Trades and Technicians (UCATT)

INTRODUCTION

  The Union of Construction, Allied Trades and Technicians (UCATT) is Britain's only specialist construction workers union with over 120,000 members employed in all building trades, in both the private and public sectors. The union organises workers in the United Kingdom and the Republic of Ireland.

  The majority of small businesses and 9 per cent of the UK's total workforce are employed in the construction industry, therefore any changes to the Working Time Directive could have a direct impact on the construction industry and the members we represent.

  We warmly welcome the opportunity to participate in this consultation.

(i)  The reference periods for determining the working week:

  1.  UCATT are concerned that the reference periods used by employers, are used in such a way to ensure that the worker has no rights at all under the Directive.

  2.  It has been brought to our attention from members all over the country that they are being made to work seven days a week, 52 weeks a year because the reference periods their employers have decided to use are 52 weeks. Please see Annex 1.

  3.  The employers advise their workforce that they signed the document (Please see Annex 1) and therefore must adhere to it. One member informed us that when he asked for a weekend off, in accordance with the weekly rest period regulation, his employer refused him, on the grounds that any days off he did accrue under the 52 weeks reference period, were now null and void, as he could not carry his entitlements over from one year to the next. This practice contravenes the spirit in which the legislation was intended, and UCATT believe employers cannot be allowed to get away with this.

  4.  The members are happy to inform the union of their situation but will not take any action against the employer while they are still in employment, for fear of being dismissed.

  5.  UCATT believe that all employers must use the standard 17-week reference period, unless derogations are made through the use of collective agreements.

(ii)  The use of the individual opt-out:

  6.  Certain parts of the construction industry, mainly the private sector have ignored the Working Time Regulations. It is not uncommon for workers starting a new job to be told that in order for them to begin work, they must sign an agreement, absolving the employer of having to pay holiday pay and a statement claiming they are prepared to work more than 48 hours a week. In the TUC produced report "About Time" it stated that 1.07 million people employed as operatives or in skilled trades were working excessive hours.

  7.  As the construction industry has one of the worst industry safety records in the UK, then inferences can be drawn between excessive working and accidents and fatalities. By its very nature construction is an extremely dangerous industry and fatigued workers cannot perform efficiently.

  8.  More than 500,000 workers work for more than 60 hours a week in the UK, and just under 4 million people work more than 48 hours a week. The fact that the Regulations are not effectively enforced in the UK mean that there are substantial sectors of workers who do not benefit from the Regulations. It is often those who need protecting most, who are being exploited. An opinion poll commissioned by the TUC found that two out of three workers did not know that they had a legal right to work less than 48 hours a week. Combined with employers who use the opt out as a compulsory hurdle to starting a job, the legislation is just not working. Long hours do not necessarily equate with high productivity.

  9.  The underlying principle for the working time limit is in reality a straightforward one, ie, the risk of work related health problems increases with the number of hours worked. Those working the longest hours are most likely to develop such problems, including cardiovascular disorders, mental health problems, stress related disorders, musculoskeletal problems and digestive disorders.

  10.  It is no surprise that the risk of having an accident at work increases significantly for hours worked above 48 per week, thus providing a clear justification for the limit on working hours.

  11.  30 per cent of construction workers work more than 48 hours a week according to the Labour Force Survey 2001 and 47 per cent of construction workers would like to work shorter hours, but do not have the choice.

  12.  What is too often ignored is that the working time limit in the Working Time Regulations is a health and safety measure.

  13.  UCATT believe that as long as the opt-out remains there is little incentive for employers to reduce the hours worked.

(iii)  Ensuring compatibility between work and family life:

  14.  UCATT believe that working excessive hours, being denied rest periods and having no real entitlement to annual leave can all lead to the breakdown in family life. A report produced by the Joseph Rowntree Foundation titled "How do they find the time?" Five extremely important points supporting UCATT's belief.

    —  Long working hours have a negative impact on families.

    —  Fathers who work in professional and managerial jobs were least likely to be involved in the care of their children.

    —  The long hours associated with these sorts of jobs discourages some women from seeking promotion.

    —  Long hours, for either fathers or mothers are associated with less involvement in children's activities and the frequent disruption of family activities.

    —  80 per cent of mothers whose partner works more than 48 hours want them to work less.

(iv)  Other matters for consideration:

  15.  UCATT also believe that in order for the Working Time Regulations to be effective other parts of the Regulations also need to be examined.

PROBLEMS RELATING TO ANNUAL LEAVE

  16.  Although UCATT appreciate that almost 5 million workers have benefited from this particular part of the Regulations, there are still serious flaws in the implementation of the Directive.

    —  There is no "real" enforcement of the Regulations, if employers refuse workers the time off, then unless they are prepared to go to an employment tribunal, then they will not be able to take holidays.

    —  Public holidays can be counted as part of the entitlement, as opposed to being counted separately.

    —  Many employers, especially in the construction industry are still using "rolled up" rates, 52 week reference periods and in the more extreme cases, refusing point blank to allow employees to take paid leave, by simply saying "we don't pay it".

EMPLOYMENT STATUS

  17.  While construction workers are covered by the same confusing employment status laws as other groups of workers, they are also covered by tax laws specific to the industry. Under the Construction Industry Scheme, introduced in 1999, workers are now issued with registration cards (CIS4), which allows their tax to be deducted at source by the contractor/sub-contractor as a self-employed contractor. Although the cards are not a test for self-employment, many employers will not accept workers on a site without a CIS4 card.

  18.  The key UCATT decision on the definition of a "worker" is contained in Byrne Brothers (Formwork Ltd v Baird and others EAT/542/01).

  19.  UCATT have also had cases where workers on a CIS4 card, have been threatened by their employer, with the Inland Revenue Recovery team, unless they drop their claims for holiday pay. Please see Annex 2.

  20  This review of the Regulations must ensure that all workers are allowed to take and to be paid for annual leave.

ISSUES WITH ENFORCEMENT

  21.  One of the main reasons UCATT believe that UK employers will not reduce working hours is the lack of enforcement.

  22.  When transposing a European Directive into UK Law, one of the fundamental principles is that of enforcement, and that an individual can ensure that their rights are enforced.

  23.  This is clearly not the case, workers are unclear about their rights, there are "get-out" clauses throughout the Regulations, allowing employers to deny their workers these rights, often legitimately, and even where the employers choose just to simply ignore their legal responsibilities they can do so, in the knowledge that unless a worker complains, no action will be taken against them. It is often the case, especially in unrepresented workforces that a complaint will not be made, as the workers will be threatened with dismissal.

  24.  The HSE are responsible for the enforcement of the Regulations, but in most cases, only where a complaint has been made. The HSE only employ a very small number of officers who work in the Working Time area. They have no powers of entry and no rights to issue enforcement notices.

  25.  UCATT believe that a rigorous enforcement system needs to be in place, whether through the HSE or another body, sufficient promotion of these rights to workers, especially in unrepresented sectors, and the knowledge that they can be enforced. Only then, can these rights be anything more than a paper exercise.

  The evidence is being submitted on a corporate basis.

19 February 2004



 
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