Unite called on the government to extend its wage support scheme announced last Friday (20 March), to protect the million plus workers trapped in bogus self-employment during the coronavirus crisis.
The union is urging the government to extend its wage scheme to immediately cover workers paid via the Construction Industry Scheme (CIS) and those paid via umbrella companies and payroll companies.
Last year, 1.03 million construction workers were paid via the CIS scheme in 2018/19, the vast majority were bogusly self-employed and paid on a weekly basis. A further 300,000 construction workers are paid via umbrella companies.
Before the government’s employee assistance scheme was announced, Unite recommended that all self-employed workers who are taxed at source should be treated as workers, and all workers including those paid by CIS, should be considered to be employees for the purpose of the scheme.
Urgent action is needed to protect these workers as UK construction sites reduce the number of workers employed as a result of the coronavirus crisis, with further closures expected in the coming weeks and months.
The vast majority of major contractors employ few workers onsite, making the situation in construction is made even more precarious.
Instead work is sub-contracted (often repeatedly) and workers are recruited via labour supply companies or agencies. If the decision is taken to close or mothball a site, the main contractor has no direct employment responsibility for the workforce.
Gail Cartmail, assistant general secretary at Unite, said: “The UK’s bricklayers, carpenters, electricians and plumbers will be deeply worried that if they are officially self-employed they will not be protected by the government’s scheme.
“Over half of the industry is officially self-employed, with most of those bogusly self-employed. This is part of the hire and fire culture existing in construction which results in workers being dumped without warning or compensation during downturns.
“In the short term, the million plus workers paid via the CIS and the 300,000 plus workers paid through umbrella companies must be brought into the scope of the government’s wage support scheme and Unite will be lobbying government to ensure that occurs.
“In the long term, a commission is needed into construction employment to ensure that workers who survive on a feast and famine existence secure proper employment protections.”
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