Ahead of the second reading of Labour MP Andrew Miller’s Private Members Bill in the House of Commons today, the TUC has produced a briefing on agency working. TUC General Secretary Brendan Barber said: ‘Employers cannot claim that agency workers are all fairly paid and then say that it will be prohibitively expensive to pay them fairly. But even their more plausible arguments such as better rights will stop agency work providing a bridge into permanent jobs for the unemployed do not stack up.’ The briefing is below and the CBI briefing on the same topic can be read here.
How many agency workers are there?
The correct answer is that no one knows for sure. The Government’s Labour Force Survey (LFS) says there are around 260,000, but agency trade body the Recruitment and Employment Confederation (REC) claims to place 1.25 million workers on any one day.
The LFS figures are certainly an underestimate as this is a telephone household survey. It makes no effort to trace workers living at their place of work – not uncommon in agency placed workers in the agriculture, hospitality and care sectors – and seriously underestimates non-English speakers, long hours workers, multiple occupation households, which are all characteristic of migrant and other groups high in agency working.
The big difference means that either the REC figures are right and there are up to one million invisible agency workers, who do not show up in official statistics, or the REC figures are an overestimate. The LFS sample is usually used for the statistical profiling of agency workers but is likely to be skewed towards well paid, relatively stable workers. Put simply, it is more likely that a supply teacher will be included in the LFS than a Lithuanian fruit picker.
What issues are at stake?
Unions are supporting two routes for better agency worker rights, and in particular giving agency workers the rights to equal treatment with permanent staff doing the same job.
The draft EU Temporary Agency Worker Directive (TAWD) has failed to make progress since 2002 due to a failure to reach agreement in the Council of Ministers. The UK has led a blocking minority, but there are signs that support for the UK is diminishing and that once the Lisbon Treaty has been ratified, ministers will no longer be able to block progress.
A second private members’ bill on agency workers (moved by Andrew Miller MP) is to be debated in the House of Commons today. An earlier Bill introduced by Paul Farrelly MP was talked out with Government support.
The Directive is part of a family of three measures to improve protection for what the EU calls atypical workers. Yet the directives to protect part-time workers and temporary workers were passed in 1997 and 1999. Only agency workers remain unprotected.
There is a separate issue about whether there is effective enforcement of existing rights for agency workers, given the many media exposures of exploitation of migrant and other vulnerable workers placed through agencies. The Gangmaster’s Licensing Scheme – opposed by the Government until the Morecambe cockle pickers’ tragedy – only covers some sectors. Unions support better enforcement and licensing, but action on enforcement is not sufficient. Both agency and existing permanent staff deserve protection, by stopping the replacement of secure jobs with insecure agency staff on worse terms and conditions.
Are unions opposed to agency working in principle?
No. As TUC General Secretary Brendan Barber has said: ‘There is nothing wrong with agency working. Matching employers with short-term needs with employees with short-term availability or who genuinely prefer working this way, as some do, is not just a perfectly respectable business, but good for the wider economy.’ (continue reading…)