Union attacks offshore firms

Transport and general union T&G has launched a campaign against the practice of employers moving offshore. Employees lose key employment rights, including the right to a state pension if their company switches to tax-free havens like Guernsey and Jersey.

The T&G has highlighted the problem after 600 tugboat workers employed by Serco Denholm were told that the company was moving offshore. The workers, originally employed by the Ministry of Defence, were contracted-out under the TUPE transfer regulations. They were led to believe that this protected their terms and conditions but it is proving not to be the case. Since the law defines them as "mariners" the company can exploit a tax loophole to avoid paying tax and National Insurance.

Five years ago an Environment, Transport and Regional Affairs report on the shipping industry said that the government should "determine urgently whether any amendment to employment rights' legislation is required to respond to the increased use of off-shore contracts". The government said that it recognised that the decision to move offshore "may disadvantage those employed on that vessel" but seemed more concerned that shipowners would not continue to employ British crews unless they could avoid tax and National Insurance.

Jack Dromey T&G national organiser describes the company's move as "a shameful scam by Serco to cut costs by avoiding tax to win a cut-throat competition". The union is calling on the government to deny work to off shore companies.