Building union hails victory

News that the Welsh government will stop workers being wrongly made to work via umbrella companies has been hailed as a “massive victory” by construction union UCATT.

UCATT has been campaigning against the use of umbrella companies since their widescale introduction into the construction industry in April 2014.

Payment via an umbrella company costs some workers £100 a week as they are charged both employers’ and employees’ national insurance contributions.

Last November, UCATT demonstrated at the A465 Heads of the Valleys road widening project over its workers being made to work via umbrella companies.

Subsequently, Edwina Hart, the minister for Economy, Science and Transport in Wales, has confirmed that the practice will stop for workers on this project and they will be employed on a standard PAYE basis either by building contractor Carillion or its own employment agency Skyblue.

She has also instructed officials to change the wording of future Welsh government construction contracts to ensure that umbrella companies can’t be used in the same way again.

Nick Blundell, UCATT regional secretary for Wales and the South West, said: “The use of umbrella companies is unfair and exploitative.

“The decision of the Welsh government to crackdown on their use both on the A465 and on all of their contracts is excellent news.”

Blundell, added: “This is a significant victory in UCATT’s campaign against umbrella companies.

“It is now essential that all other public sector contracts introduce similar measures and umbrella companies are entirely outlawed.”

www.ucatt.org.uk/welsh-government-delivers-massive-victory-against-umbrella-companies