Unite wins ‘umbrella company’ ban


General union Unite and construction firm Balfour Beatty have reached an agreement banning workers from being employed through “umbrella companies” on one of the firm’s major highways contracts.


Under an umbrella company arrangement, workers must pay both the employer’s and their own national insurance contributions, in addition to income tax, amounting to 46% of eligible earnings, as well as other charges.


Balfour Beatty’s Area 10 highways contract covers motorways and major roads in Merseyside, Cheshire, Lancashire and Greater Manchester. As well as banning umbrella arrangements, the company has agreed that it will permanently employ any agency worker who has been on the project for at least three months.


Unite regional co-ordinating officer Andy Fisher said: “This is a significant decision. Not only does it alleviate the misery of umbrella companies on this contract, but it demonstrates that, through negotiation, Unite is able to stamp out the misery of umbrella company exploitation.”


The company has already announced that it will not be bidding for the Area 10 contract next year, when is to be re-tendered. 


However, Fisher said that the union aims to make sure that the agreements on umbrella companies and agency labour are extended to whoever inherits the contract, and is also looking “to extend these commitments to other similar contracts”.

www.unitetheunion.org/news/unite-secures-north-west-highways-umbrella-company-ban