Umbrella firms rain problems on workers

Construction union UCATT is continuing to campaign against umbrella companies and held an Umbrella Company Day of Action at the end of last year with demonstrations throughout the UK.

The union is highlighting the particular problems associated with umbrella companies which apply to construction workers, many of whom have no choice but to work under them.

Among a host of problems (as UCATT’s report, The umbrella company con-trick points out), umbrella companies require a worker to pay for the employers’ and the employee’s National Insurance contributions — 25% of eligible earnings.

The companies often use a range of complex and sophisticated contractual arrangements (see Labour Research, June 2014, pages 9-11) and workers receive very complex payslips. This can make it difficult or even impossible for them to understand all the deductions being made from the pay.

Steve Murphy, UCATT general secretary, said: “Construction workers are being exploited by construction companies who are prepared to use every trick in the book to boost their profits at the expense of workers.”

General union Unite also supported the day of action. Gail Cartmail, Unite assistant general secretary, said that construction workers are crucial in laying the foundations for public services, which are dependent on all workers paying income tax and National Insurance.

“The injustice of umbrella companies is that they rip off workers who are forced to pay more than their fair share.”

www.ucatt.org.uk/umbrella-companies