A Newport-based managed service provider has welcomed the UK Government’s announcement which has shifted the responsibility for the Gangmasters Licensing Authority (GLA) from Defra to the Home Office, and is calling for even greater transparency in the outsourced labour market.
Gangmasters Licence holder, Smart Solutions, which specialises in providing recruitment and training services, is asking fellow recruitment experts to make a renewed pledge to protect workers’ rights and adhere to proper labour practices whether relating to contracts, pay, health and safety procedures or training after a series of negative reports on some of the industry’s practices.
This announcement comes amid concerns that, as the UK government reduces red tape for businesses in an attempt to stimulate economic growth, the GLA’s authority was being constricted and budget cuts meant that the GLA’s authority to investigate employers was becoming increasingly limited.
However, the move, announced by Prime Minister David Cameron, is set to enhance the GLA’s enforcement and intelligence capabilities. It will now sit alongside the National Crime Agency (NCA), giving it access to expert support from its intelligence hub which builds a single picture of all the threats from serious and economic crime. The GLA will also have access to the NCA’s extensive resources, including 4,500 officers and its presence in 40 countries across the globe.
This change comes as the issue hit the headlines earlier this year in the wake of the tenth anniversary of the Morecambe Bay tragedy where 23 Chinese cockle pickers drowned. Following the disaster in 2004, Tony Blair’s Government brought in the Gangmasters Licensing Act and Gangmaster Licensing Authority to enforce it, making it illegal to operate as a gangmaster without a licence or supply workers without a licence in the agriculture, horticulture, shellfish gathering and fresh food produce and packing industries.
Despite these industries contributing £1.34 billion* to the UK economy, there are currently only 975 licence** holders in the UK. In Wales, given that the meat processing sector alone contributes a turnover of £600 million a year to the economy and supports 5,700 jobs***, the importance of the Gangmaster Licence is particularly potent.
Nathan Bowles, CEO of Smart Solutions, said: “There is growing scrutiny surrounding practices in the recruitment industry, especially following recent allegations that thousands of workers have been mis-sold insurance by recruitment firms. If organisations are, indeed, cutting corners, creating unsafe working environments and risking staff welfare, not to mention breaking the law, then they deserve to be investigated for bringing the rest of the sector into disrepute.
“We welcome this decision from David Cameron as it will only help strengthen the GLA’s position to investigate and prosecute recruiters who engage in suspect labour practices.
“Many people don’t realise that it is not only a criminal offence to supply workers without a Gangmasters Licence, but also to use an unlicensed labour provider, with the maximum penalty of a 51 week prison sentence and a fine. Now that the GLA is becoming a part of the Home Office, it can only serve to bolster its reputation and help to eliminate unscrupulous employers from the labour marketplace.
“There is, of course, a cost associated with accreditation and registration with organisations, such as the GLA, and companies need to make investment a priority. We are seeing a number of low-cost and low-quality start-ups flouting the rules. Regulation is there for a reason and firms ignoring it should not be allowed to operate. Though this announcement is positive news, we now need to have greater clarity and enforcement on these issues to ensure that all firms are on an equal footing and standards in the sector are generally raised.
“At Smart Solutions, we believe in supporting workers properly and we always try to add value to our employee contacts, whether this is through health and safety, welfare holiday pay or more staff training, and increased opportunities so that people are given every opportunity to move forward in their careers.
“It’s a balancing act to make sure we work closely with clients to improve efficiency and reduce costs through effective outsourcing while keeping workers’ welfare front of mind.”