TUC's Paul Nowak visits UCATT workers on Nottingham trams project

On November 11th 2014, the TUC’s Assistant General Secretary, Paul Nowak and Midlands TUC Regional Secretary, Lee Barron joined UCATT Acting Regional Secretary Shaun Lee, UCATT members and Organisers along with company representatives to visit the Nottingham Tram extension Project.

The visit was organised to gain an understanding about the level and successes of joint working between the main contractors and UCATT that has resulted in a positive agreement that has helped overcome some of the worst aspects involved with Umbrella Companies.

Despite a slight over run, the massive project, equipping the city with 3 tram lines, is nearing completion (June 2015) and has employed and trained over 1,500 operatives (at its peak). Moreover, a large proportion of the workforce has come from the local areas and helped to provide skills and opportunities for many people from deprived backgrounds with no previous skills or experience.  

However, as with many construction sites, Umbrella Companies have been a particularly hot topic that UCATT have been grappling with. Workers recruited through Agencies, (like the majority at the Tram project) are paid through Umbrella Companies, but these companies charge for this service. On top of this, workers are also forced to pay Employers National Insurance as well as Employees NI. UCATT understandably argues that such practices exploit legal loopholes, and serve to cut workers and Treasury incomes. More information on this can be found in this latest UCATT publication: The Umbrella Company Con Trick - ~http://tinyurl.com/ncanw5h

Nevertheless, through working with the Nottingham City Council and the contractors, UCATT have been able to secure the following agreements for members:

•       Agreement for pay roll fees (+£20 per week) not to be deducted from workers pay. (These fees have been met by the contractors and Agencies instead)
•       Access to, and opportunity to present at, daily site inductions.
•       Unrestricted access to site canteens and members.
•       Regular meetings with HR/management set up to resolve member issues.

Promoting direct employment, with proper contracts is naturally the preferred employment model but Umbrella Companies will continue to operate in construction until adequate legislation is introduced. That being the case, UCATT argue that the agreement on the Nottingham Tram Project for the workers to be protected from pay roll fees is welcomed, and is something UCATT believe should be rolled out across other projects, particularly public contracts, where such practices exist.