Member Article

Storm brewing for York’s Shepherd Construction as UCATT begins fight against sub-contracts

A construction union demonstration by UCATT at a Leeds University site yesterday is set to cause trouble for York-based Shepherd Construction.

Shepherd Construction previously employed workers directly, and, according to UCATT, on good terms and conditions.

Shepherd is now not employing workers directly and it sub-contracts work. The main sub-contractor on the library is Moortown.

Despite workers not being employed directly, UCATT have been informed that an “employees forum” has requested that no sales representatives be allowed on the site as it upsets the workers during their breaks.

Regional organiser Mark Martin spoke to Bdaily earlier today and said that talks had been arranged with university unions to take action against the ban.

Mark Martin UCATT regional organiser, said: “What have Shepherd’s and Moortown got to hide, by barring UCATT from the site, they are clearly worried about something. If they haven’t got anything to hide they should allow the union access to speak to workers.

“Leeds University is the client and they should be forcing these companies to allow normal employment practices to occur.”

UCATT also understands that many of the workers are being paid via so-called umbrella companies. All umbrella companies operate slightly differently but in most cases workers are required to pay both employers and employees national insurance contributions, over 25% of eligible earnings.

Often the worker’s holiday pay is rolled up in their rate, denying them paid leave and in many cases the worker is also placed on a zero hours contract.

The use of umbrella companies has increased dramatically in recent months. In April 2014 the Government changed the rules which now prevents employment agencies and payroll companies classifying their workers as self-employed. Rather than pay workers normally through PAYE many have instead opted for the umbrella company model, which leaves the worker bearing the additional costs.

Mr Martin, added: “Forcing workers to operate via umbrella companies is a form of exploitation as the worker has to pay the costs that their real employer should be paying. It is outrageous that these practices are being allowed to occur in Leeds.”

Bdaily’s requests for comment from Shepherd were unanswered, but according to the Construction Enquirer, a Shepherd spokesperson told the Enquirer: “Trade unions are welcomed on any of our sites and UCATT is no exception.

“The feedback we receive from workers is that impromptu visits can be disruptive so, as previously discussed with UCATT, we respectfully request that all visits are prearranged to fit with our construction schedules onsite.

“Each month, such requests are discussed with all workers – both direct employees and sub-contractors – and are scheduled according to their preference.

“As a specific reason for UCATT’s visit had not been stated by its representatives, workers onsite have so far stated a preference not to host a site visit.

“We are in constant dialogue with onsite workers and, should this situation change, we would of course facilitate a meeting.

“It is common practice in the construction industry to subcontract services. It is our policy, however, not to use umbrella companies to pay Shepherd employees.

“All of our agreements with subcontractors require them to operate in both a legal and compliant manner.”

This was posted in Bdaily's Members' News section by Clare Burnett .