TUC backs campaign to outlaw umbrella companies

TUC Congress has today (Tuesday 13th September) overwhelming backed a UCATT campaign to establish a political campaign to outlaw umbrella companies.

The motion committed the TUC General Council to: “Lobby all political parties to win a commitment for specific legislation that ensures that workers are not exploited by being coerced into undertaking employment where the distinction between the employer and the employee is not accurate or transparent.”

Moving the motion Brian Rye, Acting General Secretary of construction union UCATT, said: “In construction and far too many other sectors the latest form of exploitation is umbrella companies. A form of exploitation created by a multi-million pound industry That exists solely to ensure that workers are denied basic employment rights and guarantees employers’ don’t have to pay national insurance contributions or employee benefits.

There has been a huge growth in umbrella companies in recent years as well as construction, workers in supply teaching, logistics and a number of other sectors are severely affected by umbrella companies.

The motion also stated: “Umbrella companies offer no financial advantages to workers operating under them. The only reason why workers operate under an umbrella company is because they are given no option and it is the only way that they can secure employment.”

The overwhelming support of the TUC is a major fillip to UCATT’s recently launched umbrella company campaign which is designed to put pressure on clients, contractors and agencies to ditch the use of umbrella companies and ban their use on their projects.

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