Outsourcing – putting parts of an organisation’s business out to tender to be carried out by other companies is an unfair employment practice, though unfortunately legal in the UK.
Almost always outsourcing leads to lower standards of service, the job in various ways not being done as well, cutting corners in various ways to cut the costs. It may not even actually reduce the costs of the organisation, but enables them to avoid the legal responsibilities of being an employer, while still having effective control over the hours, pay and conditions of workers.
Cutting costs means paying the workers less and working them harder, cutting conditions of service to the bone, employing extra managers to bully them into doing jobs faster. Often too, cutting safety standards, and failing to provide proper equipment to keep them safe at work.
Many of the workers who suffer the worst of this are migrant workers, sometimes with a poor knowledge of English and not aware of their rights under our labour laws, and companies employing them have often taken advantage of this. Changes in employment law brought in under the Tories since 2010 have made it more difficult and expensive to take employers to tribunals, and few of the older unions have taken on the task of recruiting and representing low paid workers on any major scale.
Over the past ten years or so, new grass roots worker-led unions have taken up the challenge of representing low-paid workers – many of whom are outsourced – along with a few branches of the major unions, and a few campaigning unions such as the Baker’s union. They have called for all workers to be paid a true living wage – in London the London Living Wage – and for conditions of service – sick pay, holiday pay pensions etc – on a similar basis to those enjoyed by higher paid workers.
On Feb 26, coordinated strike action was being taken by outsourced workers at the Ministry of Justice, Dept for Business, Energy & Industrial Strategy and the University of London, organised together by the two grass roots unions, the United Voices of the World (UVW) and the Independent Workers Union (IWGB) and by the PCS branch from the Dept for Business, Energy & Industrial Strategy.
It was also the day of a High Court challenge by the IWGB to extend the legal rights of 3.3 million outsourced workers by bringing the concept of ‘joint-employer’ status, long accepted in the US, to English law. Unfortunately the court, in a decision announced later, rejected the union’s case, though the fight continues, and the Labour Party have promised to put an end to the unfair employment practice of outsourcing when in government.
The day had started early for the protesters, with a picket at the University of London and a protest outside the court. I met with them after they had marched on to Parliament Square and then continued to protests at BEIS and the Ministry of Justice.
Rally for an end to Outsourcing
Outsourced Workers protest at BEIS
Outsourced Workers at Justice ministry
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