The union Unite is calling for radical reforms to Construction Industry Scheme (CIS) employment rights, after a Freedom of Information request revealed a large rise in the number of workers paid in this way.
The union found that in 2016/17 around 1.076 million construction workers were paid via CIS, an eight per cent increase year on year. In total, 47% of the entire construction workforce is now paid via CIS.
Unite believes that the rise in workers operating via CIS is an indicator that the government’s plan to reduce bogus self-employment in the construction industry has failed. In 2014 measures were introduced to bar construction workers operating via engagers (employment agencies and payroll companies) from being self-employed.Those who are bogusly self-employed often have the employment characteristics of an employee, but do not have access to basic employment rights.
“We have huge numbers of construction workers being routinely exploited via the government’s own tax scheme and via umbrella companies,” said Gail Cartmail, assistant general secretary of Unite. “The only way that workers will be treated fairly and decently is by introducing clear rules which ensure that workers are either genuinely self-employed or paid by a standard Pay As You Earn method.”
She added that without reforms productivity in construction would remain low, accidents and ill health would be high and the industry would fail to train sufficient numbers of apprentices.
