Unions in the engineering construction industry have warned that
the sector is facing a crisis over unfair foreign competition. They
say "widespread industrial unrest" is looming over the use of cheap
imported labour on UK sites.
Concern over alleged "social dumping" is expressed in an emergency
report to the Department of Trade & Industry by the Amicus
union.
The report focuses on a major construction project at Cottam power
station in Nottingham. It says UK firms bidding for the job were
undercut by £2.1m - a third of the total project value - by
the Belgian contractor Vermeeson. The latter is reported to be
planning to use Portuguese labour. This has already provoked
unofficial site action.
The union says its alarm over the Cottam project has been
reinforced by a further case at Mold, in north Wales, where Castle
Cement has let work to another Belgian firm, Pirson. Here the
client is said to have declined to use the National Agreement for
the Engineering Construction Industry and UK labour on the grounds
of price.
The Amicus report claims these developments:
<F03C> Represent social dumping which "if unchecked will
spread unabated throughout the UK construction sector".
<F03C> Run counter to the EU Posted Workers Directive.
<F03C> Exploit the foreign labour involved.
The Amicus report says the sector unions have jointly repudiated
unofficial action "while completely understanding our members'
frustrations".
It warns that unrest at Cottam "has the potential to spread across
the entire UK engineering construction sector with sympathy action
on other sites already being reported".