Union warning of revolt over worker status

The GMB union has issued a warning to contractors planning to switch their workers to direct employment to consult first or face industrial unrest.

Last autumn, Laing O’Rourke’s CTRL 105 project was dogged with unrest as it sought to switch workers to directly employed status. Workers and unions complained that the switch was imposed without consultation.

More and more contractors are looking to switch. CJ understands that all 24 contractors signed up with Construct, the concrete structures group, are in the development stages of converting to 100% directly employed labour. Construct members include major names like John Doyle Construction, Byrne Brothers, PC Harrington and Mitchellson Formwork & Civil Engineering.

Major contractors Costain, Kier and Taylor Woodrow are also believed to be considering their options over what to do with sections of their workforce who are self-employed.

GMB regional organiser Tom Kelly told CJ that although the union supports workers moving to directly employed status, contractors must "tread very carefully".

"The problems on O’Rourke’s sites were because many self-employed workers felt they were being squeezed into the contract," he said. "We don’t want a repeat of this and there needs to be plenty of discussion before contractors sweep in with new changes. We are already getting calls from workers saying that they are being put on the cards and are asking for advice."

Robin Holdsworth, secretary for Construct, confirmed to CJ that all its members are looking to introduce a directly employed workforce, although he was unable to confirm whether member companies had properly consulted their staff.

• The number of contractors looking to put workers on their books is set to increase rapidly in the next few months following the news that London mayor Ken Livingstone expects all contractors to use directly employed labour when working on projects for the 2012 Olympic Games.