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Labour in foreign workers claim row Labour in foreign workers claim row
(about 1 hour later)
The Labour Party has become embroiled in a row with two of the UK's biggest retailers over claims they favoured Eastern European workers over Britons.The Labour Party has become embroiled in a row with two of the UK's biggest retailers over claims they favoured Eastern European workers over Britons.
Tesco and Next reject the claims, which had been due to be made by shadow immigration minister Chris Bryant in a speech that was leaked to newspapers.Tesco and Next reject the claims, which had been due to be made by shadow immigration minister Chris Bryant in a speech that was leaked to newspapers.
Before the speech, he said he wanted to "refocus the economy" so companies did not have to "bring in workers".Before the speech, he said he wanted to "refocus the economy" so companies did not have to "bring in workers".
Norman Rose, of the Recruitment Society, accused Labour of "jingoism". Mr Bryant modified his remarks on Next and Tesco when he made the speech.
In extracts from the speech published at the weekend, Mr Bryant claimed Tesco had moved a distribution centre to Kent where "a large percentage" of staff were "from Eastern bloc" countries. In extracts published at the weekend, Mr Bryant claimed Tesco had moved a distribution centre to Kent where "a large percentage" of staff were "from Eastern bloc" countries.
Staff at an original site, "most of them British, were told that they could only move to the new centre if they took a cut in pay", he was reportedly due to say.Staff at an original site, "most of them British, were told that they could only move to the new centre if they took a cut in pay", he was reportedly due to say.
'Deeply disappointed''Deeply disappointed'
But the supermarket giant said it was "wrong to accuse Tesco of this", saying it did not have such a distribution centre in Kent.But the supermarket giant said it was "wrong to accuse Tesco of this", saying it did not have such a distribution centre in Kent.
It said in a statement that it worked "incredibly hard to recruit from the local area" and had just employed 350 "local people" for its new distribution centre in Dagenham, east London.It said in a statement that it worked "incredibly hard to recruit from the local area" and had just employed 350 "local people" for its new distribution centre in Dagenham, east London.
In other extracts of the speech, Mr Bryant was reportedly expected to say: "Look at Next plc, who last year brought 500 Polish workers to work in their South Elmsall [West Yorkshire] warehouse for their summer sale and another 300 this summer. When he delivered his speech, Mr Bryant said Tesco was a "good employer and an important source of jobs in Britain".
He added: "Tesco are clear they have tried to recruit locally. And I hope they can provide more reassurance for their existing staff. But the fact that staff are raising concern shows how sensitive the issue has become."
In other pre-reported extracts of the speech, Mr Bryant was expected to say: "Look at Next plc, who last year brought 500 Polish workers to work in their South Elmsall [West Yorkshire] warehouse for their summer sale and another 300 this summer.
"They were recruited in Poland and charged £50 to find them accommodation."They were recruited in Poland and charged £50 to find them accommodation.
"The advantage to Next? They get to avoid agency workers regulations, which apply after a candidate has been employed for over 12 weeks, so Polish temps end up considerably cheaper than the local workforce, which includes many former Next employees.""The advantage to Next? They get to avoid agency workers regulations, which apply after a candidate has been employed for over 12 weeks, so Polish temps end up considerably cheaper than the local workforce, which includes many former Next employees."
But a Next spokesman said the measure was not designed to get around the regulations, adding: "We are deeply disappointed Mr Bryant did not bother to check his facts with the company before releasing his speech.But a Next spokesman said the measure was not designed to get around the regulations, adding: "We are deeply disappointed Mr Bryant did not bother to check his facts with the company before releasing his speech.
"In fact, agency workers from Poland cost us exactly the same as local agency workers and our existing employees."In fact, agency workers from Poland cost us exactly the same as local agency workers and our existing employees.
"The only reason we seek the help of people from Poland is that we simply can't recruit enough local people to satisfy these spikes in demand for temporary work.""The only reason we seek the help of people from Poland is that we simply can't recruit enough local people to satisfy these spikes in demand for temporary work."
Mr Bryant's speech later is now expected to reflect subsequent discussions with Tesco and Next, and before it he sought to clarify his intentions. When he gave the speech, Mr Bryant did not mention numbers of employees taken on by Next or any charge for accommodation.
He told BBC Radio 4's Today programme: "I fully accept that Next and Tesco often go the extra mile to try and recruit local workers. However, he maintained that the company had used the flamejobs.pl recruitment agency, whose website was written "entirely in Polish".
"The difficulty is, I would say, that the way we regulate our economy and the labour market in the UK has meant that sometimes there are negative sides to migration in terms of the labour market, in particular for those who are within spitting distance of the national minimum wage. He added: "Now of course short-term contracts and work are sometimes necessary in order to satisfy seasonal spikes in demand.
"The very simple point is that both Tesco and Next have had to use non-EU nationals in their new operations - in Next's case, two summers in a row in relatively large numbers. "But when agencies bring such a large number of workers of a specific nationality at a time when there are one million young unemployed in Britain, it is right to ask why that is happening."
"My question is, and always was going to be, and still remains today, when we have one million unemployed youngsters under the age of 24 in this country, and we have a very high level of long-term unemployment, is there a way in which we can regulate labour markets in this country better so that foreign migrant workers are not exploited, as happens in some cases?
"I am not saying that specifically about Tesco and Next."
After the correction by Tesco, Mr Bryant said he had always meant to refer to the company's distribution centre in Essex - referring to the one in Dagenham - rather than Kent.After the correction by Tesco, Mr Bryant said he had always meant to refer to the company's distribution centre in Essex - referring to the one in Dagenham - rather than Kent.
"I don't know where Kent came into it," he said. "It was always Essex.""I don't know where Kent came into it," he said. "It was always Essex."
'Ruthless''Ruthless'
Robert Halfon, Conservative MP for Harlow, said many of his constituents employed at the Tesco distribution site were forced to take redundancy when operations shifted to Dagenham rather than a pay cut of up to £10,000.Robert Halfon, Conservative MP for Harlow, said many of his constituents employed at the Tesco distribution site were forced to take redundancy when operations shifted to Dagenham rather than a pay cut of up to £10,000.
He accused Tesco of being "a ruthless company" and said the Tories should be "the party of small business and fair business".He accused Tesco of being "a ruthless company" and said the Tories should be "the party of small business and fair business".
Mr Rose, executive director of the Recruitment Society, an industry body, told BBC Radio 5 live that Labour had got it wrong.Mr Rose, executive director of the Recruitment Society, an industry body, told BBC Radio 5 live that Labour had got it wrong.
"They don't have their facts correct and it's part of a current jingoism that's going around about British jobs for British workers," he said."They don't have their facts correct and it's part of a current jingoism that's going around about British jobs for British workers," he said.
"Jobs are for people who are willing to take them to do whatever the company requires, and more investigation needs to be undertaken to make sure companies are not wrongly judged for taking normal commercial decisions.""Jobs are for people who are willing to take them to do whatever the company requires, and more investigation needs to be undertaken to make sure companies are not wrongly judged for taking normal commercial decisions."
Peter Mooney, head of consultancy at Employment Law Advisory Services, also told 5 live the national minimum wage and agency worker regulations applied to all EU citizens employed in the UK.Peter Mooney, head of consultancy at Employment Law Advisory Services, also told 5 live the national minimum wage and agency worker regulations applied to all EU citizens employed in the UK.
"They are entitled to recruit to fulfil a seasonal need. Where they get their workers from, as long as it's within the law, is absolutely fine.""They are entitled to recruit to fulfil a seasonal need. Where they get their workers from, as long as it's within the law, is absolutely fine."
On Friday the Advertising Standards Authority (ASA) announced that it was investigating, after 60 complaints, a scheme in which vans drove through London calling on illegal immigrants to "go home or face arrest".On Friday the Advertising Standards Authority (ASA) announced that it was investigating, after 60 complaints, a scheme in which vans drove through London calling on illegal immigrants to "go home or face arrest".
A Home Office spokesman said it was in contact with the ASA and would "respond in due course".A Home Office spokesman said it was in contact with the ASA and would "respond in due course".
In his speech, Mr Bryant is due to say that such "cheap and nasty gimmicks" by the government left "a nasty taste in the mouth". In his speech, Mr Bryant said that such "cheap and nasty gimmicks" by the government left "a nasty taste in the mouth".
Mr Bryant will also propose new powers to tackle an "epidemic" of sham marriages, and call for the Home Office to be given more information and powers to investigate suspicious marriages. He also proposed new powers to tackle an "epidemic" of sham marriages, and call for the Home Office to be given more information and powers to investigate suspicious marriages.
A Downing Street source said net immigration had fallen by a quarter since the general election and that Labour should apologise for having let immigration get out of control when in power.A Downing Street source said net immigration had fallen by a quarter since the general election and that Labour should apologise for having let immigration get out of control when in power.