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| UK must end dependency on low-wage foreign labour, says Ed Miliband | UK must end dependency on low-wage foreign labour, says Ed Miliband |
| (35 minutes later) | |
| Labour has clashed with big employers over plans to stop companies hiring tens of thousands of foreign workers through agencies at cheap rates. | Labour has clashed with big employers over plans to stop companies hiring tens of thousands of foreign workers through agencies at cheap rates. |
| Ed Miliband said the key to addressing public concerns about immigration was preventing companies abusing employment laws and ending the UK's "chronic dependency on low-skill, low-wage labour" from abroad. | Ed Miliband said the key to addressing public concerns about immigration was preventing companies abusing employment laws and ending the UK's "chronic dependency on low-skill, low-wage labour" from abroad. |
| In an article for the Independent on Sunday, the Labour leader said it was not prejudiced to believe that the immigration of high levels of cheap workers from the EU was harming the chances of some of Britain's workers. | In an article for the Independent on Sunday, the Labour leader said it was not prejudiced to believe that the immigration of high levels of cheap workers from the EU was harming the chances of some of Britain's workers. |
| "Unless we act to change our economy, low-skill immigration risks making the problems of the cost-of-living crisis worse for those at the sharp end," Milband said. | "Unless we act to change our economy, low-skill immigration risks making the problems of the cost-of-living crisis worse for those at the sharp end," Milband said. |
| The agency workers directive is meant to ensure that agency staff have the right to the same pay as permanent staff after 12 weeks in the job. But agency staff – many of whom come from abroad – can still be paid up to £135 a week less than their colleagues because of a loophole in the law, according to the TUC. | The agency workers directive is meant to ensure that agency staff have the right to the same pay as permanent staff after 12 weeks in the job. But agency staff – many of whom come from abroad – can still be paid up to £135 a week less than their colleagues because of a loophole in the law, according to the TUC. |
| The loophole – known as the Swedish derogation – exempts employers from having to give workers equal pay if they are on contracts with an agency and paid in between assignments. | The loophole – known as the Swedish derogation – exempts employers from having to give workers equal pay if they are on contracts with an agency and paid in between assignments. |
| Miliband has pledged to close this loophole by changing the way the directive is interpreted, in a move that particularly affects industries such as farming and food production, which tend to employ a lot of cheap labour from abroad. | Miliband has pledged to close this loophole by changing the way the directive is interpreted, in a move that particularly affects industries such as farming and food production, which tend to employ a lot of cheap labour from abroad. |
| However, the CBI, which represents large companies, said such a move could cost jobs and harm the economy. "Undermining this flexibility would put the very system which has kept unemployment down at risk," said Katja Hall, the CBI's chief policy director. "The agency directive was not welcomed by business, and further gold-plating of EU rules can only cost jobs." | However, the CBI, which represents large companies, said such a move could cost jobs and harm the economy. "Undermining this flexibility would put the very system which has kept unemployment down at risk," said Katja Hall, the CBI's chief policy director. "The agency directive was not welcomed by business, and further gold-plating of EU rules can only cost jobs." |
| The Recruitment and Employers Federation, which represents the recruitment industry, said Labour's proposals were "wholly misleading" and nothing to do with immigration. | |
| "These arrangements are part of the 2010 agency workers regulations that were agreed following consultation between the last Labour government, business and the unions and apply to British and non-British workers," a spokesman said. "Workers on PBA contracts are employed by their agency on a permanent basis, giving them greater security and all the benefits that come with permanent work such as protection from unfair dismissal, maternity leave and statutory redundancy pay. Is the Labour party really saying they want to deny British temps the option of permanent employment?" | |
| Conservative sources rejected Labour's argument, denying there was a loophole and pointing out that the last government oversaw the introduction of the agency workers directive in 2008. At that time a deal over its terms was struck between the government, CBI and trade unions. | Conservative sources rejected Labour's argument, denying there was a loophole and pointing out that the last government oversaw the introduction of the agency workers directive in 2008. At that time a deal over its terms was struck between the government, CBI and trade unions. |
| However, Labour sources said problems had emerged since the directive was implemented under the coalition. "It wasn't clear it was going to be abused in Britain. It isn't in other countries," one said. | However, Labour sources said problems had emerged since the directive was implemented under the coalition. "It wasn't clear it was going to be abused in Britain. It isn't in other countries," one said. |
| Labour sources said they did not want to get rid of the Swedish derogation entirely, but the way it was interpreted could be changed to make sure temporary and permanent workers receive equal pay. | |
| In his article, Miliband repeated his admission that his party got it wrong on immigration under the last government by failing to impose temporary controls on migration from Poland when it joined the EU. | In his article, Miliband repeated his admission that his party got it wrong on immigration under the last government by failing to impose temporary controls on migration from Poland when it joined the EU. |
| However, he said the main thing to do now was tackle the root causes of public concern over immigration, including the employment practices that allow companies to exploit cheap labour from abroad at the expense of British workers. | However, he said the main thing to do now was tackle the root causes of public concern over immigration, including the employment practices that allow companies to exploit cheap labour from abroad at the expense of British workers. |
| "Whatever the numbers of people that eventually come here, the concern that this has highlighted is not going away," Miliband said. "Our country faces a fundamental question. Britain has succeeded through the centuries as an economy that reaches outwards to the world. Can we maintain that tradition and meet deep public concern about immigration? | "Whatever the numbers of people that eventually come here, the concern that this has highlighted is not going away," Miliband said. "Our country faces a fundamental question. Britain has succeeded through the centuries as an economy that reaches outwards to the world. Can we maintain that tradition and meet deep public concern about immigration? |
| "I believe we can. But only if we understand the sources of anxiety and act on them. This cost-of-living crisis is the most important context for the debate about immigration. It understandably makes people more fearful of the change that immigration brings." | "I believe we can. But only if we understand the sources of anxiety and act on them. This cost-of-living crisis is the most important context for the debate about immigration. It understandably makes people more fearful of the change that immigration brings." |
| Labour also wants to impose higher fines on firms that fail to pay the minimum wage, ban recruitment agencies for hiring only from abroad and force large firms hiring skilled workers from outside the EU to take on apprentices at the same time. | Labour also wants to impose higher fines on firms that fail to pay the minimum wage, ban recruitment agencies for hiring only from abroad and force large firms hiring skilled workers from outside the EU to take on apprentices at the same time. |
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