News

On August 13, GMB members employed by employment agency Tempay in Swindon are protesting outside the headquarters of Wincanton Logistics in Chippenham in a dispute over pay. 

When transposing the EU Directive on temp agency work, the UK government allowed the use of the so-called 'Swedish derogation' - where employment agencies routinely pay agency workers far less than permanent staff doing the same job. Under the UK's regulations, agency workers are entitled to the same pay and conditions as permanent staff doing the same job after 12 weeks. However, a Swedish derogation exempts the agency from having to pay the worker the same rate of pay, as long as the agency directly employs individuals and guarantees to pay them for at least four weeks during the times they can't find them work.

Trade unions in the UK have reported numerous abuses of this loophole in the legislation. 

From GMB website:

http://www.gmb-southern.org.uk/gmb-abba-protest-over-companies-use-of-sw...

At a Swindon distribution depot in South Marston, operated by Wincanton on behalf of a household name retail giant, the majority of permanent warehouse staff by employed through an agency called Tempay. Many of these staff have been working at the same site on permanent assignment for several years, but using Section 10 of the Agency Workers Regulations these staff are guaranteed only 7 or 8 hours work per week, and are paid only minimum wage. This is nearly £2 per hour pay than the warehouse staff employed directly for Wincanton.

GMB members will be dressed as ABBA, with Swedish flags and placards, and there will be a photo opportunity as a GMB “corporate ASBO” is handed into the Wincanton HQ , to draw attention to the unethical use of the Swedish Derogation. They will sing words of Mamma Mia which perfectly sum up their situation with Wincanton –“I’ve been cheated by you since I don’t know when, So I made up my mind, it must come to an end”.

GMB consider that Wincanton are unethically using Section 10 of the Agency Workers Regulations (AWR) to avoid giving effect to Section 5, relating to equal pay. Since the Agency Workers Regulations came into force in 2011, agency workers are guaranteed no less favourable treatment for terms and conditions and working conditions after completing a qualifying period of 12 weeks. However, a legal loophole under section 10, also called the Swedish Derogation, allows employers to pay less, if they guarantee a small payment between assignments.

Kevin Brandstatter, GMB Regional Officer, said, “We are delighted that Clare Moody, Labour MEP for South West, has told us that she will attend this demonstration when we present Wincanton with a ‘Corporate Asbo’ to highlight their unethical use of the Swedish Derogation.”