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Unions urged not to tar all umbrellas with the same brush
by Susie Hughes at 10:46 26/11/14 (News on Business)
Union-led protests against the growing use of umbrella companies in the construction industry risk damaging compliant providers by association, umbrella provider Parasol has warned.
Hundreds of construction workers are today (Wednesday, November 26) due to descend on Westminster in a demonstration organised by UCATT and Unite, with several other protests taking place across the country as part of a co-ordinated campaign, promoted as the Umbrella Company Con-Trick.

The unions claim tens of thousands of 'exploited' construction workers have been forced to work via umbrella companies since legislation designed to combat false self-employment was introduced in April 2015.

Parasol founder and chief executive Rob Crossland said: “We fully support the Government’s efforts to eradicate the scourge of false self-employment in construction and other sectors.

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“UCATT and Unite are performing an important role in ensuring that the new legislation does not result in vulnerable workers being exploited.

“However, what is lacking from the union campaign is a sense of balance. There has been no attempt to distinguish between unethical payroll companies that use dubious methods, and professional employment providers offering contractors and freelancers genuine support.

“Without clarification, the union campaign risks tarring all providers with the same brush.

“That’s why I believe compliant providers such as ourselves may soon have no option but to abandon the term ‘umbrella company’ and re-define what we do. Indeed, this is an idea we will be raising with the Freelancer and Contractor Services Association (FCSA), of which Parasol is a founding member.”

The company has written to both Shadow Business Secretary Chuka Umunna and Shadow Exchequer Secretary Shabana Mahmood – whom are sympathetic to the union campaign – with a view to arranging a meeting with the intention of showing them how a compliant provider operates, and 'to make the point that not all umbrella companies are exploitative cowboys'.

Optionis, the parent company of Parasol, said that Mr Umunna was too busy to attend and they had yet to hear back from Ms Mahmood.

Manging director, Derek Kelly, said: "This gives the clear impression that Labour is happy to indulge in hyperbole when criticising our sector, but is less keen to take the time to understand its nuances and realities.

“Labour’s unwillingness to engage in a constructive dialogue is disappointing, but not surprising. I can only hope that this demonstration does not tarnish the image of legitimate, compliant employment providers in the eyes of contractors and other skilled contingent workers.”

Earlier this week, Labour leader, Ed Milliband, set of his stall to target rogue agencies, which also met with some concern about how far-reaching any measures from a future Labour Government might be. Labour’s plan to crack down on agencies Nov 2014, Shout99)

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Susie Hughes © Shout99 2014


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