The union’s general view was that opening up the work permit system to agencies would not contribute in any way to the resolution of recruitment and retention problems in key sectors.

The submission made by Connect advised WPUK to remove several skills sets from its shortage list for the Electronic Engineering sector 'with immediate effect.'

The union used a statement from its IT recruitment company, Opus2, to substantiate its claim that there were no shortages in seven areas listed by WPUK as being 'in critical demand.'

The submission from Amicus-MSF, the technicians' and computer operators' union, called for the existing FTV policy towards agencies to remain unchanged as regards the Financial Services and IT sectors.

It warned: 'A change in policy to allow agencies to apply for work permits in any occupation in the financial services and IT sector would be damaging rather than complementary to the domestic market and could allow migrant workers to become cheap alternatives to existing workers.'

Amicus-MSF also expressed concern over the proposal to allow agencies to 'test' the resident UK labour market to decide whether or not placements could be filled by UK workers first.

The union argued: 'a change in existing policy [to allow agencies to measure skills needs] could result in considerable bias at the expense of the local labour market.'

Attempting to pinpoint where skills shortages had arisen from, the union identified that only 22 per cent of UK IT workers are women, compared to 35 per cent in Europe and 55 per cent in the United States. It said the figures represented 'a misuse of the resources available, rather than inherent labour supply problems in the UK that would necessitate a policy overhaul [of the FTV system].'

The union also attacked the Government for under investing in training and trying to solve the ensuing skills shortages using FTVs, which it called 'a short term view.'

Amicus-MSF also warned that relaxing FTVs for agents would increase the so- called practice of 'cherry picking,' whereby skilled workers from developing countries are 'lifted' by agencies and put to work at client sites in the West, thereby depriving that country of critically needed skills.

The Trades Union Congress (TUC), said it was 'disappointed the emphasis of the consultation seemed to be placed on the interests of employers and agencies.'

The TUC accused WPUK of using 'stealth' to permit agencies to obtain work permits, a move it said would undermine the labour market 'test-based nature' of the rest of the Work Permit system. It said the need for a separate provision specifically for employment agencies was not explained in the consultation paper, adding: 'if this is the intention of the initiative, it should be addressed in an open manner.'

The TUC added that, because of the nature of the employment relationship between an agency and a worker, opening FTVs to agencies 'may exacerbate existing problems... and is likely to lead to an increase in the unfair exploitation of overseas workers with no avenue for redress.'

The TUC joined with Amicus-MSF in expressing concerned that Britain should not solve its skills problems at the expense of less developed countries by allowing agencies to 'poach' their skilled workers.

It concluded: 'Any change to the existing policy preventing agencies and contractors from applying for work permits is highly likely to result in widespread exploitation of the workers concerned, and contribute little to the reduction, in the medium and long-term, of skill shortages, recruitment and retention problems.'

The representative body at the forefront of the opposite end of the argument to allow work permits for agencies has been the Association of Technology Staffing Companies (ATSCo).

Ann Swain, Chairman of ATSCo, said her organisation 'would be pressing hard for the option to allow agencies to apply for work permits for specified occupations and sectors,' prior to the review.

The unions' submissions took a similar line to that held by the Professional Contractors Group, which has campaigned against existing and possible future abuse of the system since it was announced in 1999.

The PCG also made a submission to WPUK and regularly attends skills sector panel meetings where it has had some success in having skills sets removed off the shortage list for UK IT contractors.

Philip Ross, PCG Policy Advisor, said: "We welcome the unions' submissions. It's encouraging to see these organisations stepping up to protect their members' interests against the damage we think further relaxation of the system would do.

"The unions' calls not to be extended the scheme directly to agencies will mean more projects will go to UK contractors rather than to skilled foreign workers who have been imported by agencies to work at a lower rate."

Work Permits UK said it is currently collating and analysing the information received during the recent review and hopes to announce a decision on the outcome by September.

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Richard Powell, © Shout99.com 2002