|
The programme investigated the failings of the current 'Points-Based System' of immigration, exacerbated by possible misuse of 'Intra Company Transfer' (ICT) visas by blue chip firms. File on 4, which had asked previously Shout99 readers for their assistance in the research, exposed the possible large scale use of 'onshore offshoring' by BT to replace contractors, in the firm's attempts to cut costs.
A former contractor at BT's Global Services Unit, told the programme that IT contractors laid off recently by BT, were told workers brought from India to the UK cost less, claiming they received about half the rate for the job he was paid.
But BT said it was looking to cut its reliance on contractors and the Indian firm was supplying specialist staff.
Intra company transfers
Immigration rules allow companies to employ their own workers in the UK, from non EU countries using intra company tranfer visas where staff had specific company knowledge or distinct skills which were not available in the UK.
A BT spokesman said the company had a long-established relationship with Tech Mahindra and it made business sense to tap into their highly-skilled workforce.
The company was looking to reduce the use of 'expensive contractors'. Staff were told they were being replaced by new staff who were employed at lower rates of pay by Tech Mahindra, an Indian company in which BT Global Services has a 31 per cent stake.
Tech Mahindra told File on 4: "Our operations in the UK comply with all the prevalent laws governing immigration and work visas. Employees are transferred to the UK if and only if their particular skills are needed to execute a client's projects."
Loophole
Ann Swain, head of the agents' group, the Association of Professional Staffing Companies (APSCo), claimed that it was the potential widespread abuse of on-site, off-shoring that has caused concern .
Advertisement 
Her comments were disputed by Keith Sharp, marketing director of NASSCOM, the body which represents companies such as Tech Mahindra. He told the programme: "These are not permanent UK jobs. Where we have permanent UK jobs, our preference is to fill those with UK nationals.
"Government guidelines are very clear that there can be no cost advantage in bringing in an Indian IT professional on a temporary assignment as opposed to a local contractor.
"If there is non-compliance or any abuse that should be stopped."
In March Professor David Metcalf of Migration Advisory Committee, which advises on the kind of the jobs the UK might need migrants to fill, said his Committee would be investigating on-site/off-shoring.
Professor Metcalf told the Commons Home Affairs Committee, "The people coming in to do IT jobs are disproportionately coming in through the intra company transfer route and we will be having a proper look at that in our review.
"If there were real elements of, for example displacement or undercutting, we will report on this."
Condemnation
Freelancer trade group, the Professional Contractors Group (PCG), also issued a strong condemnation of the current immigration system, in response to the programme.
PCG Managing Director, John Brazier, said: "The revelations in the recent edition of 'File on 4' come as no surprise to us. In particular, we are extremely disappointed in this behaviour by BT, and by attempting to cut costs in this way they are ignoring the substantial talent pool of highly experienced, specialised IT contractors that exists in the UK.
"We had been hearing for some time from contractors that BT may perhaps be one of the worst offenders replacing contract staff with workers on Intra-Company Transfer visas. Such behaviour reduces opportunities for IT contractors in the UK, and in a recession opportunities should be created, not limited.
"We believe the system should be amended, and Professor David Metcalfe's recent comments stating that the Migration Advisory Committee (MAC) will be exploring potential options for doing so are encouraging. We will shortly be making our submissions to the MAC calling for significant amendments to the system. Ideally, we would like to see no position filled by an Intra Company Transfer without first ensuring that no UK worker is available to fill the post, in a similar manner to that of non-ICT visas.
"PCG has been campaigning on this issue for many years and we are pleased the Government is listening. We have had a seat on the Migration Advisory Committee's Stakeholder forum since its inception and we regularly make submissions to the MAC. As a body, it has great and positive potential to reform the system. Our recent evidence gathering campaign has shown that abuses of the system do take place and thus it urgently needs reform. Contractors are losing out, and in a recession, action needs to be taken to protect livelihoods"
--
If you wish to comment on this article, please log in and use the Reply button below. Registering is free and easy - see 'Join Shout99'.
-
Susie Hughes © Shout99 2009
|
