Unite, the UK’s construction union, has discovered that workers
operating on the flagship HS2 project at the Old Oak Common site,
are being systematically denied the correct pay rates, resulting
in them losing hundreds of pounds a month.
HS2’s Old Oak Common site is operated by a joint venture between
major construction contractors Balfour Beatty and Vinci. The
joint venture is using logistics contractor Munnelly to recruit
workers to the site.
Following concerns raised by Unite members working on the
project, Unite has learned that Munnelly has employed workers on
contracts paying only a basic rate for 55 hours a week and that
they do not receive any increased overtime rates until they clock
up additional hours.
However, following agreements between HS2, the TUC and Unite, it
was agreed that the project would follow and abide by the
relevant industrial agreement. In this case the relevant
agreement is the Construction Industry Joint Council (CIJC)
working rule agreement.
The CIJC clearly states that a standard working week is 39 hours
and that all hours worked above this should be paid at enhanced
overtime rates (initially time and a half rising to double time
for some weekend working). The CIJC sets minimum rates of pay but
clearly states that overtime rates apply to the agreed basic rate
of pay.
Unite has raised the contract issues concerning Munnelly with
Balfour Beatty and Vinici and has been rebuffed. The joint
venture has wrongly claimed that as Munnelly pay above the London
living wage and above the CIJC minimum wage rates, it is not
required to follow the overtime rules.
Unite has suggested that the joint venture and the union enter
into conciliation with the joint secretaries of the CIJC to
resolve the issue but Balfour Beatty and Vinci have failed to
respond to this suggested way forward.
Unite will instead be raising the matter directly with the CIJC,
to ensure a resolution. The union has also made HS2 aware of the
issue. It is anticipated the client will ensure that its
contractors follow the rules on employment that it has
established.
“Unite regional officer Paul Lomax said: “As we approach
Christmas it is sad to see that Scrooge is alive and well at Old
Oak Common, where Balfour Beatty and Vinci are deliberately
allowing workers to be underpaid for working on HS2.
“Balfour Beatty and Vinci appear to have given Munnelly the green
light to undermine existing agreements, thereby denying workers
on their sites the correct rates of overtime pay.
“HS2 is the largest construction project in the UK and clear
rules have been established to ensure that workers are treated
fairly and decently. It is essential that HS2 ensures that these
are followed, to avoid the project suffering from delays and poor
productivity.
“Unite is entirely committed to ensuring that our members
employed by Munnelly at Old Oak Common are treated fairly, we
will use all our influence both politically and legally to ensure
this occurs. We will also be seeking an industrial solution.
“It is hoped that Balfour Beatty and Vinci realise that workers
need to be treated fairly and receive the full benefits of the
CIJC agreement and work with Unite to ensure that these initial
problems are quickly resolved.”
