A Minister has slammed problems in Leicester’s textile sector, calling reports about worker exploitation nothing short of “shocking”.
Business Minister Paul Scully said new rules will make it harder for bosses in the city to take advantage of staff, following allegation after allegation of poor working conditions and bad pay.
He spoke as the Government said it was going to do more to protect workers’ rights and clamp down on workplace abuse with what it calls a “powerful” new enforcement body.
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The new workers’ watchdog looks likely to take over responsibility for tackling modern slavery, enforcing minimum wage, and helping bosses know where to go for help on workers’ rights.
Mr Scully said as well policing factory bosses it would also help Government take action against big brands that turn a blind eye to abuses.
He told BusinessLive: “Reports about the Leicester garment industry are simply shocking – no worker in 21st century Britain should ever be put in that position.
“We have already set up a dedicated multi-agency taskforce to tackle problems in Leicester and taken action to improve enforcement, but bringing our powers under one roof will mean bad bosses have nowhere to hide.
“The new enforcement body will have a range of powers to get redress for workers and punish those who break the rules, and we are clear that rogue employers who try to exploit their workers will not be let off lightly.”
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Other options being looked at include a garment trade adjudicator to investigate supply chains, or extending the licencing scheme that currently covers employers in the agricultural sector.
Under the existing scheme, businesses that provide workers for agriculture and the fresh produce supply chain must apply for a license and are subject to inspections to ensure they meet legal employment standards.
If things doesn’t improve, the Government is warning it could introduce harsher measures, including bans on goods made in factories where workers have been underpaid.
While the vast majority of textile factory bosses in Leicester look after their workforce, allegations have continued to be made about factories operating under the radar, and exploiting workers.
Back in 2019 HMRC said that over a six year period 24 海角视频 factories were caught failing to pay the minimum wage. A quarter were in Leicester.
The problem has not been helped by shops and websites demanding “fast fashion” – quick turnaround of the latest trends – at the lowest possible price.
As a result smaller manufacturers can be encouraged to cut corners and pay staff less – or go under.
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Last year an undercover Sunday Times reporter alleged that he had seen poor conditions at a Leicester factory apparently subcontracted to make items for Boohoo.
The Sunday paper said the undercover reporter spent two days working in a factory where he was told to expect £3.50 an hour, despite the minimum wage in Britain for anyone aged 25 and over being £8.72.
Boohoo subsequently set up an independent inquiry, dropped a number of its suppliers in the city and stopped using those that subcontracted work. It is also setting up a new factory in Leicester which it will manage itself.
MPs have attacked the city council for failing to do enough, while people working on the ground in Leicester have attacked the government for a lack of support.
Mr Scully said responsibility for tackling modern slavery, enforcing the minimum wage and protecting agency workers was currently spread across three bodies.
If Parliament agrees, It will be brought under one umbrella, creating a new authority to pool intelligence and ensure businesses that break the rules have “nowhere to hide”.
It could also make it easier for workers to blow the whistle on bad bosses, and help them claim holiday pay and statutory sick pay whenever they are denied it.
A government spokesman said increased enforcement will make sure good businesses aren’t undercut by unscrupulous rival employers.
The Government’s plans would see the Gangmasters and Labour Abuse Authority, the Employment Agency Standards Inspectorate and HMRC’s National Minimum Wage Enforcement combined.
The new body will also continue a “naming and shaming” scheme which identifies companies that fail to pay workers what they are owed and can hit rogue employers with fines of up to £20,000 per worker.
Mr Scully said: “The vast majority of businesses want to do right by their staff, but there are a minority who seem to think the law doesn’t apply to them.
“Exploitative practices like modern slavery have no place in society.
“This new workers’ watchdog will help us crack down on any abuses of workers’ rights and take action against companies that turn a blind eye to abuses in their supply chains, while providing a one-stop shop for employees and businesses wanting to understand their rights and obligations.”