Plans to heavily penalise firms for foreign ad dodge

FIRMS undercutting British workers’ wages by offering jobs abroad and not at home would be fined thousands of pounds by Labour.

The party is vowing a clampdown on the practice as part of a 20-point plan to boost the economy if it wins the June 8 general election.

Shadow Business Secretary Rebecca LongBailey said the divisive ads can lead to foreigners being recruited on less than British colleagues.

This and the use of job agencies to further push down wages take advantage not only of staff from abroad but also UK workers, she said.

Ms Long-Bailey said Brits should also have the chance to fill job vacancies. She said: “It’s not just immigrant workers who are exploited – it’s working Brits as well. This isn’t a new thing.”

Her former dock worker dad, who moved to a factory, saw many friends lose their jobs and an influx of agency staff on lower wages.

Culprits

She said: “It caused an untold amount of stress on the workers there. And then the agency people were facing insecurity.”

Labour believes large fines for firms flouting the job advert ruling would both punish and deter the culprits, especially if the penalties carried on until the practice was stopped.

Ms Long-Bailey said: “Whatever the nationality of the person who is being paid less money it is exploitation. It’s exploitation of the people on that wage and of the rest of the workforce.

She claimed research showed companies are taking advantage of EU rules over foreign agency staff and some are paid three or four times less than the average worker.

“If they work in the UK on a short- term contract they’re only allowed to be paid the minimum wage. Some people have set up sham agencies, recruited large numbers of foreign workers and brought them into the UK.

“They’ve then paid them far less than people who were living here. That’s caused massive social problems. We’ll end undercutting because it’s not fair to anyone.” Ms Long-Bailey believes the Tory government has failed to guarantee workers’ rights and Labour plans would create a better environment for all.

She said: “In the last few years with this government has got progressively worse. Low pay and insecurity have mushroomed.”

The Labour job advert proposal is seen as part of a bigger move to create a more stable and secure environment for workers and businesses which, according to a TUC study, encourages more high-skilled jobs, investment in technology and increased productivity.

Ms Long-Bailey said where there is a low-paid workforce and wages being undercut there is a race to the bottom. And although productivity levels is a huge issue for the economy the Government had done nothing to tackle it.

Ms Long-Bailey remarked: “The last seven years has been like Margaret Thatcher turbocharged. I don’t believe Theresa May one bit when she says she’s going to protect workers