Investigation finds major supermarket supplier breached labour guidelines

5 August 2011

The Gangmasters Licensing Authority (GLA) has concluded its investigation into agency labour suppliers at the Kent-based agricultural producer Thanet Earth and found that legal guidelines have been breached.

Unite welcomes this investigation, but calls on the supermarket clients - including Asda, M&S and Sainsbury’s - to go further and uphold the commitments they have signed up to under the Ethical Trading Initiative (ETI).

The GLA found that the agencies failed over the payment of wages and failed to have adequate grievance and disciplinary procedures in place. They also criticised Thanet Earth Marketing Ltd for failing to take complaints over pay seriously, despite Unite helping over 70 workers make complaints.

Unite has been pushing the ETI organisation and the supermarkets to take action over wages, union rights and security of employment, that goes beyond the legal, minimum standards upheld by the GLA and meets their own, enhanced commitments.

Unite regional officer, Dave Weeks, said: "It is time for Asda, M&S and Sainsbury’s to take their ethical commitments seriously and help us ensure that Thanet Earth cleans up its act.

"We welcome the serious way in which the GLA has gone about its duties. We now wish to see the same seriousness from the Ethical Trading Initiative and the supermarkets that are signed up to it.

“These big High Street brands claim to uphold the rights of all workers in their supply chains. Yet Unite has complained that the majority of workers at Thanet Earth are still in insecure employment, and the agencies bypass legislation to avoid paying industry rates. The company has also gone to extraordinary lengths to prevent our organisers from speaking to workers. The GLA has even found evidence of illegal breaches of its code.”

Recently dismissed worker, Vanda Sefer, added: "In my third year of employment at Thanet Earth, and as a known union member, my work was stopped when I took paid holiday. I had no dismissal hearing and no right of appeal. This is how the agency scares people from taking holidays and from joining the union. The supermarkets should not let this happen to people."

ENDS

Contact Ciaran Naidoo on 07768 931 315 or Mick Duncan on 07900 405 757

Notes to editors:

The GLA concluded that the method of calculation of holiday pay and entitlement was neither transparent nor compliant with guidelines; no one they talked to knew their entitlement or how it was arrived at; and there was no clear statement of holiday pay included on wage slips.

It also conceded that due to the numbers of complaints that were made, Thanet Earth Marketing Ltd clearly knew there was a big problem and should have acted on it. The company has been instructed to improve on this.

The GLA also failed the agencies on a lack of grievance and disciplinary procedures. Unite has helped over 70 agency workers take grievances out, none of which have been acted on formally.


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