The government has finally launched a system to crackdown on the exploitation of workers in the fresh produce sector, although labour providers fear it could lead to a shortage of staff.
Defra has announced the introduction of a system which will mean anyone providing labour to the agriculture, food processing and packing sectors must be licensed.
Jim Knight, Defra minister, right, said: “Many gangmasters run safe and legitimate businesses, but it’s imperative that we do everything we can to weed out the rogues among them.”
While the news has been generally welcomed across the industry, Mark Boleat, chairman of the Association of Labour Providers said it could pose potential problems for the fresh produce industry.
“I’m not sure the sector at all understands the consequences of this decision. Basically it means anyone providing labour has to be a licensed gangmaster,” he said.
“This could lead to a number of big agencies choosing not to supply the food industry because they don’t want to be labeled as gangmasters.” Coupled with that will be the extra burden of regulation which could provide further reason for providers to move away from the sector.
“We do support the system, in fact we have backed it from the very beginning. It’s not perfect, there are still some anomalies, but there are fewer than there might have been,” Boleat told FPJ.
However, operators in the industry were unconcerned. Gavin Knight, director of Soham packer Turners PPL, said he does not think there will be a huge impact on labour provision.
However, he does believe the move could mean further increased costs. “Five years ago, we paid £5.05 an hour for gang labour, now we’re paying 50 per cent more, but we’re not being paid any more by our customers,” Knight said.
Gangmasters will be charged between £250 and £4,000 for each licence - depending on their turnover - in a system to be administered by the Gangmaster Licensing Authority (GLA), with licence applications being accepted from April 6 onwards.
Paul Whitehouse, chair of the GLA, pictured below, said: “We shall help bona-fide labour providers stay legal by driving out those who undercut them by exploiting workers.”
Anyone found to be operating without a valid licence will be fined up to £5,000 or imprisoned for up to 10 years.
Nigel Jenney, chief executive of the Fresh Produce Consortium, said while labour shortages were of concern to the sector, he does not think this alone would make the situation worse. “It’s a valid point, but there are many labour providers focused entirely on the fresh produce sector, and I can’t see them turning away.
“The licensing of gangmasters is great news for our industry, it gives us the chance to be seen to be responsible in the eyes of consumers.”
NFU Board of Horticulture chairman Richard Hirst agreed, adding: “Growers are ready to take their responsibility to ensure that labour used within their businesses is not exploited and the licensing of gangmasters is key to achieving that.”
The NFU called on the GLA to communicate effectively with labour providers, labour users and the rest of the supply chain to ensure they are aware the new system is operating.
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