{"id":4652,"date":"2018-06-18T06:07:04","date_gmt":"2018-06-18T06:07:04","guid":{"rendered":"http:\/\/imjussayin.com\/blog\/?p=4652"},"modified":"2018-06-19T13:57:15","modified_gmt":"2018-06-19T13:57:15","slug":"employment-boom-tory-mirage-miracle","status":"publish","type":"post","link":"https:\/\/imjussayin.com\/blog\/employment-boom-tory-mirage-miracle\/","title":{"rendered":"Employment Boom Tory Miracle or Mirage?"},"content":{"rendered":"

\"employment<\/a><\/p>\n

Theresa May often brags that the employment rate is at an all-time high. \u00a0But as those who tune into my broadcasts would know, \u2018I got issues.\u2019 How can there be such high employment and yet working people are homeless<\/a> and using food banks<\/a>. The Tory\u2019s don\u2019t address the juxtaposition turning a blind eye to economic reality. That is because Tory policy promotes deregulation of the labour market. Irrespective of the breaches of workers\u2019 rights or tax abuse.<\/p>\n

Wage Theft<\/span><\/h2>\n

The Low Pay Commission<\/a> estimates employers pay 1 in four workers less than the \u00a37. 83p minimum wage for 25+. Employers include brands like Argos<\/a>, Marriott Hotel<\/a>, and Wagamama<\/a>.<\/p>\n

And employers also steal from workers<\/a> by making significant deductions for accommodation and uniforms. And taking the holiday pay due to around 5% of entitled employees.<\/p>\n

Gig Economy<\/span><\/h2>\n

Nationally the idea of self-employment has pervaded our senses. And the ‘gig economy’ is made to sound incredibly sexy but like the zero hour contract, it is anything but. Employers deliberately classify workers as self-employed. It denies workers minimum wage; holiday and sick entitlements; parental rights; pensions and employment protection.<\/p>\n

Self-Employment<\/span><\/h2>\n

Employers and savvy individuals arrange \u2018off the payroll contracts\u2019. \u00a0 So, they are not genuinely self-employed but it means that they pay less tax and National Insurance. They save more than \u00a34 billion a year<\/a>. And so, incorporation is viral. For approximately every 16 people in the UK, there is a company. Back in 2000, that figure was one company for every 37 people.<\/p>\n

Abuse of self-employment is a widespread problem. Pimlico Plumbers provide regular well-paid work for their self-employed plumbers unlike in the gig economy. \u00a0 But when \u2018self-employed\u2019 Gary Smith who worked solely for Pimlico Plumbers for six years suffered a heart attack, Pimlico Pumbers dismissed him. And the courts rightly ruled that he should have the same rights<\/a> as an employee.<\/p>\n

But litigation is lengthy and expensive. Notably, the government has cut Legal Aid. So, few workers can make a legal challenge.<\/p>\n

Employment Abuse<\/span><\/h2>\n

Cheating businesses put those playing by the rules at a competitive disadvantage. And the Treasury is losing more than \u00a34 billion a year<\/a>. That is money the government could use for public services like the NHS instead it goes to private profit.<\/p>\n

But employers know that workers and HMRC<\/a> are unlikey to challenge their infractions in court. And\u00a0HMRC\u00a0impose such negligible fines that employers factor them into running costs.<\/p>\n

Citizens mutual obligations build Britain’s welfare; tax paid, public services met. Employer techniques including the sham use of self-employment are undermining it. Charlie Mullins of Pimlico Plumbers thinks that’s okay (video below). I don\u2019t.<\/p>\n

Employment and Government<\/span><\/h2>\n

Theresa May\u2019s support for abuse of self-employed status<\/a> has materialised as merely a pledge to consult<\/a>.<\/p>\n

So, it is trade unions and workers who lead the fight against widespread infractions. Like in the case against Uber<\/a> that ruled drivers were employees. But Uber is down not out<\/a> as I explain on this link. And we should be disquieted about the proximity of business and politics<\/a>, e.g., Uber explained on this linked.<\/p>\n

It would be a simple matter for the Chancellor to end the abuses; increase fines for breach of employment law to punitive levels. HMRC’s website provides guidance on employment<\/a>. And it makes the bogus nature of self-employment easy to spot. It is clear that cases like Uber, Pimlico Plumbers, etc. fall foul of it. So, the onus should be put on companies to prove that workers are genuinely self-employed. And if they fail to do so, the employers should grant employee rights.<\/p>\n

The reforms will expose the\u00a0employment figures for the mirage and not miracle that they are. \u00a0Perhaps that is why HMRC who is responsible for enforcing tax law and minimum wage seem not to be doing so.<\/p>\n

But alas Tory\u2019s are the party of business!<\/p>\n

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