Construction union UCATT have reacted with anger and dismay to a speech by Business Secretary John Hutton where he apparently ruled out further employment rights legislation as it could compromise 'labour market flexibility' and that the Government should only take responsibility for 'minimum standards' in the workplace.

Alan Ritchie, General Secretary of UCATT, said: "John Hutton's speech is the work of someone who has completely lost touch with reality. His words are highly offensive to millions of workers who are struggling to support themselves and their families. It is exactly this kind of subservience to business, which is causing Labour to haemorrhage grassroots support."

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In construction, the most casualised industry in Britain, in excess of 500,000 workers face exploitation every day. Over 400,000 workers are bogusly self-employed under the Construction Industry Tax Scheme. The workers can be fired at a moments notice, do not receive standard benefits such as holiday pay and sick pay and are at greater danger of being killed or injured at work.

Construction companies who use falsely self-employed workers are given a tax subsidy by the Government, they do not have to pay employers national insurance contributions, which is worth in excess of £2,500 per worker, per annum. These companies also fail to train apprentices, creating severe skills shortages and will be able to avoid paying contributions towards the proposed statutory state second pension, as the workers are officially self-employed.

(CD/JM)