Commenting on the Government's announcement today to kick-start the housing market and assist house builders, construction union UCATT have called on the Government to demand that house builders directly employ staff and train apprentices, in return for the assistance they are receiving.

UCATT is in possession of letters from Persimmon and Taylor Wimpey, Britain's two largest house-building companies, stating that they do not intend to directly employ any construction workers in the future.

Rather than employ staff directly major house builders appear to be increasingly determined to use falsely self-employed workers and/or operate through sub-contractors.

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By using false self-employment, through the construction industry scheme (CIS), companies do not pay national insurance contributions; avoid paying holiday pay, sick pay and pensions benefits. Workers do not have any employment rights so they can be sacked at a moments notice.

Alan Ritchie, General Secretary of UCATT, said: "Sadly our initial fears about the house builders are coming true. It is apparent that they are using the credit crunch as an excuse to sack workers and then hire new staff on a false self-employed basis. They are sitting on huge land banks and once the market recovers they will use a further casualised workforce to boost their profits. The Government, which is shoring up the industry, should use its influence to block this approach."

However, UCATT welcomed proposals to ensure that existing construction apprentices will be given assistance with finding a new employer if they are laid off by a house building company but believe that further measures are needed.

(CD)