These labourers provide a cheap supply of ready manpower. Photograph: Getty Images
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Cheap, and far from free: The migrant army building Britain

Revealed: how job restrictions have left Romanian and Bulgarian construction workers underpaid and vulnerable to exploitation.

The men gather in the shadow of the Wickes hardware store, looking out for the odd jobs that keep them in the UK and for the police that periodically moves them along.
As day labourers on the margins of Britain’s sprawling construction sector, they provide a cheap supply of ready manpower, useful yet often unwelcome.

Their presence provokes frequent complaints from the residents of Seven Sisters, a north London neighbourhood where the cafés offer a greasy “builder’s breakfast” for less than five pounds.

With no offices or agencies supporting them, the day labourers crowd the pavement and advertise their trade through their attire – grubby tracksuits spattered with paint and plaster.

When potential clients pull up, they haggle over rates and hitch rides. When the police show up, they run.

Across the road on a sunny July morning, Jarek collects his groceries and stops for a chat with some friends.

“Illegal people,” is how he describes the 30 or so men waiting outside Wickes. Like them, Jarek is an immigrant. Unlike them, he comes from Poland and does not panic when he sees the police.

He too is a builder, but he does not do business on the pavement outside Wickes. Instead, he travels on a moped fitted with a toolbox, dispensing glossy flyers advertising “cheap and reliable contractor services” in ungrammatical English.

Jarek is one of around a million workers who moved to the UK as a result of the EU’s expansion into Eastern Europe in 2004. The scale of the migration, most of it from Poland, prompted a backlash against the British politicians who had failed to anticipate it.

The day labourers are mostly Romanians and Bulgarians, and relative newcomers to the UK. They arrived after 2007, when Romania and Bulgaria – the so-called A2 countries – joined the EU.

Despite Jarek’s suspicions, the men’s presence in Britain, or indeed outside Wickes, is not in itself illegal.    

All that separates him from the newcomers is a web of restrictions, designed to deny A2 migrants the many advantages that helped Jarek and his compatriots establish themselves in the UK.

Free to stay but not free to work, the Romanians and Bulgarians fulfil a narrow function – meeting Britain’s need for underpaid and unprotected labour.

Nervous and suspicious

The construction sector accounts for more than 10 per cent of Britain’s GDP. It is the centrepiece of the government’s plan to revive the struggling economy, and the recipient of regular subsidies and stimuli.

Critics say the government’s restrictions on A2 workers have benefitted the construction sector by boosting the ranks of poorly paid and loosely regulated labourers. They accuse Britain of trying to build its way out of a double-dip recession by undercutting pay and conditions for other, relatively well-established, workers.

A Balkan Investigative Reporting Network (BIRN) investigation shows that A2 workers are generally prepared to work for lower wages and in worse conditions than others in the construction industry. Many interviewees spoke on condition of anonymity because they did not wish to attract the attention of the authorities.

Unions and safety officials agree that the A2 workers’ immigration status has driven them into the highly casual end of the building trade, where procedures are more likely to be ignored and injuries and grievances are less likely to be reported.

The UK government justifies its restrictions, arguing that they have protected the British workforce by preventing another surge of immigration of the scale that brought Jarek to the country.

Statistics from the Department of Work and Pensions show that around 210,000 Romanians and Bulgarians have received a National Insurance (NI) number since their countries joined the EU five years ago. This figure offers a very rough indication of how many migrants from these countries may be working in Britain, without taking into account those working illegally and those who have since returned home.

By comparison, some 640,000 Poles have received NI numbers over the last five years, from the total of more than a million over the last decade.

Large construction guilds, meanwhile, insist that their members are bound by law to ensure working conditions are safe and fair. When the rules are broken, they say, the migrants are often complicit.

Some migrants interviewed by BIRN seemed to confirm this, saying they worked in the grey economy to avoid taxes. But as many are underpaid, the incentive for doing so is also greater.

If caught working illegally, the migrants face a fine of up to £1,000 pounds (about €1,300) and a possible prison term.

However, the day labourers in front of Wickes are in little danger of being busted, as they can always claim that they intend to declare any earnings.

Their nervousness around the police stems less from a genuine fear of prosecution than from a general suspicion of the state.

Facing severe restrictions in the job market, they have been funnelled towards a zone where there is no clear distinction between the lawful and unlawful, or between the exploitative and the cost-effective.

“The police have asked me for ID… Sometimes they say you can stay, sometimes they make you leave,’’ says a middle-aged day labourer from Bulgaria who gave his name as Neven. “I stay,’’ he adds. “What are the police going to do to me?’’


Numbers game

Upon arrival in the UK, all foreigners in search of work are expected to apply for an NI number.

The number is a prerequisite for anyone seeking legitimate long-term employment. It is effectively the code upon which the state builds each individual’s record of taxes, pensions and benefits.

When Jarek came to Britain in 2004, Poles like him had little difficulty acquiring an NI number. But by the time Neven migrated five years later, Romanians and Bulgarians were finding it harder to register.

A2 nationals are automatically allocated NI numbers only if they have travelled to Britain on a type of work permit that is issued with direct offers of employment.

However, these migrants are in a minority. Most Romanians and Bulgarians travel to the UK without work permits or any firm promise of employment.

Eager to start earning, they gravitate towards the construction and hospitality sectors, where they can eventually skirt the need for a work permit by registering as self-employed.

Migrants who fail to prove they are self-employed, and therefore fail to get an NI number, often end up on the margins of these sectors, getting paid cash-in-hand for casual jobs that require minimal paperwork.

Bulgarian and Romanian embassy officials in London told BIRN that their citizens were finding it harder to get an NI number, in some cases logging five unsuccessful attempts. Many of the day labourers outside the Wickes at Seven Sisters fit this category.

“No money, no job in Bulgaria,” said a 45-year-old migrant who did not give his name. He said he had twice applied for an NI number, and had been refused both times. He had not found work for two months and was living off his savings.

"Smaller sites, bigger risks"

Undocumented workers are more likely to be seriously injured on the job, according to trade unions and safety experts.

A young Romanian man, whose name has been withheld on the advice of his lawyer, told BIRN he had been electrocuted while operating a jackhammer at a site in London. “I don’t remember much,” he said. “There was smoke. My arm was burned.”

The man had been working in Britain without an NI number and had learned about the job from a friend. He says he was not asked to provide any documents or sign any contracts before starting work, and was paid cash-in-hand. Although he received some basic safety instructions, he says he had trouble following them because of his poor English.

Construction unions estimate that some 80 per cent of workplace accidents go unreported. The Health and Safety Executive (HSE), the UK watchdog that monitors safety in the workplace, does not keep any data recording the nationality of injured workers.

However, it acknowledges that migrant workers are more exposed to accidents and less likely to report them, even though they cannot be deported or penalised for doing so.

Richard Boland, the HSE’s head of operations for construction in southern England, says “the vulnerability that comes with having restrictions on when and where you can work” can drive builders to sites where the safety rules are not enforced.

HSE’s inspectors are now shifting their focus away from the large firms towards smaller sites because the latter, he says, are more likely to ignore standards and to employ relatively inexperienced migrant workers.

"Silent accidents"

Romanian and Bulgarian workers who manage to acquire an NI number still face curbs that did not trouble an earlier generation of immigrants from the EU.

Most jobs in construction are arranged through specialist employment agencies, which are typically small companies with a record for hiring from within a particular immigrant community.

These agencies act as subcontractors for bigger firms, delivering casual labour to large sites at short notice and handling much of the associated paperwork.

According to lawyers and labour experts, the A2 workers hired by such agencies are less likely to complain of dangerous conditions and low wages. Many fear being blacklisted in an economy where their options for employment are already circumscribed.

Remus Robu, a paralegal with UK law firm Levenes, often handles claims arising from accidents involving A2 workers. “Unfortunately, there are people who do lose their job when they file for compensation,” he said.

The Romanian owner of a small building company, speaking on condition of anonymity, confirmed the existence of an informal blacklist for workers who were regarded as troublesome. But, he said, this was no different to the system of references shared by employers in other industries.

“Would you hire back somebody who had filed a claim against you?’’ he said.

The owner also told BIRN that he had persuaded a worker against reporting an accident that had led to a broken leg. He said he had paid the injured man a full wage throughout his time in recovery, and guaranteed him further employment when he was fit again.

“He agreed not to pursue a claim against me because I have a good relationship with my workers,” the owner said.

According to the HSE, any accident that leads to a broken leg has to be reported under UK law. If an employer is found to be at fault, lawyers say a worker can expect to receive between £6,000 and £36,000, depending on the severity of the injury.

Small construction firms are usually keen to avoid having claims brought against them, as these can hamper their ability to secure fresh contracts.

"Informal economy"

As well as discouraging complaints over conditions, employment agencies often pay A2 migrants a lower wage than other workers.

Many agencies deduct a form of commission from workers’ pay packets. In some cases, a payroll company – often linked to the agency – will charge an additional “admin” fee for processing salaries.

The A2 migrants have no safeguards against these cuts to their earnings. As self-employed workers, they are not eligible for the UK’s minimum wage, currently set at just over six pounds an hour.

Moreover, although technically expected to pay their own taxes, self-employed labourers are automatically taxed at source at a rate of 20 per cent, under a government scheme that applies to the construction sector alone.

The construction workers’ union, UCATT, has called for the scheme to be scrapped, saying it facilitates a form of bogus self-employment. Britain’s opposition Labour party also recently said it would review the scheme.

However, an official from the UK’s largest construction trade association said the workers in this category deserved no more sympathy than their employers for undermining their “legitimate competitors”.

“Both parties gain from effectively breaking the law and, as such, those A2s who collude in false self-employment cannot be portrayed as innocent victims,” says Peter O’ Connell, a policy manager with the Federation of Master Builders.

Stephen Ratcliffe, director of the UK Contractors Groups, a guild representing the country’s top construction firms, said criminal proceedings should be used against the “informal economy” where companies flout tax, employment and safety laws.

Both O’Connell and Ratcliffe stressed that the members of their organisations abide fully by the law.

The UK’s main trade body for employment agencies, the Recruitment and Employment Confederation, declined to comment despite several requests from BIRN.

Given the ways in which working through employment agencies can eat into their earnings, many A2 workers decide to opt out of the system.

The day labourers outside the Wickes superstore in Seven Sisters include some who have an NI number but choose not to use it.

A Romanian man, who refused to give his name, says he has been in the UK for six years and regularly pays his taxes and contributions to the state.

But he supplements his official income by working cash-in-hand. “People hire me to paint their house. If they ask for an invoice, I can issue one. Otherwise, I don’t.”

“I’m done working with the agencies,” he adds. “They take too much of your money.”

Most of the men outside Wickes said they expected to earn around £50 (€60) a day. By comparison, a self-employed Romanian recruited legally through an employment agency for marshalling traffic at a building site, can expect to earn £80 (€100) per day. In other words, he will be paid only £30 (€40) more than the day labourers, out of which he must fund further tax and NI contributions.

Recruitment agencies say they pay the same wage, regardless of nationality. However, unions say that British and Polish workers can expect to be paid £9-10 per hour for jobs that will be offered to A2 workers for £5-6 per hour.

As they do not face any working restrictions, Polish and British workers are in a better position to negotiate their rates or simply take better jobs in other sectors. Romanians and Bulgarians are more likely to go with what they are offered, as they have fewer options on the job market.

"Good for business"

According to its critics, the current policy on A2 workers has created a system that deprives the state of tax revenues, undercuts British labour and leaves foreigners open to exploitation.

Labour MP Jim Sheridan has argued for tighter regulation of the employment agencies in the construction sector, along the lines of the licensing of agricultural gangmasters.

Others call for reducing self-employment in the sector by making construction firms hire more workers directly. However, this would also shift the burden for NI contributions – nearly 14 per cent of the wage bill – on to the employers.

UCATT convenor Dave Allen admits this is unlikely to happen, as it would leave the big firms with smaller budgets. “The government knows that if everybody was directly employed, the economy might suffer,” he says.

Bridget Anderson, deputy director and senior research fellow at Oxford University’s migration think-tank COMPAS, says the government should, at the very least, enforce the minimum wage regulations on all workers, British and foreign, self-employed or not.

She says the rhetoric about protecting British jobs was misleading: the curbs had undermined the established workforce while benefitting businesses by giving them a more pliant workforce.

“The more you focus on immigration control, the more you introduce transitional arrangements – the more you create a labour force that is actually more desirable for employers,” she said.

EU members cannot prevent the citizens of other member states from travelling to their countries for work. They can only impose “transitional controls” of the kind currently in place in the UK against Romanians and Bulgarians.

The UK is just one of several EU states that have imposed restrictions on A2 workers. Similar restrictions exist in Austria, Germany, Belgium, France and the Netherlands.

By law, the curbs must be lifted by January 2014. However, a statement issued by the UK Border Agency last year confirmed it would apply similar “transitional restrictions” on all new EU member states to ensure that “migration benefits the UK and does not adversely impact our labour market’’.

The UK’s Border Agency, the immigration minister, and the Department for Work and Pensions all declined to be interviewed for this article.

Sorana Stanescu is a Bucharest-based journalist. This article was edited by Neil Arun. It was produced as part of the Balkan Fellowship for Journalistic Excellence, an initiative of the Robert Bosch Stiftung and ERSTE Foundation, in cooperation with the Balkan Investigative Reporting Network. All photographs from Getty Images.

Sorana Stanescu is a Bucharest-based journalist.

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Geoffrey Howe dies, aged 88

Howe was Margaret Thatcher's longest serving Cabinet minister – and the man credited with precipitating her downfall.

The former Conservative chancellor Lord Howe, a key figure in the Thatcher government, has died of a suspected heart attack, his family has said. He was 88.

Geoffrey Howe was the longest-serving member of Margaret Thatcher's Cabinet, playing a key role in both her government and her downfall. Born in Port Talbot in 1926, he began his career as a lawyer, and was first elected to parliament in 1964, but lost his seat just 18 months later.

Returning as MP for Reigate in the Conservative election victory of 1970, he served in the government of Edward Heath, first as Solicitor General for England & Wales, then as a Minister of State for Trade. When Margaret Thatcher became opposition leader in 1975, she named Howe as her shadow chancellor.

He retained this brief when the party returned to government in 1979. In the controversial budget of 1981, he outlined a radical monetarist programme, abandoning then-mainstream economic thinking by attempting to rapidly tackle the deficit at a time of recession and unemployment. Following the 1983 election, he was appointed as foreign secretary, in which post he negotiated the return of Hong Kong to China.

In 1989, Thatcher demoted Howe to the position of leader of the house and deputy prime minister. And on 1 November 1990, following disagreements over Britain's relationship with Europe, he resigned from the Cabinet altogether. 

Twelve days later, in a powerful speech explaining his resignation, he attacked the prime minister's attitude to Brussels, and called on his former colleagues to "consider their own response to the tragic conflict of loyalties with which I have myself wrestled for perhaps too long".

Labour Chancellor Denis Healey once described an attack from Howe as "like being savaged by a dead sheep" - but his resignation speech is widely credited for triggering the process that led to Thatcher's downfall. Nine days later, her premiership was over.

Howe retired from the Commons in 1992, and was made a life peer as Baron Howe of Aberavon. He later said that his resignation speech "was not intended as a challenge, it was intended as a way of summarising the importance of Europe". 

Nonetheless, he added: "I am sure that, without [Thatcher's] resignation, we would not have won the 1992 election... If there had been a Labour government from 1992 onwards, New Labour would never have been born."

Jonn Elledge is the editor of the New Statesman's sister site CityMetric. He is on Twitter, far too much, as @JonnElledge.

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What Jeremy Corbyn can learn from Orwell

Corbyn’s ideas may echo George Orwell’s – but they’d need Orwell’s Britain to work. It’s time Corbyn accepted the British as they are today.

All Labour Party leaderships since 1900 have offered themselves as “new”, but Tony Blair’s succession in 1994 triggered a break with the past so ruthless that the Labour leadership virtually declared war on the party. Now it is party members’ turn and they, for now at any rate, think that real Labour is Jeremy.

To Keir Hardie, real Labour had been a trade union lobby expounding Fellowship. To the Webbs, real Labour was “common ownership” by the best means available. Sidney’s Clause Four (adopted 1918) left open what that might be. In the 1920s, the Christian Socialist R H Tawney stitched Equality into the banner, but during the Depression young intellectuals such as Evan Durbin and Hugh Gaitskell designated Planning as Labour’s modern mission. After the Second World War, Clement Attlee followed the miners (and the London Passenger Transport Board) into Nationalisation. Harold Wilson tried to inject Science and Technology into the mix but everything after that was an attempt to move Labour away from state-regulated markets and in the direction of market-regulated states.

What made the recent leadership contest so alarming was how broken was the intellectual tradition. None of the candidates made anything of a long history of thinking about the relationship between socialism and what the people want. Yvette Cooper wanted to go over the numbers; only they were the wrong numbers. Andy Burnham twisted and turned. Liz Kendall based her bid on two words: “Have me.” Only Jeremy Corbyn seemed to have any kind of Labour narrative to tell and, of course, ever the ­rebel, he was not responsible for any of it. His conference address in Brighton was little more than the notes of a street-corner campaigner to a small crowd.

Given the paucity of thinking, and this being an English party for now, it is only a matter of time before George Orwell is brought in to see how Jeremy measures up. In fact, it’s happened already. Rafael Behr in the Guardian and Nick Cohen in the Spectator both see him as the kind of hard-left intellectual Orwell dreaded, while Charles Cooke in the National Review and Jason Cowley in the New Statesman joined unlikely fashion forces to take a side-look at Jeremy’s dreadful dress sense – to Orwell, a sure sign of a socialist. Cooke thought he looked like a “burned-out geography teacher at a third-rate comprehensive”. Cowley thought he looked like a red-brick university sociology lecturer circa 1978. Fair enough. He does. But there is more. Being a middle-class teetotal vegetarian bicycling socialistic feministic atheistic metropolitan anti-racist republican nice guy, with allotment and “squashily pacifist” leanings to match, clearly puts him in the land of the cranks as described by Orwell in The Road to Wigan Pier (1937) – one of “that dreary tribe of high-minded women and sandal-wearers and bearded fruit-juice drinkers who come flocking towards the smell of ‘progress’ like bluebottles to a dead cat”. And though Corbyn, as “a fully fledged, fully bearded, unabashed socialist” (Huffington Post), might make all true Orwellians twitch, he really made their day when he refused to sing the National Anthem. Orwell cited precisely that (see “The Lion and the Unicorn”, 1941) as an example of the distance between left-wing intellectuals and the people. It seemed that, by standing there, mouth shut, Comrade Corbyn didn’t just cut his wrists, he lay down full length in the coffin and pulled the lid shut.


Trouble is, this line of attack not only misrepresents the Labour leader, it misrepresents Orwell. For the great man was not as unflinchingly straight and true as some people think. It is impossible, for instance, to think of Orwell singing “God Save the King”, because he, too, was one of that “dreary tribe” of London lefties, and even when he joined Labour he remained ever the rebel. As for Corbyn, for a start, he is not badly dressed. He just doesn’t look like Chuka or Tristram. He may look like a threadbare schoolteacher, but Orwell was one twice over. Orwell was never a vegetarian or a teetotaller, but, like Corbyn, neither was he interested in fancy food (or drink), he kept an allotment, drove a motorbike, bicycled, cared about the poor, cared about the environment, loathed the empire, came close to pacifism at one point, and opposed war with Germany well past the time when it was reasonable to do so.

In Orwell’s thinking about socialism, for too long his main reference point was the London Marxist left. Not only did he make speeches in favour of revolutions, he took part in one with a gun in his hand. Orwell was far more interested, as Corbyn has been far more interested, in speaking truth to power than in holding office. His loyalty was to the movement, or at least the idea of the movement, not to MPs or the front bench, which he rarely mentioned. There is nothing in Corbyn’s position that would have shocked Orwell and, should they have met, there’d have been much to talk about: belief in public ownership and non-economic values, confidence in the state’s ability to make life better, progressive taxation, national health, state education, social care, anti-socially useless banking, anti-colonialism and a whole lot of other anti-isms besides. It’s hard to be sure what Orwell’s position would have been on Trident and immigration. Not Corbyn’s, I suspect. He was not as alert to feminism as he might have been but equally, few men try to write novels from a woman’s point of view and all Orwellians recognise that Julia is the dark hero of Nineteen Eighty-Four. In truth they are both austere types, not in it for themselves and not on anyone else’s expense account either. Corbyn won the leadership because this shone through from the very beginning. He came across as unaffected and straightforward – much as Orwell tried to be in his writing.

Except, as powerfully expressed in these pages by John Gray, Corbyn’s politics were made for another world. What sort of world would he need? First off, he’d need a regulated labour market: regulated by the state in partnership with a labour movement sensitive to what people wanted and experienced in trying to provide it. He would also need capital controls, a manufacturing base capable of building the new investment with Keynesian payback, an efficient and motivated Inland Revenue, a widespread public-service ethos that sees the country as an asset, not a market, and an overwhelming democratic mandate to get things done. In other words, Corbyn needs Orwell’s Britain – not this one – and at the very least, if he can’t have that, he needs the freedom to act that the European Commission forbids.

There’s another problem. Orwell did not trust left-wing intellectuals and spent half his life trying to work out their motivations as a class who spoke for the people, went in search of the people, and praised the people, but did not know them or believe in them. True, Corbyn says he wants to be open and inclusive, but we know he can’t possibly mean it when he says it will be the party, not him or the PLP, that will decide policy, just as we knew it couldn’t possibly be true when he said he’d turn PMQs into the People’s Question Time. Jeremy hasn’t changed his mind in forty years, appears to have great difficulty (unlike Tony Benn) in fusing socialism to national identity or experience (Hardie, Ben Okri and Maya Angelou were bolted on to his Brighton speech) and seems to think that not being happy with what you are given somehow captures the historic essence of socialism (rather than its opposite).

Granted, not thinking outside the ­circle is an inherent fault of the sectarian left but some of our most prominent left-wing journalists have it, too. Working-class support for nationalisation? Good. Right answer! Working-class opposition to benefit scroungers and further mass immigration? Bad. Wrong answer! Would you like to try again? In his essay “In Defence of Comrade Zilliacus” (1947) Orwell reckoned that left-wing intellectuals saw only what they wanted to see. For all their talk of representing the people, they hated the masses. “What they are frightened of is the prevailing opinion within their own group . . . there is always an orthodoxy, a parrot-cry . . .”

The game is hard and he may go down in a welter of knives, yet Corbyn still has time. He may go on making the same speech – on the benefits of apple pie to apple growers – but at some point he will have to drop the wish-list and get on the side of the British people as they are, and live with that, and build into it. Only the nation state can even begin to do the things he wants to do. The quicker he gets that, the quicker we can see if the latest incarnation of new Labour has a future.

Robert Colls is the author of “George Orwell: English Rebel” (Oxford University Press)

This article first appeared in the 08 October 2015 issue of the New Statesman, Putin vs Isis