HVCA launches employment agency alliance

The HVCA has introduced a new platform to help contractors select competent employment agencies that adhere to industry standards.

The Building Services Engineering Employment Agency Alliance represents a grouping of agencies deemed capable of supplying quality personnel.

To become a member, an agency must demonstrate compliance with the Alliance’s Key Commitments. These examine commercial footing, commitment to the sector and whether or not the organisation is adequately regulated.

A third party assessor will decide whether or not the agency is in compliance. Those which are lacking will be allotted a short period of time to improve their standards.

Agencies must then submit to a business audit carried out by BM TRADA Certification every three years, along with an annual compliance inspection in each intervening year.

Former MP and Labour peer Lord O’Neill is independent chairman of the Alliance.

“It is logical that the industry’s focus should have turned away from the wholesale discouragement of employment agency activity and towards differentiating between their relative merits,” he said.

Stephen Quant, director of human resources at Skanska Rashleigh Weatherfoil, said: “In the past, we’ve found people who are not bona fide, don’t abide by government regulations, don’t offer holiday pay. Then the problem comes back to us as a direct grievance – it affects our brand.

“Managing the supply chain is the most significant thing we can do, and part of that is agency labour. We want everyone to be treated decently and everyone to be competent, he added.”

Eugene Semenuik, director of employment agency Oracle Global Resourcing described the initiative as an opportunity and a challenge for agencies:

“We’ve reached a milestone in bringing these three lobbies – the HVCA, contractors and agencies – together,” he said.

“For far too long, agency labour has been viewed as a necessary evil; poachers of staff who bring nothing to the table. The alliance gives us this platform to change those misconceptions. We can work together towards adding value.”

Semenuik was also confident that the electrical sector would soon follow suit: “I’m certain that the ECA will be watching our progress and will one day see the advantages to joining the Alliance, or creating one of their own,” he said.

Peter Rimmer, head of HVCA employment affairs, affirmed that the door is still open if the ECA wishes to join. “We’ve been in dialogue with the ECA and they have made a significant contribution,” he added.

Alex Meikle, head of employee relations at the ECA, said that the ECA has recognised for some time that there is a need to influence the growing market for agency supplied labour, and understands the HVCA’s intention to promote dialogue with the agencies through the Alliance.

He stressed, however, that while the ECA is supportive of the general principle, it is also conscious that there is a great deal of uncertainty regarding the employment status of skilled tradesmen and other operatives supplied by agencies.

“We are concerned that many of these tradesmen are declaring themselves incorrectly to be self-employed CIS businesses or personal service companies,” he said.

“There are serious dangers to those individuals and to end user companies of incurring substantial debts for unpaid tax and National Insurance contributions if it is subsequently determined by HMRC that they are not truly self employed.”

For the moment, ECA intends to keep any formal relationship with the agencies under review until these tax and National Insurance implications become clearer.

Unite-Amicus national officer Tom Hardacre said that the Alliance does not have the backing of the union. “Amicus is very concerned about this development, and we’ll be looking to seek assurances from the employers’ association,” he said.

“The introduction of an agency alliance could conflict with the provisions of the National Agreement which deal with direct employment.”