6000 temporary workers will have working week slashed for same money – if they become permanent staff
Ray O’Rourke has responded to the fiercely competitive labour market by offering dramatically improved pay and conditions to more than 6000 workers on weekly contracts.
Under the plan the workers, who now work more than 60 hours a week, will be become permanent members of staff, will work no more than 48 hours a week, but will not lose any money.
Laing O’Rourke’s move will send shock waves through the industry because it will force other contractors to do likewise or risk losing staff to their rapidly expanding rival.
O’Rourke has taken the decision after experimenting with the 48-hour working week at the Heathrow Terminal 5 project.
A company source said that the contractor has notified the unions of its intentions. The source said O’Rourke saw it as a way of tackling the long-term problem of skills shortages and staff retention.
He added that research carried out by the firm had found that operatives who became full-time employees did more work.
The source said: “Despite the cost of paying the operatives the same money for working fewer hours, they are generally happier, safer and more productive.”
This will shake the industry as competition for skilled staff is so fierce
Laing O'Rourke source
The source added that it was a demonstration of O’Rourke’s determination to recruit and retain the labour required to complete contracts.
The source said: “Other contractors may be forced to follow suit. Ray’s aim is to have staff on tap and to have stable industrial relations. This move will really shake the industry as competition for skilled workers has never been so fierce.”
A task group led by Patrick Boyle, Laing O’Rourke group human resources and operations director, intends to put some plans into action over the coming weeks.
Laing O’Rourke refused to comment officially, but George Brumwell, UCATT general secretary, said: “Whatever is happening with O’Rourke it is of benefit to the industry and the workforce.”
Workers have been told that by becoming permanent members of staff they will be eligible for other company benefits and have greater employment rights.
However, it is understood that there is resistance by some workers who prefer to remain flexible and also work for other companies.
It is also understood that Laing O’Rourke intends to harmonise the pay of workers across its subsidiaries.
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