Vulnerable workers will be better protected from criminal gangmasters under plans to clamp down on unscrupulous operators, according to Agriculture Minister Jim Paice, who today announced the effects of the government's 'red tape challenge' on the Gangmaster's Licensing Authority.

The Gangmasters Licensing Authority (GLA), which was set-up in 2005 to protect temporary workers from exploitation in farming, shellfish gathering, and food processing, will refocus its efforts to stamp out abuses following the death of migrant workers at Morecambe Bay. During the 'red tape challenge,' politicians expressed distaste at Defra proposals to alter the GLA's remit as they felt this would result in a reduction in protection for vulnerable workers.

Defra said that, by freeing-up resources for inspectors to take action where it is needed most, the GLA will clamp down on high-risk labour providers who commit serious crime. It will also work more effectively with other agencies to track and address cases of human trafficking.

However, under the reforms, the GLA will remove regulatory burdens and costs for employers it deems to be "responsible," meaning these are subject to less scrutiny. Furthermore workers in sectors said to be "low risk" will no longer benefit from the protection of the GLA. "Low risk" sectors, which will no longer be subject to regulation, contain "far fewer vulnerable workers or evidence of any criminal gangmaster operations," according to Defra officials, who made the changes despite the GLA's original function as a watchdog operating to ensure such abuses did not occur as well as intervening where they do.

News that the agency's remit and funding will be cut comes despite calls for increased resources to provide better protection for workers from criminal gangmasters and employers who knowlingly allow them to operate and praise for the body as an effective means of enforcing and raising working standards. Recent reports into exploitation have all called for an expansion of the GLA's powers.

Mr Paice said, “This Government is committed to protecting vulnerable workers which is why we’ll be using a much more targeted approach to clamp down on the high-risk, criminal labour providers and users where action is most needed.

“Responsible employers who play by the rules will be freed from unnecessary costs and bureaucracy, allowing them to get on with the important job of running their business, while safeguarding the rights of their workers.”

Under the changes, Defra said the GLA will:

• Focus far more on gross abuse of workers by unscrupulous gangmasters committing multiple offences  such as tax evasion, human trafficking, health and safety negligence  and other serious crimes;
• Work in a  more joined-up way  with a range of specialist law enforcement agencies using  an intelligence-led approach to better target and pursue suspected serious and organised crime;
• Make sure the evidence it collects is used in wider prosecutions of organised crime groups and assist in the earlier identification of the victims of human trafficking;
• Streamline the licence application process, including no longer automatically making compulsory inspections of businesses when they first apply;
• Look to reduce licence fees and extend the licensing period from twelve months to two years or more for highly compliant businesses;
• No longer regulate proven low-risk sectors, such as apprenticeships, forestry, specialist cleaning contract companies, land agents and voluntary workers;
• Allow shellfish “farm” businesses with exclusive rights to use the seashore for shellfish cultivation to use their workers to grade and gather shellfish stock without needing to be licensed as a gangmaster. This is because these permanent businesses do not use gangmasters to supply workers, and instead employ staff under strict regulations from specific permits.  This measure would leave activities such as the gathering of cockles from public shellfish beds, where gangmasters operate, fully within the GLA’s remit;
• Substitute administrative fines and penalties for low-level and technical minor offences, including a measure similar to a Repayment Order to achieve rapid reimbursement to an exploited worker of wages or other payment which has been removed;
• Explore the use of alternatives to prosecution when taking enforcement action against a labour user who uses an unlicensed gangmaster;
• Amend the structure of GLA Board and make it smaller to provide clear, strategic leadership and direction to the GLA so that it can be more effective.

Welcoming the changes, GLA chair Margaret McKinlay said, “GLA plays a vital role in protecting the interests of vulnerable workers. We welcome these changes which will really help us focus our efforts on the areas of high risk activity that will make a difference, while reducing the burdens for compliant businesses.

“We’ve already been looking to apply a light touch approach to licensing the businesses we regulate and have started to focus our efforts on areas where exploitation of workers may be more of a problem.”

The changes to the operation are following the Government’s Red Tape Challenge. Defra said it will now work up detailed proposals and consult on them within the next year, taking into account the outstanding Department for Business Innovation and Skills’ review of Workplace Compliance and Enforcement Rights.

In 2010, the GLA's largest operation saw 70 dairy farmers embroiled in scandal, including some of the UK's most prominent farmers; 20 were sucessfully prosecuted. Therereafter the Government instructed the GLA to “minimise disruption” to UK farming businesses in future.

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