An influx of people who are looking for work in the UK, and demands by employers for workers, are creating some potentially damaging practices, the organisation says.

CCLA Investment Management, the UK charity investment house, said it is leading a drive to protect migrant seasonal workers in the UK. 

The group fears that these workers are being hit by fees to agents as well as other middleman payments, creating risks of debt bondage.

CCLA has convened 10 investors with a total of more than £800 billion ($971.6 billion) in assets under management to sign a statement calling on retailers and firms in, and directly sourcing from, the UK agricultural supply chain, to take a number of steps. For example, it wants firms to implement the Employer Pays Principle so that no worker should pay for a job and that the employer should bear all recruitment costs. It also wants businesses to investigate existing workers and ensure a fair process to repay recruitment-related costs that may have been borne by the workers. 

The organisation is taking the stance at a time when the Russian invasion of Ukraine, the UK’s departure from the European Union and demands for labour are fuelling both an influx of workers into certain parts of the world, as well as demand for labour, it said in a statement this week.

According to figures CCLA cited from impactt, a consulting group specialising in ethical trade and human rights, fees paid by migrant seasonal workers in the UK were said to be £35 million in 2022 alone.

“Despite the UK government’s commitments to tackling modern slavery and the International Labour Organization stating that no recruitment fees or related costs should be charged to, or otherwise borne by, workers or jobseekers, workers often have to take out loans at high interest rates or sign over assets and property to pay these fees and costs,” CCLA said. “This leaves the workers open to a high risk of debt bondage, one of the key indicators of forced labour.”   

Hot political issue
The treatment of migrant labour is a hot domestic political issue, as well as in other jurisdictions. Sir Keir Starmer, leader of the Labour Party and official opposition, said a few weeks ago that the UK must wean itself from cheap labour. His critics in the Conservative Party and parts of the media said this clashes with his former support for the UK’s membership of the EU and its freedom of movement. UK prime minister Rishi Sunak has said that having "proper control of our borders" was one of the immediate benefits of Brexit and curbing illegal migration was the "country's number one priority right now." Tony Danker, director-general of the Confederation of British Industry, has said that the UK needs more foreign workers to drive economic growth. 

Treatment of migrant labourers, such as in the Middle East and in the run-up to the Qatar World Cup, has been a sensitive issue, amid reports of the deaths of construction workers.

Alleged deception
CCLA said that some migrant workers in the UK have been deceived by promises of multi-year contracts, but due to the late release of 8,000 visas, they have found themselves with only weeks of work and in substantial debt. 

“Labour shortages continue to affect the agricultural sector and the seasonal workers' visas are designed to address these pressures,” Dame Sara Thornton, consultant on modern slavery for CCLA, said. “But there is still insufficient focus on protecting vulnerable workers, who travel to the UK from over 50 countries, from harm. Experts who have interviewed seasonal workers have identified many indicators of forced labour. This is happening today in the UK. Both government and business can and should do more.”    

(Editor’s note: Without prejudging all the rights and wrongs of the issues at stake, it is important that the “S” in ESG – standing for “social” – receivess its due more than it does, given that there is so much focus on global warming and decarbonisation at present. Stories of workers who pay sums to travel to a country, obtain a permit and work, only to find that their debt is a burden they cannot easily repay, are too common to ignore. We welcome feedback on these matters, including from those who disagree with the views presented here, so email tom.burroughes@wealthbriefing.com)