winterbiscuit it definitely happens. On lots of contracts it can state local labour as part of the planning permission. This is supposed to generate employment for the local community.
What actually happens is they have a contractor in mind. They transfer the registered office address to a rented house in the area. Shove 10 blokes in the house, charge £150+ per man per day, pay the rent on the house and pay each bloke £150 each a week. It's legal slave labour and it's killing small companies like us.
We have a couple of young lads working for us on £300-£400 per week.
The blokes on £150 a week send £100 a week home. The cost of living between here and eastern Europe means they are better off working and living here in those conditions than living at home or bringing their families here. Meanwhile the average UK based family is struggling to pay bills and keep in work because there just aren't enough jobs to go around.
And we have a skills shortage in the building industry because it's not worth setting trainees on as once skilled you can't afford to pay then enough to pay their bills.
And we do have a genuine skills shortfall which should be driving prices higher. But it doesn't because you get eu gangers flooding sites with partially trained labour. One bloke might know how to build a frame. The next bloke knows how to do the fireproofing, the next how to measure and cut boards and so on. Then the industry doesn't need to invest in British training so the skills are lost.
The building industry is a vital part of the Uk economy and unless something changes we are going to struggle to build in the future.
We have been trading 10 years. Dp has been in the trade for 30 years. He says he has never seen it as bad. He was earning more money 20 years ago for less skilled work. His skill base has developed over time.
We have just turned down a massive contract because we can't find enough skilled labour to do it and break even never mind make a profit on the prices we have been offered.
It will get built by gangs of eastern Europeans living in shit holes being paid a pittance. The contractors and gangers will be quids in.
It was about 2 years work for 8-12 men. Its not going to cripple the local economy not getting that money but it could have been 8-12 families secure for a while.