Two Aims, One Goal
Article Date: 15/05/2008
Keeping self-employed subbies working in the industry and solving the skills gap are important issues, we discuss a very simple solution.
The industry needs thousands of trainees to bridge the skills gap, but apprentices need continuity in employment to complete their training and small contractors cannot always commit to providing long term employment. Major contractors pay lip service to solving the skills shortage and take on a few apprentices, but on the whole do not employ a workforce direct, leaving that responsibility to companies in the supply chain.
Boris Johnson, the new Mayor of London says, “In just four years' time the greatest sporting event in the world will roll into the greatest city in the world and I can't wait for the Games to begin. But for the Olympics and Paralympics to be judged as a truly great event, it must be about more than three weeks of athletics. When the Olympic flame has passed on, London must have changed for the better.
It gives us a tremendous opportunity to regenerate huge parts of London. It is the responsibility of the Mayor to champion this change and ensure that the city is left a legacy that will last a lifetime: affordable homes, improved transport links, world-class sports facilities and new jobs.
Absolutely! To date though, only 78 apprentices have been employed on the Olympic Development. Something must be done, and quickly, before a once in a lifetime opportunity is lost forever.
CWC WORKFORCE has already been contacted by the Mayor ‘s office and we have every confidence that he will listen to our argument. In the meantime we are rolling out our own pilot scheme to prove that a solution is easily at hand.
Colleges across London and in towns around the M25 are training young people in construction skills but find that no construction employer is willing to employ them. The courses are far more accessible and practical than the ones run by the National Construction College (see the apprentices article on our Projects webpage) but in all cases the trainees need hands on experience on real building sites to complete their training.
Joe Corrigan, Head of School at Basildon and Thurrock College says, it’s dire, our lads leave here and we do not know what happens to them, they may just end up on the dole, it’s a terrible waste of resources.
CWC WORKFORCE puts forward a two pronged attack which solves two major problems in the industry.
Problem One
Construction companies which have employed labourers under CIS will be hammered by HMRC under the new legislation with fines of up to £3000 per worker.
Solution One
Those companies to employ a construction trainee on a daywork basis at the same cost as a CIS labourer, through CWC WORKFORCE under 14 day invoice and 14 days notice terms.
Our company handles PAYE responsibilities and skills certification and with proper notice that a job is coming to an end, like an ordinary employment agency, we place the trainee with another industry partner to provide continuity in training.
Did you know? Labourers earning under £70 per day receive a higher net pay under PAYE than under CIS!
Problem Two
Self-employed labour only subcontractors are being targeted by HMRC, in most cases where there is long term service with one contractor; the taxman will force the subbie to become employed under PAYE.
Solution Two
The subcontractor takes on an apprentice and provides hands on training. CWC WORKFORCE takes on the subcontractor and apprentice, charging both to the contractor. We pay the subcontractor under CIS and the apprentice under PAYE on behalf of the subcontractor.
Many schemes which promise to keep a subbie self-employed turn out to be too good to be true. This scheme may seem to be too simplistic, but HMRC insist that someone who employs a worker cannot be an employee themselves.
PROTECT, PRESERVE AND PROVIDE JOBS FOR THE FUTURE WITH CWC WORKFORCE
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