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Article

12 Nov 2024

Author:
Joel Dandrea, Crane & Transport Briefing

Construction: Wage theft "critical" global issue for an industry that impacts millions of workers

"Is wage theft in the construction industry reaching crisis point?"

Wage theft in the construction industry is rapidly emerging as a global issue, affecting millions of workers across borders.

From developed nations to emerging economies, construction workers are increasingly vulnerable to exploitation, with wage theft taking various forms, including non-payment for overtime, illegal deductions, underreporting of hours and misclassification of workers. As construction is one of the world’s most critical industries, the global scale of wage theft poses significant challenges for labour rights and economic justice...

Wage theft is clearly not confined to any one region or sector of the workforce. It often targets low-income and migrant workers, who make up a significant portion of the construction workforce...

One of the primary reasons wage theft is so rampant in the construction industry is the lack of strong labour protection and enforcement mechanisms. Even in countries with robust labour laws the transient nature of construction work makes enforcement difficult. Construction workers often move from one jobsite to another. Without union protections or collective bargaining agreements they have little recourse when their wages are stolen.

In developing countries, labour laws are often weak, and enforcement is minimal. Employers can exploit workers with impunity, knowing regulatory bodies lack the resources or political will to hold them accountable. Consequently, the cost advantage for companies choosing to cheat in this way, can truly create separation from the competition...

Another key component is empowering workers to advocate for themselves through education programmes, informing workers of their rights, and by supporting the formation of unions...