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Report

2 Oct 2019

Author:
Jill Wells and Maria da Graca Prado (Engineers Against Poverty)

Protecting the wages of migrant construction workers: What can be learned from systems of wage protection in China, EU, US and Latin America?

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[Main findings and measures for GGC states to introduce:]

  • A system of chain liability… can provide a strong deterrent effect to late, partial or non-payment of wages to construction workers.
  • A nuanced system of secondary joint liability… can create incentives for contractors and project owners to employ appropriate due diligence checks…
  • Extending liability for wages to the users of the labour (which may be main contractor or subcontractors) would seem to be a priority.
  • Licensing and registering of labour suppliers as employment agencies, and extending the penalties for wage violations that the agencies are liable for to the user company may be an alternative.
  • Legally enforceable obligation[s] on main contractors to:
      • check that all workers on a site which they control are enrolled in the WPS;
      • introduce a clocking system on major sites to provide an accurate record of workers’ hours and overtime;
      • ensure that contracts with subcontractors contain sufficient funds for wages to be paid by the subcontractor at the minimum rate.
  • Extending liability and/or obligations… [with] strong sanctions against those who fail to comply. Directing penalties against the top of the chain… can send a strong signal to others. Debarment from government contracts is the strongest signal that can be used against main contractors.