Nearly 60% of firms with their own workforce said they are losing out to rivals using agency labour.

And firms quizzed by the Electrical Contractors’ Association are worried about the standard of labour supplied by agencies.

Two thirds of firms with 30 or less employees said there was no longer a level playing field in the tendering process due to the extensive use of agency workers.

Forty per cent still recognised the importance of agency workers. But many electrical contractors said they used agency workers as a ‘necessary’ source of flexible labour to meet their needs in the industry.

Concerns expressed by ECA survey respondents about agency workers included:

Unqualified and low skilled labourers taking on electrical work
The use of self-employed workers who may not be paying their taxes
Firms not being compliant with Joint Industry Board (JIB) regulators

ECA Director of Employment and Skills Alex Meikle said: “There is concern among many small electrical firms that a ‘level playing field’ no longer exists when bidding for contracts.

“These businesses say they cannot compete with firms employing lots of agency workers – which include some who may not be paying their taxes.

“The government should ensure that all contracts meet Joint Industry Board standards and tackle any scam payment methods being used.”

The ECA survey also found that the use of agency workers has negatively impacted on the recruitment of apprentices.

Over 60% of respondents said agency workers had an ‘adverse effect’ on apprentice numbers.