GAMA
Scandal Workers fight slave wages By Stephen Boyd |
| Hundreds of Turkish workers employed by GAMA walked off building sites in unofficial industrial action despite threats and intimidation from the company. After many months of patient work, and investigation by the Socialist Party, GAMA has been exposed as gangsters involved in gross exploitation of their migrant workers. The exposure of this corruption and exploitation has given the GAMA workers the confidence to stand up and fight for their rights and to get back the millions that their employers have stolen from them. Joe Higgins TD used the phrase "bonded labour" when he first exposed this scandal in the Dail. And that's exactly what the GAMA workers were. GAMA's Turkish workforce worked, slept and ate on the building sites. Their work permits are held by the company who use the threat of withdrawing them and sending them back to Turkey, a country of mass unemployment and widespread poverty, as a weapon to force them to accept their lot. The government is complicit in this scandal as it was Mary Harney, Tanaiste and Minister for Health, who went to Turkey to encourage GAMA to set up in Ireland - and it is the government's work permit scheme that allows GAMA and many other employers to grossly exploit migrant labour. Since the Socialist Party exposed GAMA many other examples of the super-exploitation of migrant labour have come to light. The Fillipino woman employed as a beautician with Irish Ferries for €1 an hour! The migrant farm labourers again being paid only €1 an hour and being fed brown sauce sandwiches as their main meal for the day! Thousands of migrant workers are being exploited by Irish capitalism. SIPTU are also responsible for allowing this exploitation to take place. Incredibly the Turkish workers at GAMA are members of SIPTU, yet its leaders were shocked by the news of the slave wages the Turkish workers have been receiving. SIPTU is the biggest trade union in Ireland with hundreds of full time workers, access to legal teams and substantial resources. Yet its members at GAMA were being paid at little as €2.20 an hour for nearly five years and it could uncover nothing. Compared
to SIPTU the Socialist Party has small resources but we got results because
we had the political determination to get stuck in and work patiently
over months to uncover and to fight to undo a major injustice. The Socialist
Party understands that exploitation is inherent in the capitalist system.
Socialist Party demands: -
GAMA workers have immediate access to all of their funds at Finansbank. |
| A huge amount has happened since Joe Higgins TD first raised allegations in the Dail that GAMA, the Turkish multinational construction company, was operating a modern version of bonded labour on its sites in Ireland. Joe alleged that GAMA had robbed its Turkish employees of hundreds of millions of euros in wages. Joe
Higgins allegations forced the Dept. of Enterprise, Trade and Employment
to launch an investigation but the publication of their report, which
would have recommended a more forensic investigation of the company, has
been temporarily stopped by GAMA through a high court injunction in late
March. At the same time up to €30 million of the stolen wages were
found in Finansbank in Amsterdam. This discovery was crucial in convincing
hundreds of GAMA's Turkish workers, in the face of intense intimidation
from the company, to go on strike. An incredible picture is emerging of
highly organised, brutal exploitation of labour and financial fraud. €2.20 an hour General operatives were paid e2.20 an hour, with slight increases for overtime and Sunday work. Skilled workers from Turkey like carpenters had a slightly higher rate starting just above €3 an hour. People were stunned when GAMA completed the Ballincollig By-Pass six months ahead of schedule. They were able to achieve this on the basis of an incredibly long working week. The average working week of those who were interviewed by the inspectors was 84 hours. GAMA also benefited from a tax loophole because they claimed their workers were domiciled in Turkey and they didn't have to pay income tax. If they were paid what GAMA was claiming, the workers would have earned close to €5,000 a month, instead they got less than a quarter of that amount with the company pocketing the difference to make super profits. The existence of such brutal and extreme exploitation in Ireland in the 21st Century has shocked people. Many perhaps thought that migrant workers were being mistreated but that Joe Higgins and the Socialist Party had possibly overstated the extent of the abuse. When the allegations were first made public, GAMA came out fighting and dismissed them. Their public and legal representative Richard Grogan of PC Moore Solicitors said he welcomed the investigation and looked forward to Joe Higgins apologising to the company at its completion. Richard Grogan has now severed his links with GAMA. The only way that GAMA could possibly cover up such a robbery was by segregating the Turkish workers as much as possible from other workers and the local community. The company also used the threat of withdrawing the workers' work permits and sending them back to Turkey to keep them compliant. It is also clear that many workers feared for their physical safety and that of their families back in Turkey. There have been reports of family members in Turkey being threatened because of the stand that the workers are making in Ireland. GAMA took out an injunction against the publication of the Labour Inspectorate's Report because it will be hugely damaging to the company but also in order to give itself time to try to concoct a cover-up of the truth. On 4 March they had tried to limit the damage by saying that they had found that some workers were underpaid by about 8% and that the difference would be repaid. GAMA said some middle managers in Turkey were suspended. Crucially GAMA also tried to contradict the content of the testimonies given by the workers regarding wage levels by saying that their operatives worked no more than 48 hours a week. The gap between the detailed testimonies of the workers regarding hours worked and monies paid, backed up with the scraps of paper GAMA used as pay slips and statements from the bank accounts in Turkey, and what GAMA said it paid the men could not be bridged. When asked for the workers' timesheets, they said they had been sent to head office in Dublin where they had been shredded. Then the information about the existence of bank accounts in the names of GAMA workers in Finansbank in Amsterdam came to light. It seems that in 2002 GAMA began a practice of opening up accounts in the names of most of its Turkish workers based in Ireland. This was a vain attempt by GAMA to cover themselves in the event of this whole scandal coming to light. They have been depositing the difference between what they have actually paid their workers and the rate they should have received for a 48 hour week into accounts in Finansbank. Joe Higgins, Mick Murphy, four former GAMA workers and Irish Examiner reporter, Michael O'Farrell, went to Amsterdam and discovered that there are bank accounts in the name of current and former GAMA workers. None of the workers knew of the existence of these accounts. Substantial numbers of workers have returned to Turkey without any knowledge of this money. On average each account contains up to e15,000 but some would have substantially more. In Turkish terms that is an awful lot of money. It is inconceivable that these workers knew the accounts existed as living conditions in Turkey are hard and the idea that these workers would leave such amounts completely untouched is simply unbelievable. Finansbank These accounts contain up to €30 million. But this is only part of this massive fraud and rip-off. Where is the money for the wages due to these Turkish workers for the other 40 hours overtime that they were forced to work each week? Some of GAMA's workers who are on flat rates of pay don't have any accounts in Finansbank, where is their money? This scandal points to a very well organised financial fraud and embezzlement. Who was involved and who knew about it in Turkey, the Netherlands and in Ireland are crucial questions that must be answered. GAMA and Finansbank NV claim that the workers did know of these bank accounts as they had signed a form authorising their establishment when they became GAMA employees. The workers will tell you that they did sign many forms when commencing employment with GAMA. Crucially two forms they were asked to sign related to the accounts with Finansbank and both were in English. None of the workers speak English and therefore didn't know what they were signing. They were not given copies and were afraid to ask. One of the forms authorised the setting up of the account and the other authorised an investment company called Ryder Investments NV to take money from the workers accounts. And the money has been taken by Ryder Investments the day after it was deposited into the accounts by GAMA. This is being investigated. €30 million can earn a lot from being invested, or could be used borrow money for financial or capital investment. What is clear is that this money was never intended to end up in the hands of the Turkish workers. Finansbank have admitted that it was unusual that no GAMA worker has ever inquired about their accounts, and that the bank never sent them statements. Both GAMA and Finansbank have refused to give any information on Ryder Investments. What GAMA has done is simply pursue the policies of capitalism, that is, take every opportunity you can to maximise profits. The deregulation of markets and the orgy of profiteering that it spawns and the neo-liberal policies pursued globally and by the Irish Government, have created conditions for such extreme exploitation. Tax loophole The policies of the Irish Government encouraged and helped GAMA specifically. The tax loophole that allowed them not to pay income tax gave them a competitive edge. Their work permit scheme made the workers dependent on GAMA. They were happy when GAMA was able to undercut all comers and gave GAMA important state sponsored projects but did they ever seriously check the wages that the workers were receiving? It is clear their lower bids were based on the vicious exploitation. That GAMA was able to get an injunction to stop the publication of the Labour Inspectorate's report and the fact that the state has so far done nothing to recover the stolen money sitting in Finansbank, shows how the system is geared against workers. Fundamentally there is little difference between GAMA's mistreatment of the 2,000 Turkish workers it has brought to Ireland and the declaration by the Bank of Ireland that they are making e4 million a day in profits but are going all-out to maximise their profits by throwing 2,000 workers on the dole and increasing the exploitation on the remaining staff! The drive of bosses to push down wages must be resisted in the workplaces and politically. If unchallenged capitalism will lead to increasing poverty and economic crisis. A socialist society would overcome the madness of the system that only produces wealth so a minority can profit and where exploitation is inevitable. It is entirely possible to harness the economic resources and the talents of people so that everyone's economic needs could be met and where everyone would benefit from the fruits of their labour. |
How
did you first find out that you were being underpaid? Could
you tell us something about the conditions on the sites? Do
many of you have families to support in Turkey from the money you earn
here? How
often do the workers get to go home? What
was your reaction to the Finansbank accounts? Have
the company tried to intimidate any of the workers? A
GAMA worker at the Tynagh site said: When
Mick Murphy, Joe Higgins and other Socialist Party members first got involved,
what was the reaction of the workers? |