Low wages, a tightening labour market and anomalies in the social welfare system are making it harder for the contract cleaning industry to recruit staff. A new study commissioned by FAS says that a three-year development programme is urgently needed if the industry is to overcome its problems.
There are over 26,000 people employed in the industry, of whom 93 per cent are women. Despite their preponderance, women earn on average £64.14p a week, compared with £224.49p for men. This is partly because of their lower hourly rate, £4.95p at the maximum, compared with £6.62p for men; but mainly because women comprise almost all of the industry's part-time workers.
Price competition in the industry is extremely strong, reducing profit margins to 3 or 4 per cent. In a labour-intensive industry, where 80 per cent of costs are absorbed by wages, this translates into very low pay and very high staff turnovers.
"Recruitment is increasingly difficult while, outside a core of older workers, turnover and absenteeism are far higher than any industry would view as normal," the report says. There is, in fact, a 100 per cent staff turnover.
Women have been attracted to the industry because part-time employment is outside normal working hours, usually late at night or early in the morning. As a result they can avoid major childcare expenses. However, the tourism industry and other sectors are now competing for these women as well.
A major problem is that many women have replaced unemployed spouses as the main breadwinner in the family and are therefore entitled to the adult dependant's allowance (ADA). Unfortunately ADA rates have not increased since 1994. Once a cleaner earns over £60 a week her partner's welfare entitlements are cut at a rate of £1 for £1. If a cleaner earns over £90, her partner loses all benefits.
The report says that employers find themselves seeking to hang on to staff who do not want higher wages because of the loss of ADA. Instead there is "strong pressure for legitimate companies to move to cash-in-hand" payments, resulting in casualisation and black economy practices.
The report recommends raising the ADA ceiling significantly, introducing certified training, a supervisory skills course and a career path for staff. It also says that health and safety issues need to be addressed.