Work permits withheld from building firm in pay inquiry

A Turkish construction firm which underpaid hundreds of workers for most of last year is to be denied new work permits until …

A Turkish construction firm which underpaid hundreds of workers for most of last year is to be denied new work permits until an official investigation has been completed, writes Chris Dooley.

Gama Construction admitted that most of its 800 Turkish employees had been receiving less than the legal minimum rate for the construction industry. It said "errors" involving underpayments of €50 to €3,500 for the workers concerned had been uncovered in an internal review.

It had suspended three managerial staff, all based in Turkey, while an inquiry took place into "how this breach of the company's policies and normal procedures occurred".

Minister for Employment Micheál Martin noted the admission "with concern" and said the firm would receive no new work permits during an inquiry by his Department.

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That inquiry began last month after Socialist TD Joe Higgins claimed in the Dáil that Gama was engaged in "immigrant worker exploitation of massive proportions". He said the firm demanded "grotesque" working hours, paid unskilled staff €2-€3 an hour and housed workers in "company barracks".

Gama dismissed the allegations as "malicious". It has operated in Ireland since 2000 and is responsible for major projects such as the Huntstown power station and the Ennis and Ballincollig bypasses.

It has about 400 Irish staff in addition to its Turkish workforce. All its workers are members of unions.

Mr Higgins claimed that Gama's admission of underpayments was "only the beginning of the vindication" of the claims he had made. The company was engaging in a damage-limitation and cynical exercise to cover up its exploitation of Turkish workers in Ireland.

Gama said the underpayments resulted in workers receiving an average of 8 per cent less than their minimum entitlement. Instead of receiving €12.96 an hour, those affected had been paid about €12.

The company's legal adviser, solicitor Richard Grogan, said he had advised it to make a full and complete disclosure once the discrepancies had been uncovered.

Chris Dooley

Chris Dooley

Chris Dooley is Foreign Editor of The Irish Times