A delegation of the GMB Union has met with EU officials to urge them to close what they consider a “legal loophole” in the Agency Workers Regulations that allows companies to pay temporary workers less than permanent workers, reports The Swindon Advertiser.

The dispute centres on the Swindon distribution centre of parcel delivery firm DHL, where workers are recruited by employment agency 24.7 Recruitment. The workers are then subsequently formally employed through a further company called TemPay Ltd., and receive the minimum wage.

Employees of DHL are paid an addition £2 an hour.

Section 10 of the Agency Workers Regulation (AWR), known in the UK as “Swedish derogation”, allows companies to hire temporary agency workers without having to pay them the same wages as permanent employees if the temporary workers are employed by the agency.

Under UK law, temporary workers who are not given employment contracts by their staffing agency and supplied as temporary agency workers are entitled to receive the same pay as a comparable permanent employee after 12 consecutive weeks of work.

While the practice is entirely legal, GMB members claim that it is unethical and have taken their concerns to the EU.

Chris Watts, President of the Wiltshire and Swindon branch of the GMB, said: “Our delegation to Brussels was extremely successful. We met with senior EU Commission officials for Employment, Social Legislation and Social Dialogue leading on Agency worker legislation.”

“It was interesting to note that only five member nations have allowed Swedish Derogation of agency contracts in their country (UK, Ireland, Sweden, Hungary and Malta). We were able to explain to the EU Commission officials and MEPs that the Swedish Derogation loophole was being inappropriately applied wholesale to hundreds of agency workers in Swindon.”

“This legal trickery is solely for the purpose of working against the principles and spirit of the Agency Workers Directive to promote equality, security, social mobility, and economic stability,” Mr Watts added.

A DHL spokesman said: “The practice of using derogated workers is common throughout the logistics industry.”