Labour accuses Tories and Lib Dems of failing to tackle exploitation and undercutting including blocking reforms to the Posted Workers Directive, refusing to reform the Agency Workers Directive, making it easier to sack new workers, and presiding over a massive increase in zero hours contracts.

UKIP would make it even worse by cutting employment protection, and pulling out of the social chapter, and making it easier for agencies and employers to exploit migrant labour.

Tory and Lib Dem failure to act on the impact of immigration is increasing public concern about immigration and making it possible for UKIP to play on people’s fears.

Labour argues that sensible reforms are needed, but that we need to challenge divisive and unpleasant UKIP views about who should be living next door.

Labour is calling for reforms to stop exploitation including:

* strengthening the posted workers directive

* closing the loophole in the agency workers directive

* stopping abuse of zero hours contracts

* stopping agencies only recruiting from abroad

* making exploitation a criminal offence

* increasing enforcement

Framework for free movement of labour in the EU must be reformed.

*         Labour is setting out further reform as part of a wide-ranging package of European reform, following interventions from Ed Miliband, Ed Balls and Douglas Alexander in the past 7 days

*         Labour believes the Posted Workers Directive should be further strengthened to prevent undercutting local jobs and wages. This has been blocked by the Tory led Government despite support from Germany, France & The Netherlands.

 *         These European reforms would go alongside domestic reforms to tackle zero hours contracts, stop agencies recruiting only from abroad and make serious exploitation a criminal offence.

Yvette Cooper, Shadow Home Secretary, said:

“We’re calling for reforms in Europe to deal with immigration concerns.

"The Tories and Liberal Democrats are doing nothing to stop employers exploiting cheap migrant labour to undercut local wages and jobs. And UKIP would make it worse by taking away employment rights

"Instead we need reforms across Europe as well as stronger action here in Britain to prevent companies exploiting immigration.

"People are concerned about immigration. And unless the Government takes action against dodgy employers and agencies who exploit immigration to undercut jobs and wages, those concerns are going to get worse. The Government needs to address the impact of immigration, or UKIP will be able to keep playing on people’s fears.  We need practical solutions to the concerns people have about their jobs and wages. And we need to challenge UKIP’s nasty and divisive approach because they don’t have the answers Britain needs.”

Yvette Cooper added:

“When companies subcontract across Europe, some firms have used it as an opportunity to bring cheaper labour in from abroad and get round the minimum wage or other employment protection. And no one takes responsibility.

"Germany, France and the Netherlands tried to strengthen the rules across Europe to stop employers exploiting immigration but the Tories and Liberal Democrats in the British Government refused. And the Tories and UKIP want to reduce employment protection further - making exploitation more likely.

"It’s time to reform the rules in Europe and in Britain. Right now the system isn’t fair, and it is too easy for dodgy employers or agencies to exploit immigration to undercut local wages and jobs.

"We need reform in Britain and in Europe. Exploiting migrant labour to undercut local wages and jobs should be stopped. So Labour would halt abuse of zero hours contracts, outlaw agencies recruiting only overseas, and make serious exploitation a crime.

"As Ed Miliband said this week, we need reform of Europe, not to pull out of Europe putting British jobs at risk.

"That means we need stronger controls when countries join, reforms to the framework of free movement - including employment rules and benefits to make the system fairer.

"We need practical answers instead of parties like UKIP preying on people’s fears, or pushing divisive, unpleasant views about who they will and won’t live next door to. We will keep challenging UKIP hostility and extremism.

"Labour is the only party with a strong programme of reform in Britain and Europe to make the immigration system fairer.”

Ends