OUTSOURCING companies are “riddled with institutional racism,” the TUC racial discrimination and equality conference heard yesterday.

Speaking on the experience of outsourced government workers, PCS union’s Mohammed Shafiq said that the majority of outsourced workers are black, Asian or ethnic minority, with many not speaking English.

“Over the last 14 years, we’ve had policies and procedures that give rise to racism,” he said.

“And then you’ve got the policies and procedures that they have [which are] inherently racist because [they don’t] address the issues of racism within their organisations.

“Many of these black and Asian workers have described that they’ve been treated as second-class citizens within these organisations. They have no value.”

Mr Shafiq said his union will hold the new Labour government to account for its manifesto promises, adding: “If departments took their duty seriously, then they would address the institutional failures [of the companies they work with].

“Fat cats are getting rich while the poor workers are not getting the national minimum wage.”