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A gangmaster in Fife has had her licence revoked after she was caught paying potato graders less than the minimum wage.
Lorna McConaghy, of Glenrothes, was found "not in control of her business" by the Gangmaster Licensing Authority.
The workers received £42 per day for a 7hr 45 minute shift equalling £5.41 per hour which is under the national minimum wage of £5.73 per hour.
The GMB trade union said it proved exploitation is a reality in Scotland.
It is understood Miss McConaghy, who hired out 10 temporary workers to farmers throughout Fife, also was accused of not paying for annual leave as well as providing people who were not who they said they were.
Miss Lorna McConaghy the named principal authority on the licence was found to be acting on behalf of a person who was an "undischarged bankrupt".
Paul Whitehouse, chairman of the GLA said due to the deception involved, he did not believe Miss McConaghy was a fit and proper person to hold a GLA licence.
He said: "Everybody has a right to minimum employment standards, we will continue to make sure everybody gets the protection they deserve.
"We take deception very seriously, if we have been lied to about who controls the business there is a chance that other lies have been told as well."
Harry Donaldson Secretary GMB Scotland said: "GMB fully support the work of the Gangmaster Licensing Authority and the job of work that it does to prevent the exploitation of workers in Scotland.
"As this case proves exploitation is a reality in Scotland today.
It was a campaign by the trade union movement that brought the GLA into existence against the opposition of those promoting market forces."
The Gangmasters Licensing Authority (GLA) was set up to curb the exploitation of workers in the agricultural, horticultural, shellfish gathering and associated processing and packing industries.
The majority of workers involved in these industries come from countries such as Romania, Poland, Slovakia, Hungary, Bulgaria, Lithuania, Latvia, Pakistan and Portugal.
Licensing of gangmasters, was put in place in response to the Morecambe Bay tragedy where 23 cockle pickers died in 2004.
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