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Blacklisting in Construction

23 March 2009

Introduction

I am pleased to have secured this adjournment debate on blacklisting because it is a practice that impacts on the health of the industry and accordingly it is a matter of public concern. Government is the sectors largest client so there is some responsibility to ensure that working practices of the 1930's have no place in a modern construction industry and I hope the minister will take action to help the industry to change

In this debate I want to make four points briefly. The first is the impact on the safety and health culture in the industry. Secondly, is the climate of fear blacklisting creates and the hardship it causes to individuals who are discriminated against. Thirdly, many of the companies using the list kept by the Consulting Association were major companies working on publicly procured projects and finally I want to suggest that as well as other measures Sec. 3 of the 1999 ERA is implemented.

Construction and the UK Economy

Before the onset of the recession the construction industry provided employment for more than 2.8 million people. It contributed 8.7% of the UK economies Gross Value Added in 2006. That is twice that produced by energy, automotive and aero space combined. Construction is vital that is why we need a modern construction sector that is world class because it uses the best employment practices.

Construction and Health and Safety

The worrying fact is that construction accounts for almost one third of workplace fatalities in the UK. 2006/07 saw an increase in the number of fatalities from 60 to 77 and in 2007/08 there was 72 fatal injuries. More than a half of those deaths were from a fall or being struck by a falling object.

I believe that work place safety representatives are an essential tool in helping to improve the health and safety culture on site but the blacklisting of people who take on the job militates against better safety on site. This is an area in which the government has an important role to play but work place safety representatives will need to be assured that they will not be blacklisted if they do their job properly.

Between 2004 and 2007 there was a Health and Safety Advisers scheme operating in the construction industry. It was run jointly by Union of Construction Allied Trades and Technicians (UCATT) and the employers. The scheme which included the HSE was considered a success but it has run into the sand because there is no more funding available. Clearly getting this scheme up and running again is important for safety in construction and bearing in mind that the 2007 Construction Design and Management Regulations place an emphasis on the clients role in ensuring health and safety the government has some responsibility to make the scheme operate.

The Impact of Blacklisting on Individuals

I recently spoke with a construction worker whose name is on the blacklist kept by the Consulting Association and he believed that discrimination in the industry was even more insidious. He has worked in the industry all his life and considered he had been black listed for more than thirty years for trade union health and safety activity.

He took the view that the individual companies kept a black list which they circulated to each other. He had reached this conclusion because over the years when he had taken a new job on another site with another company it often happened that within days he was told by management that there was no job for him on that site. Over the years blacklisting has caused him and his family enormous hardship.

Companies Working on Publicly Procured Projects

The Times in an article entitled 'Secret data on workers 'sold' to building companies referred to the fact that Sir Robert McAlpine and other companies made thousands of requests.

The fact that many of the companies making use of the Consulting Association are some of the countries largest construction companies is a worry. Moreover, the fact that the public sector was a client to just over 31% of construction output in 2006 making it the largest customer to the industry suggests that government has some responsibility as a major client to use this powerful lever to ensure companies who use blacklists are not engaged on projects.
But still more could be done to change the behaviour of construction companies working on publicly procured projects by strict use of the CDM Regs and the use of “Workers Health and Safety Advisors”.

Regulations to Prohibit the Blacklisting

My Early Day Motion 1020 which the Minister may have seen does not demand new primary legislation. There is no need since all that is required is for a power already available to the Sec of State sitting on the Statute Book to be enabled.

Section 3 of the 1999 Employment Relations Act provides that the Sec of State may make regulations prohibiting the compilation of lists which;

• Contain details of members trade unions or persons who have taken part in the activities of trade unions; and
• Are compiled with a view to being used by employers or employment agencies for the purpose of discrimination in relation to recruitment or in relation to the treatment of workers

S3 goes on to include the provision for compensation to be paid to individuals whose details appear on the blacklists and permitting unions to take proceedings on behalf of members.

The regulations extend criminal liability for the creation of blacklists to anyone who aids the offence including employers.

In 2003 the government consulted on the regulations. A number of trade unions and trade union law firms responded to say that rather than wait on the evidence of blacklisting the regulations should be enacted immediately. They were not. But now that the evidence has emerged it is time to bring them into effect.

If the IC is to prosecute the Consulting Association and is considering what action to take against the construction companies to whom the information has been supplied the government must use its powers under the regulations to ensure that structures are in place to prevent a re-occurrence.

In 2003 both the CBI and the EEF said they hoped the regulations would not need to be introduced. Well the evidence shows that they are. Presumably now both organisations will stand by their word and support the implementation of the regulations

I welcome DBERR's statement of intention to “ review whether to use its powers if there was compelling evidence that blacklisting was being used”.

What could be more compelling than the evidence produced by the Information Commissioner? His consideration of regulatory action against those firms is welcome but the government must move positively to introduce S3 of the 1999 Act to stop this out dated practice that has blighted so many lives. I hope the Minister will say he is willing to act now.