Report: Blacklisting in Employment: Addressing the Crimes of the Past
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House of Commons Scottish Affairs Committee Blacklisting in Employment: addressing the crimes of the past; moving towards best practice Sixth Report of Session 2013–14 Report, together with formal minutes Ordered by the House of Commons to be printed 12 March 2014 HC 543 Published on 14 March 2014 by authority of the House of Commons London: The Stationery Office Limited £0.00 The Scottish Affairs Committee The Scottish Affairs Committee is appointed by the House of Commons to examine the expenditure, administration, and policy of the Scotland Office (including (i) relations with the Scottish Parliament and (ii) administration and expenditure of the offices of the Advocate General for Scotland (but excluding individual cases and advice given within government by the Advocate General)). Current membership Mr Ian Davidson MP (Labour/Co-op, Glasgow South West) (Chair) Mike Crockart MP (Liberal Democrat, Edinburgh West) Jim McGovern MP (Labour, Dundee West) Graeme Morrice MP (Labour, Livingston) Pamela Nash MP (Labour, Airdrie and Shotts) Sir Jim Paice MP (Conservative, South East Cambridgeshire) Simon Reevell MP (Conservative, Dewsbury) Mr Alan Reid MP (Liberal Democrat, Argyll and Bute) Lindsay Roy MP (Labour, Glenrothes) Dr Eilidh Whiteford MP (Scottish National Party, Banff and Buchan) The following members were also members of the committee during the Parliament: Fiona Bruce MP (Conservative, Congleton) Mike Freer MP (Conservative, Finchley and Golders Green) Cathy Jamieson MP (Labour/Co-op, Kilmarnock and Loudoun) Mrs Eleanor Laing MP (Conservative, Epping Forest) Mark Menzies MP (Conservative, Fylde) Iain McKenzie MP (Labour, Inverclyde) David Mowat MP (Conservative, Warrington South) Fiona O’Donnell MP (Labour, East Lothian) Julian Smith MP (Conservative, Skipton and Ripon) Powers The committee is one of the departmental select committees, the powers of which are set out in House of Commons Standing Orders, principally in SO No 152. These are available on the internet via www.parliament.uk. Publication The Reports and evidence of the Committee are published by The Stationery Office by Order of the House. All publications of the Committee (including press notices) are on the internet at www.parliament.uk/scotaffcom. A list of Reports of the Committee in the present parliament is at the back of this volume. The Reports of the Committee, the formal minutes relating to that report, oral evidence taken and some or all written evidence are available in a printed volume. Additional written evidence may be published on the internet only. Committee staff The current staff of the Committee are Rebecca Davies (Clerk), Rhiannon Hollis (Clerk), Phil Jones (Inquiry Manager), Elizabeth McEnhill (Assistant Policy Analyst), Gabrielle Hill (Senior Committee Assistant) and Rosie Tate (Committee Assistant). Contacts All correspondence should be addressed to the Clerk of the Scottish Affairs Committee, House of Commons, 7 Millbank, London SW1P 3JA. The telephone number for general enquiries is 020 7219 6123; the Committee’s email address is [email protected] Blacklisting in Employment 1 Contents Report Page Summary 3 Conclusions and recommendations 4 1 Introduction 7 Background 7 Our inquiry 7 2 Addressing the crimes of the past 10 Compensation scheme 10 Identifying the victim 11 3 Towards best practice: procurement in the public sector 14 Public procurement: a lead from Wales 14 Pre-qualification questions 15 Self-cleaning 15 4 Towards best practice: employment contracts in the private sector 18 EDF and trade unions at Hinkley Point C 18 On-going monitoring and reporting procedures for health and safety 19 Employment brokerage and direct employment 20 5 Legislative framework 23 Formal Minutes 25 Witnesses 26 List of printed written evidence 27 List of Reports from the Committee during the current Parliament 28 Blacklisting in Employment 3 Summary In our previous report on blacklisting we showed the existence of an organised conspiracy by some construction firms to deny employment to those workers seen as troublemakers, often because of their pursuit of trade union and health and safety issues. In this report, we identify how these firms can make amends and also how best practice can be adopted to ensure that blacklisting is not allowed to reoccur. It is clear to us that the role of the state, at a UK, devolved or local level, either as direct client or as funder, is central in achieving both objectives. We believe in blacklisting the blacklisters. Thus any firm which now blacklists should be disqualified from all publicly funded work. Those who were caught blacklisting in the past should also be excluded unless they undertake a process known as ‘self-cleaning’. This would involve various activities, including an admission of guilt, full compensation and other appropriate remedial steps. We believe that the levels of restitution should not be solely for the companies themselves to determine, but must be agreed after negotiations with the relevant trade unions and representatives of blacklisted workers. However, simply ending blacklisting is not enough. We were led into our current enquiries as a result of our concern about health and safety in construction and we wish to pursue ways of producing a better industry. We have identified the contracts agreed between trade unions and EDF for the construction of its Hinkley Point C site as being current best practice for the industry and would wish to see the best features of these contracts adopted as standard practice throughout the entirety of the public sector and for all publicly funded projects. In particular, we support their mechanisms for ongoing monitoring and reporting procedures for health and safety, as well as the commitment to direct employment and the establishment of an employment brokerage for all jobs on the site. We will be urging the UK and devolved Governments to implement these standards on all publicly funded contracts in future. Two other points are worth making. Many of those who were blacklisted have not yet been contacted and been made aware of their status. We will look at ways in which 100% notification can be achieved. Finally, we want to pay tribute to both the Welsh Government, who have taken a clear and unequivocal ethical stance on this issue and provided a political lead which many other bodies in the public sector have subsequently followed, and to the activists of the Blacklisting Support Group, who have fought over a long number of years to maintain this issue in the public eye and to seek recognition for the injustices experienced by so many working people. 4 Blacklisting in Employment Conclusions and recommendations Addressing the crimes of the past 1. We welcome the steps taken by the eight construction companies who have set up a compensation scheme for victims of blacklisting. We understand that discussions are underway between interested parties so will not comment on either the details of the scheme or the progress of the negotiations at this stage. However, we would expect that the key principles of apology, adequate compensation – not only for possible loss of earnings – and employee assistance for those still of working age, will form key parts of any agreed scheme. (Paragraph 16) 2. All the information available to us suggests that most of the firms involved would have continued to use TCA and its sinister and odious practices had they not been caught. This view was epitomised by the appalling performance at the Committee by Stephen Ratcliffe, Director, UK Contractors. In these circumstances, the onus lies with the construction firms involved to clearly and unequivocally demonstrate that their repentance is genuine. This will not be achieved by parsimony, whether of cash or of spirit. (Paragraph 17) 3. We are also aware of fears that, in the event of a disagreement between the negotiators, there will be a unilateral introduction of a compensation scheme. We believe that, to be accepted as valid, any compensation scheme will have to be agreed between representatives of the sinners and representatives of the sufferers. We would regard any unilateral introduction of a compensation scheme to be an act of bad faith by those involved, likely to be motivated by a desire to minimise financial and reputational damage rather than being a genuine attempt to address the crimes of the past. (Paragraph 18) 4. We welcome the efforts of the ICO which have been made to date, particularly its work with the DWP, to identify and contact those individuals who were blacklisted and may be eligible to receive compensation. However, we are concerned that there may be many more individuals who may need to be contacted. We recommend that all parties involved be brought together in order to discuss how best more victims can be contacted. We also endorse the view of the Welsh Government and others that the families of victims should also be eligible for compensation when the original victim has passed away. (Paragraph 19) Towards best practice: procurement in the public sector 5. We welcome the Welsh Government’s pioneering approach to tackling blacklisting through public procurement and congratulate them for the political leadership they have shown on this issue. If the UK Government are reluctant to issue statutory guidance, we are keen that such measures should have the strongest possible legal foundation and recommend that consideration be given to devolving the appropriate legislative powers to enable the Welsh Government to put its guidance on a statutory footing. (Paragraph 30) Blacklisting in Employment 5 6. Self-cleaning is an important step as it places responsibility on contractors to demonstrate how they have changed and to make amends for their past blacklisting activity. We recommend that firms that have been involved in blacklisting should be required to demonstrate how they have self-cleaned before being allowed to tender for future public contracts. It is our view that firms which do not participate fully in an agreed compensation scheme after having been caught using the blacklisting service of TCA or any similar conspiracy, should be deemed not to have ‘self- cleaned’.