Blacklisting

Ian Davidson Excerpts

Wednesday 16th October 2013 Westminster Hall

[Mr Ian Davidson (Glasgow South West) (Lab/Co-op)]

I am possibly the only Member here who has had access to all the Consulting Association files and records. I had that access, on condition of confidentiality, in my capacity as Chair of the Select Committee on Scottish Affairs. I am glad that the coming out of the minutes has focused people’s attention on activities such as the involvement of the police.

There are two sides: one looking backwards and one looking forwards. Looking backwards, first, we need to be absolutely clear that there is a role for Government in ensuring that those on whom cards and information are held are identified. I refer Members to the correspondence that the Scottish Affairs Committee recently had from the Information Commissioner’s Office about the difficulty it is experiencing in taking matters forward.

Secondly, we want an apology from the firms involved. Thirdly, we want compensation. Fourthly, we want to know all the firms involved, not just a few. I welcome the apology from some of the firms involved, but we must recognise: first, that that does not include all the firms who participated in blacklisting; secondly, that the negotiations and settlement will be exceedingly complex; and, thirdly, that a solution cannot be imposed unilaterally by the companies, but must be the subject of negotiation with the unions involved and those representing people who have been blacklisted. There must a negotiated settlement, rather than imposition.

Looking forwards, we now recognise that there must be legal changes. It has been conceded that there was blacklisting on Crossrail, and yet the law on blacklisting was not broken. That leaves us in the position where something clearly must be done. I hope the Minister accepts that and takes the matter forward. We must find a way to ensure that when a new construction site is established and a work force taken on, there is a review after the event to identify whether there is evidence of blacklisting. We need wider acceptance that companies that have not apologised or compensated can be and should be kept off public and private sector contract shortlists. There must be a code of conduct for firms when dealing with employees in these matters.

My final point looks further forwards to the question of an inquiry. I hope that the actions that we in the Scottish Affairs Committee identified and I have commented on today do not have to wait until a full public inquiry. The nature of public inquiries is that they look backwards and take years. Many of the people involved are now elderly and, in my view, require compensation. Those who are not elderly require assistance in getting back into the industry, so that they can have adequate compensation and employment for the working time they have left. We need further inquiries into the role of the police and state security services. The Government have not been unhelpful in pursuing some of the issues, but, as they would expect, I do not believe that they have been helpful enough.

--- Later in debate ---

[The Parliamentary Under-Secretary of State for Business, Innovation and Skills (Jo Swinson)]

It is a great pleasure to serve under your chairmanship, Sir Alan. I congratulate the hon. Member for Hampstead and Kilburn (Glenda Jackson) on securing the debate and opening it in her typically powerful style, with a degree of conciseness, which other Members have managed to emulate. That has meant that we have heard from a good number of Members today, which is positive. I know that a range of Members from all parts of the House have been working on the issue. We discussed it in January, we are discussing it now, and, as the hon. Member for Nottingham North (Mr Allen) said, I am sure it will be not the last time we discuss it. It is important for the House to return to the issue, to be updated on it and to ask further questions on it. As the Minister, I am more than happy to be part of that.

The hon. Member for Hampstead and Kilburn clearly set out at the beginning of the debate that “the practice of blacklisting” is an innocuous form of words, but that what we are talking about is abhorrent and illegal. All Members who have spoken have rightly echoed those sentiments in their various ways, talking about their experiences in their constituencies or, in some cases, such as that of the hon. Member for Paisley and Renfrewshire North (Jim Sheridan), their own lives.

The Government’s position is the same: this practice is not acceptable in any way. No responsible company should be involved in blacklisting, whether that is providing information for a blacklist, using a blacklist, consulting a blacklist or using information from a previous blacklist that was in operation before the regulations were introduced in 2010. That is not the behaviour of any responsible or law-abiding company or any moral individual. People should be appointed to roles based on their merits and whether they can do the job. If they are independent-minded and involved enough to be able to flag up issues, such as health and safety problems in the workplace, or if they want to give more to their workplace through involvement in trade union activities, that is to be commended. Any employer worth its salt will recognise the positive nature of having an engaged and involved work force that are actively interested in ensuring that their workplace is safe and effective for everyone. The experiences that we have heard about have been not only abhorrent, but hugely counter-productive, as many hon. Members have mentioned, on issues such as workplace safety records. We want to encourage an atmosphere where people can raise issues if there are problems without fearing that that will impact on their future employability.

As hon. Members know, there are significant powers in place to deal with blacklisting, but I entirely understand the frustration. I think it was the hon. Member for Nottingham North who mentioned the case of the Consulting Association and Ian Kerr, the £5,000 fine and the lack of ability to take any kind of serious action against the individuals responsible, because the framework was not in place at that time. That situation rightly needed addressing. The previous Government addressed that issue with the consultation on and implementation of the Employment Relations Act 1999 (Blacklists) Regulations 2010, which mean that someone is looking at a £500,000 fine instead of a £5,000 fine. That might not be the unlimited amount that some hon. Members have called for, but no one can deny that it is a serious amount. There is data protection, but there is also the ability to award maximum compensation of some £65,000—the minimum is £5,000—through the employment tribunals system. We are in a better position on the legal framework.

[Mr Davidson]

Does the Minister accept that the existing legislation must be flawed if someone can be blacklisted on Crossrail without the blacklisting legislation being broken?

[Jo Swinson]

The hon. Gentleman and I have discussed the issue informally around the House on a few occasions, and I very much welcome the work that he and his Select Committee have been doing on it. I look forward to reading the Committee’s report. We are, of course, willing to look again at whether there are any gaps in the legislation as a result of any evidence that his investigation discovers.

On Crossrail, at the beginning of September the two parties involved—I think it was Unite and BFK—announced that blacklisting had not taken place. A further statement was issued by Unite some days later. I am happy to look at that and hear from the hon. Gentleman and Unite whether there are specific issues there, particularly with contracting, which may be partly why that issue arose. I am happy to liaise with him as his Committee continues its investigation with a view to producing a report.