Blacklisting

Margot James Excerpts

Tuesday 5th September 2017 Westminster Hall

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Margot James)]

It is a pleasure to serve under your chairmanship, Mr Walker. I congratulate the hon. Member for Streatham (Chuka Umunna) on securing this important debate and on his opening remarks, which I listened to intently.

I am pleased to have the opportunity to respond to this debate and I want to make it clear that the Government take blacklisting extremely seriously. We hope and trust that blacklisting has already become and will remain a thing of the past, but we are not complacent, and I am even less complacent, having heard from the hon. Gentleman who introduced the debate about evidence that he wishes to put before me afterwards. I was shocked by what I heard and I share his view and that of other Members that blacklisting of trade union members and activists is completely unacceptable. It has absolutely no part to play in modern employment relations.

As hon. Members have noted, we have in place regulations targeted specifically at trade union blacklists and I believe they are both proportionate and robust enough to prevent abuse from occurring. I accept the point that has been made that the horrendous abuse of the past, which was overt, organised and clearly in breach of the law as it stands today, may have been replaced by a more covert approach. That must be borne in mind, but the Employment Relations Act 1999 (Blacklists) Regulations 2010 made it unlawful for an individual or organisation to compile, sell or make use of a blacklist of trade union members or those who have taken part in trade union activities.

Since the introduction of those regulations, no evidence has been presented to the Government or the Information Commissioner that these practices are recurring. If that is no longer the case, naturally I want to know about it. Any individual or trade union who believes they have been the victim of blacklisting practices has the right to take action. They do not have to wait for an independent investigation. They can enforce their rights under the regulations through an employment tribunal or the county court. Anyone who believes they have been affected has the right to pursue justice through these means and we would encourage them to do so.

The measures in the 2010 blacklisting regulations are reinforced by powers in the Data Protection Act 1998, which protect the use of personal data—that was very much needed in the examples we have heard this afternoon. I emphasise that this includes information on trade union membership and sensitive personal data. The Government take the protection of personal data very seriously.

The Information Commissioner’s Office is the regulatory body and was set up to investigate breaches of the Data Protection Act 1998. It has power to take enforcement action, including searching premises, issuing enforcement notices and imposing fines of up to £500,000 for serious breaches. The Government continue to bear down on those who seek to exploit personal data. We have published a statement of intent in relation to the proposed data protection Bill that was announced in the Queen’s Speech. The Bill will implement the general data protection regulation into UK law and will give us one of the most robust and dynamic sets of data laws in the world. It will give people more control over their data, require a higher standard of consent for its use, and prepare Britain for exiting the European Union.

As a result of the general data protection regulation, the Information Commissioner’s fining powers will increase substantially from 25 May 2018, to 4% of an organisation’s annual global turnover or €20 million, whichever is greater.

It is clear that data collection and data analytics in the workplace are gaining in importance. In the light of that and the strengthened framework that the general data protection regulation will create, the Information Commissioner’s Office intends to open a call for evidence, to which hon. Members have alluded, on the implications of modern employment practices in recruitment and selection, and the obligations of employers. The hon. Member for Streatham says that that should happen sooner rather than later. I agree with him. I believe that the call for evidence is scheduled for next year. I will talk to the Information Commissioner’s Office to see whether it can be brought forward.

The call for evidence is an important step in trying to establish not only the true picture of the level of blacklisting that may or may not take place in practice now, but how growth in digital services has created potential new risks for employees and how those may be addressed.

[Sandy Martin (Ipswich) (Lab)]

In my previous capacity on Suffolk County Council, when the council decided to outsource its highways to Kier, we took a motion to council calling for it to ensure that there was no blacklisting in relation to employees of Kier working for Suffolk County Council. That motion was passed unanimously, because Conservative members of Suffolk County Council—like, I am sure, Conservative Members of this Parliament—were vocally opposed to blacklisting. However, nothing was done to find out whether blacklisting was actually taking place. The Minister is talking to us about a search for evidence, but without a public inquiry to find out what has actually taken place, surely there is no way we will get to the bottom of this.

[Margot James]

I thank the hon. Gentleman for his intervention. I can reassure him. If people in his borough have any evidence, the best thing they can do at the moment is to take it to the Information Commissioner, who will investigate it. In fact, the Information Commissioner does not need particular examples even. If they are seeing allegations made against a particular employer or within a sector, they will commit to investigating the issues that his constituents have raised.

[Chris Stephens]

The hon. Member for Ipswich (Sandy Martin), who made the previous intervention, mentioned procurement. Will the Minister tell us what steps the Government are taking on procurement to ensure that companies that blacklist workers do not get public sector contracts?

[Margot James]

I will write to the hon. Gentleman on that matter. We expect high standards of corporate governance for major contracts awarded by the Government. If there is evidence of companies acting in the present day in not only a disreputable but a potentially illegal manner, that will be taken into consideration.

[Jack Dromey]

To press the Minister further on that point, we have heard powerful evidence today in relation to both Crossrail and Big Ben. Does she agree that if there is evidence of complicity in blacklisting, the companies concerned should not get public contracts until such time as they have remedied the bad practices of the past and, indeed, the present?

[Margot James]

The shadow Minister makes a very reasonable point, which I will consider further. I think there is nothing to disagree with in what he has said.

We want to build on the work already undertaken by the Information Commissioner’s Office looking at profiling and big data analytics. The Information Commissioner’s call for evidence, once complete, will be the most recent and authoritative source of data that we have. I can assure hon. Members that the Government will consider the evidence collected and the report on it very carefully indeed.

I want to acknowledge the request from the right hon. Member for Delyn (David Hanson). I have indeed received correspondence from Mr Alan Wainwright. I have looked at it briefly and will examine it thoroughly. The right hon. Gentleman also asked me to look again at the situation with regard to the Shrewsbury 24, and I will write to him on that subject as well.

The Government will continue to take a very close interest in this matter. If the Information Commissioner finds any evidence of current blacklisting, perpetrators can expect to feel the full force of the law, and I am sure—to go back to the shadow Minister’s intervention—that that would have implications for contracting as well. In the meantime, in the absence of clear, strong and compelling evidence to the effect that blacklisting is widespread, we remain of the view that the blacklisting regulations, alongside the proposed changes to the data protection rules, are appropriate and robust tools— the increased fines and accountability are further disincentives—to counter this abhorrent and illegal practice.

I urge all hon. Members to talk to their constituents who raise these matters with them and to the trade unionists in their constituency who have been affected, and to use the call for evidence as a means of exposing any current practice that might be continuing, so that we can eradicate this appalling abuse of people’s human rights at work once and for all.