Eight firms that set up blacklist compensation scheme to write to MPs to clarify that scheme was set up without unions backing
The eight construction giants behind a new scheme set up to compensate victims of blacklisting have said they will write to MPs to clarify a 鈥渕isleading鈥� letter suggesting the scheme had the backing of unions.
In a strained and sometimes tetchy evidence session before the Scottish Affairs select committee last week, bosses of Balfour Beatty, Vinci and Laing O鈥橰ourke 鈥� representing the eight construction firms that set up 鈥� were taken to task by MPs on the committee for writing a 鈥渕isleading鈥� letter to every member of parliament prior to the launch of the scheme.
The MPs on the committee said the letter, along with the press announcement about the TCWCS, created the 鈥渇alse impression鈥� that an agreement had been reached with unions about the scheme, when in fact it had been launched 鈥渦nilaterally鈥� without the backing of unions or representatives of the blacklisted workers.
I think we should write to members and point out that our letter might have misled them
The letter had said that 鈥渇ollowing eight months of discussions with unions and workers鈥� representatives, the scheme has now been finalized鈥� and that 鈥渢he eight companies are confident that TCWCS meets the unions鈥� stated objectives for a compensation scheme鈥�.
Ian Davidson, chairman of the Scottish Affairs Committee, said was an 鈥渁ct of bad faith and a deliberate attempt to deceive鈥�.
The bosses of the three firms appearing before the committee denied there had been any attempt to mislead, but conceded the letter, which was put together by public affairs firm Grayling, could be construed as misleading, with Nick Pollard, the chief executive of Balfour Beatty鈥檚 UK construction business, saying it suffered from 鈥渋nept drafting鈥�.
Andrew Ridley-Barker, Vinci Construction UK managing director, and Callum Tucket, Laing O鈥橰ourke Group finance and commercial director, told the committee the firms behind the scheme would now write to MPs to clarify that TCWCS had been launched without unions鈥� agreement.
鈥淚 think we should write to members and point out that our letter might have misled them,鈥� Ridley-Barker said.
Blacklisting came to light in 2009 when the Information Commissioners Office (ICO) seized a TCA database of 3,213 construction workers used by 44 companies to vet new recruits.
Richard Slaven, a partner at law firm Pinsent Mason, which drew up TCWCS, told the committee the firms had 鈥渃onsulted extensively鈥� with unions and representatives of workers about the formation of the scheme and had 鈥渓istened very carefully鈥� to issues raised, but had been unable to reach agreement on some key points.
These included a demand that victims of blacklisting be guaranteed a job as part of any compensation settlement.
Slaven, appearing alongside the bosses of the firms, said that providing such a guarantee of employment posed 鈥渁 significant risk of acting unlawfully鈥�.
鈥淲e were very disappointed that we weren鈥檛 able to secure the agreement of the unions,鈥� he added.
鈥淲e worked hard to do so 鈥� it wasn鈥檛 through wont of trying.
鈥淯ltimately it became clear that we weren鈥檛 going to be able to satisfy every single demand.鈥�
鈥淭he reason to launch it was because we reached a point where we felt there was no further progress to be made.鈥�
The MPs also called into question the level of compensation provided by the scheme - 拢4,000-拢20,000 for workers whose names were held by TCA and up to 拢100,000 for workers who can prove they were denied employment.
Slaven admitted setting the level of compensation was an 鈥渋nexact science鈥�, but said had been determined based on 鈥渨hat we considered a court was likely to award for damages鈥�.
However, Davidson said the committee had received evidence suggesting victims of blacklisting could expect to receive 鈥渟ignificantly more鈥� 鈥� and as much as 鈥渟ix times鈥� as much 鈥� though the courts than was offered through the scheme.
The MPs also called for the life of the scheme to be extended to allow for the conclusion of the ongoing High Court case into blacklisting, so that awards through the TCWCS could be adjusted to match any awards determined by the courts.
Slaven said he would 鈥渢ake away [the recommendation] and discuss it with our members鈥�.
Slaven said that over the first 10 days of the scheme, 1,100 people accessed the TCWCS website, with 175 people calling the helpline to ask for an inquiry form, of which around 鈥渁 third鈥� had been completed and returned.
Slaven said the scheme had been prevented from contacting individuals on the TCA blacklist directly after the unions applied for a court order preventing the firms from accessing the TCA files, which are now held by the information commissioner.
Slaven said the TWCS had now asked the Information Commissioner鈥檚 Office to inform the individuals directly about the scheme.
鈥榁erbal gymnastics鈥� over the definition of blacklisting
The bosses of the three firms that appered before the Scottish Affairs Committee, were also taken to task over their refusal to concede that the activities of the TCA constituted blacklisting.
The firms connected with blacklisting 鈥� similar to a US class action suite 鈥� from victims of blacklisting.
Although repeatedly apologising for the use of the TCA, Nick Pollard (pictured), Balfour Beatty鈥檚 UK construction chief executive, said whether the activities of the TCA constituted blacklisting was 鈥渁 matter the court is trying to decide at the moment鈥�.
Asked if Balfour Beatty was involved in blacklisting, Pollard said: 鈥淚 don鈥檛 know that we were 鈥� I don鈥檛 want to get into verbal gymnastics on blacklisting but my understanding is blacklisting isn鈥檛 what was done.鈥�
Pollard added: 鈥淢y understanding is blacklisting relates to an anti-union activity and this was not an anti-union activity, therefore in my understanding it was not blacklisting.
鈥淚 didn鈥檛 come here to play mental gymnastics over the definition of a word and I鈥檓 disappointed we鈥檙e doing that,鈥� he added.
鈥淚t was wrong, morally wrong, but in my understanding it was not blacklisting.鈥�
Andrew Ridley-Barker, Vinci Construction UK managing director, said the issue of whether the activities of the TCA constituted blacklisting was 鈥渁t the core, at the heart, of the litigation that is ongoing at the moment鈥�.
He said blacklisting involved the 鈥渁utomatic denial鈥� of work and this was not the case with the services provided by the TCA.
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