Eight firms including Sir Robert McAlpine, Balfour Beatty and Skanska propose negotiated settlement

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Eight of the UK鈥檚 largest contractors are proposing an industry compensation scheme for victims of blacklisting, 好色先生TV can reveal.

More than four-and-a-half years after the blacklisting scandal emerged with the discovery of a 3,200-name blacklist database held by the Consulting Association (TCA), Sir Robert McAlpine - the primary defendant in an ongoing High Court compensation claim brought by the Blacklist Support Group - has joined with seven other main contractors in launching a Construction Workers Compensation Scheme.

The others are Balfour Beatty, Carillion, Costain, Kier, Laing O鈥橰ourke, Skanska and Vinci, all seven of which were named in August by Sir Robert McAlpine as co-defendants to the action as part of its legal defence.

At the time, Sir Robert McAlpine denied liability for any damages caused through its use of the services of TCA.

Two other major firms named as co-defendants by Sir Robert McAlpine - Bam and Amec - are not thought to be part of the scheme.

The blacklisting scandal has grown steadily in prominence over the past year largely thanks to the ongoing inquiry by the Scottish Affairs committee in the House of Commons, the case brought by the Blacklist Support Group and a second High Court action raised by the GMB union against a number of the same firms.

The new compensation scheme is intended for those whose names are on the TCA database and the eight companies now intend to negotiate with representatives of the blacklisted workers to determine the appropriate level of compensation for each individual.

The former chief executive of the government-funded mediation body Acas, John Taylor, is working on behalf of the group to broker an agreement, 好色先生TV understands.

The eight firms are believed to be encouraging other construction companies which also used TCA to join the scheme.

They are also expected to issue an apology for the effects of blacklisting and propose an industry-wide code of conduct to prevent any recurrence of blacklisting, something first proposed in 好色先生TV in July by UK Contractors Group chairman James Wates.

The 44 construction firms that used the services of the Midlands-based TCA - which was run by the late Ian Kerr -paid an annual 拢3,000-a-year subscription plus 拢2.20 for each blacklist check made.

Some firms spent hundreds of thousands of pounds in total with Sir Robert McAlpine and Skanska both spending more than 拢200,000 over the entire period that TCA was used.

The full database of 3,200 names is held by the Information Commissioner鈥檚 Office, which uncovered TCA but so far has only positively identified around 400 of these individuals.

The ICO has cited the Data Protection Act in insisting that people who suspect they were on the blacklist contact the ICO to confirm this.

Speaking on the BBC鈥檚 Radio 4 Today programme this morning, Justin Bowden, national officer at the GMB union, said: 鈥淲e鈥檙e viewing this as an admission that these companies did blacklist our members.

鈥淲e hope that what is a slightly luke warm apology is in fact a well meant and well intentioned effort to move this forward.鈥

Bowden said he wanted to see industry 鈥渃leansed鈥 of those involved in blacklisting and for compensation to be paid to hose affected by the practice.

He said compensation could run into the 鈥渉undreds of millions of pounds鈥.

Labour鈥檚 shadow business secretary Chuka Umunna said that while the announcement was a 鈥渨elcome step鈥 it was disappointing that it only covered eight firms.

He said: 鈥淟abour has led calls for those companies guilty of blacklisting to come forward, apologise and provide compensation to victims of the scandal.

鈥淭his announcement is a welcome step, though it should have been made a long time ago.

鈥淕iven that 44 companies have been named as having used the construction industry blacklist, it is regrettable this announcement only covers eight firms.

鈥淲e will be closely monitoring and scrutinising the compensation scheme as it progresses to ensure it provides proper redress to victims swiftly and commands confidence.

鈥淚t also underlines the need for a full inquiry into the blacklisting scandal to make sure it is never repeated. If ministers refuse to take this crucial step, a future Labour government will.鈥

Steve Murphy general secretary of UCATT, said:   鈥淲hile this could be a significant victory in the battle for justice for the blacklisted workers, there is still a great deal of information we do not yet have including how the scheme will work and who will be eligible.

鈥淯ntil we have all the information and it is clear that the scheme is, transparent, open and accessible to all victims of blacklisting we cannot endorse it.鈥

Murphy added that UCATT would continue its campaign for a full public inquiry into blacklisting.