Blacklisting payout talks at brink of collapse

Aaron Morby 8 years ago
Share

Blacklisting compensation talks between contractors and unions are on the verge of breaking down.

Unions said that after months of talks the compensation package being offered by eight contractors remained grossly inadequate.

General union GMB estimates the package on the table for 3,213 workers will cost contractors between £15-20m, equating to around £6,200 per worker.

Paul Kenny, GMB General Secretary, said “The GMB Central Executive Council has been updated on progress in the talks which are now on the brink of breaking down.

“The main stumbling block is the amount of compensation being offered to the victims of blacklisting in whatever form that took.

“The total current cash envelope for fast track compensation we estimate is between £15m and £20m. That is less than £3m per company.

“This is grossly inadequate to deal with the devastating damage inflicted on people in their working lives and the colossal invasion of their privacy.”

A spokeswoman for The Construction Workers Compensation Scheme, said: “We would completely disagree. Talks are not at the point of breaking down at all.

“We are disappointed that the union has chosen to present the current situation in this light.

“As far as we are concerned we are still in ongoing discussion and we have already made many significant concessions in response to union requests.”

It is understood a key concession was to raise the basic minimum offer for simply being listed on the blacklisting database from £1,000 to around £2,000.

Last October Balfour Beatty, Carillion, Costain, Kier, Laing O’Rourke, Sir Robert McAlpine, Skanska UK and Vinci announced plans to set up the compensation scheme for victims of blacklisting.

So far 1,724 out of the 3,213 on the list know they were on the blacklist.

Several hundred of these 467 are covered by claims in the High Court.

Last November particulars of claim were served in the High Court in the GMB legal action against Carillion and others for blacklisting GMB members. The next hearing is due on 10 July.

Contractors proposed the compensation scheme as a preferable alternative to the High Court as a quicker and easier process.

Lawyers Pinset Masons, which are acting for the employers, argue the the levels of compensation are significantly higher than most claimants could expect to be awarded through the courts for a breach of the data protection act.

One blacklisted worker said: “If this was about a minor breach of data protection we wouldn’t have spent five years campaigning on it. This is about our human rights.”

 

Latest news

Self-employed labour rates hit record high

Average weekly pay tops £1,000 in London, the South East and East of England.
2 days ago

Network Rail chief takes finance reins at Skanska

Meliha Duymaz is new Chief Financial Officer
2 days ago

Construction Manager of the Year crowned

Kier's Joe O’Connell lands top prize. Full list of winners
3 days ago

Hochtief starts pulling down Welsh pylons

Construction starts on National Grid project
2 days ago

Kier wins London life sciences job

Contractor lands innovative landmark lab development at ARC West London
2 days ago

Social housing bidding opens for £1.5bn energy retrofit cash

First upgrades of social housing stock could start from early next year
3 days ago

Construction arm propels Mace to record profit

Revenue expected to top £2bn this year despite project delays
4 days ago

Fire destroys conveyor belt at Silvertown Tunnel site

Forty firefighters battle blaze at huge London site
3 days ago

Plan for £58m Bristol pharma R&D facility approved

Willmott Dixon in line to build the R&D facility at Bristol & Bath Science Park
3 days ago

Bond Street Elizabeth line station to open next month

Final station on delayed line will welcome passengers in October
3 days ago

Sisk fixes price on £227m Quintain flats job

Quintain signs single-largest contract so far at Wembley Park
4 days ago

Green light for St Helens town centre revamp

English Cities Fund to start phase 1 next April
3 days ago

Rising costs tip William Hare to £3.6m loss

Specialist contractor falls into the red despite near 60% revenue rise to £220m
5 days ago

Safety blitz on “aches, pains and strains” on site

1,000 site visits planned in coming months to check how workers are moving heavy or bulky materials
5 days ago

Drones sent flying underground to check sewers

Traditional inspection teams replaced with latest technology
4 days ago

Plan submitted for 470 Preston flats scheme

Stoneygate Central scheme on Dryden Mill site will rise to 16 storeys
4 days ago

Graham starts £124m M25 Junction 28

Work on the 36-month Junction 28 upgrade includes constructing a major two-lane loop road
4 days ago

Keltbray bags brace of energy infrastructure wins

Civils work on huge converter stations worth £30m to specialist
5 days ago

Balfour Beatty sole winner for £4bn Scape civils deals

Contractor reappointed to England, Wales and Northern Ireland and separate Scottish deals
5 days ago

PR expert Baroness Rock to chair Costain

Kate Rock will take up senior board role at the end of the year
5 days ago

Billington profit upgrade after strong first-half

Steelwork contractor says weaker pound will allow it to reignite its old export markets in Europe
5 days ago

Green light for £120m Liverpool “super restaurant”

Historic Pumphouse at Stanley Dock to be transformed
6 days ago

Tolent bags £15m Sunderland skills academy

Work to start later this year on Housing Innovation and Construction Skills Academy
5 days ago

Government launches net zero review

Pro-growth and pro-business review of net zero 2050 target launches
6 days ago

L&G Modular wins 400-home Wolverhampton job

Modular specialist wins 17-acre Canalside South regeneration scheme
6 days ago

£1.2bn A12 upgrade accepted for planning

15-mile Essex road upgrade between Chelmsford and Colchester aims for 2023/24 start
6 days ago

US consultant trumps WSP bid for RPS Group

Tetra Tech swoops but WSP could come back with new offer if bidding war breaks out
6 days ago

Sisk hands staff £900 cost of living cash boost

Firm also promises staff £400 Christmas voucher in November
6 days ago

Loathed IR35 reforms scrapped by Chancellor

Contractors will no longer have to determine tax status of freelance workers
1 week ago

Higgins signs deal for 740 West London homes

Work to start this autumn on two Hayes housing estate rebuilds
6 days ago

Contractor services