Construction National

Shadow business secretary Chuka Umunna will table a series of Parliamentary questions calling for an investigation into allegations contractors used blacklists on Olympic 2012 contracts.

Mr Umunna will ask the culture secretary to investigate whether contractors used public monies received under public contracts to pay to obtain information on construction workers from lists maintained by the Consulting Association.

The move comes after Ucatt general secretary Steve Murphy called for a public inquiry into the practice at a Scottish Affairs Select Committee hearing yesterday.

Mr Umunna said evidence given by Ucatt “suggests that blacklisting was used on an ‘industrial scale’ by construction firms in relation to public contracts”.

He added: “Allegations that blacklisting was used by contractors involved in the construction of Olympic Games are incredibly serious.

“I have put down Parliamentary Questions demanding that the Culture Secretary investigates this matter fully. As a matter of urgency we need to get to the bottom of what happened.”
The following Parliamentary questions will be tabled:

• To ask the Secretary of State for Culture, Media and Sport if she will investigate (a) allegations that blacklists were used by contractors completing construction work on public contracts for the 2012 Olympic and Paralympic Games and (b) whether such contractors used public monies received under such public contracts to pay to obtain information on construction workers from lists maintained by the Consulting Association?
• To ask the Secretary of State for Culture, Media and Sport i) how many discussions ii) what correspondence ministers or officials in her department have had with a) construction companies; b) trade unions on allegations that blacklists were used by contractors completing construction work on public contracts for the 2012 Olympic and Paralympic Games.
• To ask the Secretary of State for Business Innovation & Skills i) how many discussions ii) what correspondence ministers or officials in his department have had with a) construction companies; b) trade unions on allegations that blacklists were used by contractors completing construction work on public contracts for the 2012 Olympic and Paralympic Games.

Yesterday, Ucatt general secretary Steve Murphy spoke in front of the select committee, where he alleged that Sir Robert McAlpine had undertaken a “surge in blacklisting checks” as it underwent “large scale recruitment” in the building of the Olympic Stadium.

Mr Murphy raised the possibility during his evidence that “taxpayers’ money meant to be spent on the building of the Olympic Stadium… was instead spent on blacklisting construction workers”.

Ucatt said it had uncovered a surge in payment by Sir Robert McAlpine to the Consulting Association, which held lists of workers and was shut down in 2009. Ucatt referred to a £12,839.20 invoice in the period from July to September 2008, which was more than double the amount spent in the previous quarter.

The union leader conceded that he didn’t have proof that the surge was linked to checks on workers, or to the Olympic Stadium, but Ucatt’s political officer Jim Kennedy said “the fact that there’s this spike that coincides with mass recruitment for the Olympics is really cause for concern”.

He added: “It’s our proposition that this was blacklisting on an industrial scale”.

Mr Murphy and Mr Kennedy were asked by MPs what proof existed that the money referred to had been spent for checks on workers. Mr Murphy argued that the increased invoice as the firm geared up for work on the stadium was “too coincidental”. However, Mr Kennedy conceded that the sum may have included a subscription fee or another charge.

The two Ucatt officers said there was anecdotal evidence that people were still having great difficulty getting onto sites, particularly active trade unionists.

According to the union’s figures, at one stage Sir Robert McAlpine conducted 5,836 checks through the Consulting Association in one quarter, or around 65 per day.

In response to Ucatt’s evidence at the committee, a spokesperson for Sir Robert McAlpine said: “Over the last three years there have been a number of articles referring to many construction companies being members of the Consulting Association. However, due to ongoing legal proceedings we believe it is inappropriate to comment at this time.”

CN reported in July that blacklisted workers have launched a High Court claim against Sir Robert McAlpine estimated to be worth at least £17 million.

The contractor completed the 80,000-seat Olympic Stadium on time and to budget, with construction taking place between 2008 and 2011.

The Consulting Association was shut down in 2009 after compiling lists of several thousand workers with real or supposed union and political backgrounds.

The lists were accessed by over 40 construction firms. The Information Commissioners Office, which conducted a raid on the Consulting Association premises, only removed 5-10 per cent of files from the firm during an investigation it carried out three years ago.

Consulting Association owner Ian Kerr was fined £5,000 for data protection offences, and went on trial in 2009.

Ucatt general secretary Steve Murphy has called for a free-standing right not to be blacklisted, as well as a public inquiry into the practice. The union launched a campaign last week seeking support for a public inquiry into blacklisting, and to make the practice illegal.

The ICO met with the GMB union on 12 September and is working with the union’s lawyers to help identify which members may be on the list, while Ucatt is involved in a similar process.