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Companies that blacklist workers face ban from public contracts in Wales Companies that blacklist workers face ban from public contracts in Wales
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Companies that blacklist workers for taking part in trade union activity face being barred from multibillion-pound public sector contracts under plans unveiled by the Welsh government.Companies that blacklist workers for taking part in trade union activity face being barred from multibillion-pound public sector contracts under plans unveiled by the Welsh government.
Public sector bodies, from schools and hospitals to councils and the police, will be able to bar companies that are known to have excluded workers for raising legitimate health and safety concerns.Public sector bodies, from schools and hospitals to councils and the police, will be able to bar companies that are known to have excluded workers for raising legitimate health and safety concerns.
The move is a significant escalation in the campaign against the construction companies that were found to have used a blacklist run by the Consulting Association in 2009.The move is a significant escalation in the campaign against the construction companies that were found to have used a blacklist run by the Consulting Association in 2009.
The Welsh finance minister, Jane Hutt, said: "The use of blacklists is wholly unacceptable and I fully sympathise with the individuals and their families who have suffered a terrible injustice as a consequence of contractors engaging in this practice.The Welsh finance minister, Jane Hutt, said: "The use of blacklists is wholly unacceptable and I fully sympathise with the individuals and their families who have suffered a terrible injustice as a consequence of contractors engaging in this practice.
"Procurement is an important part of [our] overall policy toolkit … I am determined to take action in Wales. I trust that other governments in the UK will take similar action if they have not already done so.""Procurement is an important part of [our] overall policy toolkit … I am determined to take action in Wales. I trust that other governments in the UK will take similar action if they have not already done so."
Hutt has told 103 public sector bodies in Wales, including local councils, NHS and police organisations that they can exclude such companies from public contracts unless the firms have "self-cleaned" by taking measures such as compensating victims of blacklisting.Hutt has told 103 public sector bodies in Wales, including local councils, NHS and police organisations that they can exclude such companies from public contracts unless the firms have "self-cleaned" by taking measures such as compensating victims of blacklisting.
The guidance adds that "exclusion is not a means of punishing operators for past wrongdoing, but rather a means of putting right past wrongdoing and ensuring that it does not re-occur".The guidance adds that "exclusion is not a means of punishing operators for past wrongdoing, but rather a means of putting right past wrongdoing and ensuring that it does not re-occur".
Annual public procurement spending in Wales is £4.3bn, with around £1bn a year spent on construction.Annual public procurement spending in Wales is £4.3bn, with around £1bn a year spent on construction.
The move in Wales follows action by more than two dozen local authorities around the UK, revealed by Building magazine, that have already passed motions in support of a tightening of procurement procedures. In July the Scottish government said it was looking to introduce similar measures, though it is yet to detail them.The move in Wales follows action by more than two dozen local authorities around the UK, revealed by Building magazine, that have already passed motions in support of a tightening of procurement procedures. In July the Scottish government said it was looking to introduce similar measures, though it is yet to detail them.
At the TUC conference in Bournemouth this week trade union leaders announced a day of action on 20 November that will see protesters lobby parliament, as well as renewed calls for a Leveson-style inquiry into the issue.At the TUC conference in Bournemouth this week trade union leaders announced a day of action on 20 November that will see protesters lobby parliament, as well as renewed calls for a Leveson-style inquiry into the issue.
On Wednesday union leaders welcomed the Welsh government's announcement.On Wednesday union leaders welcomed the Welsh government's announcement.
The GMB national officer Justin Bowden said: "This fantastic announcement by the Welsh government is a game-changer. The message to the companies who blacklisted Welsh citizens is loud and clear: if you want public contracts in Wales then own up, clean up and pay up.The GMB national officer Justin Bowden said: "This fantastic announcement by the Welsh government is a game-changer. The message to the companies who blacklisted Welsh citizens is loud and clear: if you want public contracts in Wales then own up, clean up and pay up.
"The next stage is to see this rolled out by national and local government across the UK and blacklist the blacklisters from the public contracts they crave.""The next stage is to see this rolled out by national and local government across the UK and blacklist the blacklisters from the public contracts they crave."
The Unite Wales secretary, Andy Richards, said: "The Welsh government's action to rid Wales of the scourge of blacklisting by ensuring that those who practise blacklisting do not benefit from public contracts is to be commended. This comes on the back of the support of the first minister for the long-running trade union campaign to end blacklisting and demonstrates the immediate difference that devolved government can make to workers."The Unite Wales secretary, Andy Richards, said: "The Welsh government's action to rid Wales of the scourge of blacklisting by ensuring that those who practise blacklisting do not benefit from public contracts is to be commended. This comes on the back of the support of the first minister for the long-running trade union campaign to end blacklisting and demonstrates the immediate difference that devolved government can make to workers."
Steve Murphy, general secretary of the building workers' union Ucatt, said it was "a massive step forward" in the campaign for justice for blacklisted workers. "The construction companies involved in blacklisting must understand this issue won't go away until they pay compensation to the workers they blacklisted."Steve Murphy, general secretary of the building workers' union Ucatt, said it was "a massive step forward" in the campaign for justice for blacklisted workers. "The construction companies involved in blacklisting must understand this issue won't go away until they pay compensation to the workers they blacklisted."
The Welsh government has issued a procurement advice note to all major public sector organisations setting out the circumstances under which they can exclude firms.The Welsh government has issued a procurement advice note to all major public sector organisations setting out the circumstances under which they can exclude firms.
This claims that more than 100 of the individuals already identified as being named on the 3,200-strong blacklist held by the now defunct Consulting Association – which worked with 44 major construction firms until its closure in 2009 – live in Wales.This claims that more than 100 of the individuals already identified as being named on the 3,200-strong blacklist held by the now defunct Consulting Association – which worked with 44 major construction firms until its closure in 2009 – live in Wales.
The note says that contracting authorities can exclude firms under the 2006 Public Contracts Regulations because blacklisting can amount to "grave misconduct".The note says that contracting authorities can exclude firms under the 2006 Public Contracts Regulations because blacklisting can amount to "grave misconduct".
However, it cautions that exclusion must be considered on a "case-by-case basis" and suggests that public bodies seek legal advice.However, it cautions that exclusion must be considered on a "case-by-case basis" and suggests that public bodies seek legal advice.
It also suggests that firms can escape exclusion through other self-cleaning measures such as putting in place "staffing or personnel" measures to avoid any reoccurrence of blacklisting.It also suggests that firms can escape exclusion through other self-cleaning measures such as putting in place "staffing or personnel" measures to avoid any reoccurrence of blacklisting.
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