‘Blacklisting’ firms face being barred from contracts

New laws which could help end the “blacklisting” of Scottish workers have been unveiled by First Minister Alex Salmond.

Firms which have been caught up in the practice could be barred from lucrative public sector contracts as part of the Procurement Bill which was sent to parliament yesterday.

It will go further than the Welsh government, which unveiled plans for a crackdown this week on the illegal practice, according to the SNP leader. The issue is centred on thousands of workers who were found on an illegal building industry blacklist because of trade union activity.

The First Minister said the legislation will make a “difference to many lives.”

He added: “It will provide new powers to tackle companies that do not comply with their legal obligations.

“I welcome the actions of the Welsh government in tackling this unacceptable practice. Our Bill here in Scotland will give parliament the opportunity to go further, by taking the power to regulate how companies are selected to bid and how their suitability should be assessed. These regulations will address blacklisting, working within the framework of EU law.”

The legislation will also make it easier for business, particularly newer businesses, small and medium-sized enterprises and the third sector to access public contract opportunities and also generate new training and employment opportunities

In 2009, construction companies were accused of subscribing to a database with details of workers’ trade union activity and employment history.

Some 3,000 names and personal details were listed, alongside comments like “militant”, “trade unionist” and “not to be trusted”.