Blacklisting contractors admit liability in revised defence strategy

The eight main contractors mounting a joint defence in the High Court against damages claims brought by 571 blacklisted workers have this week shifted their position to admit liability for the impact on individuals’ employment prospects and personal lives, but say they will continue to defend claims in relation to the degree of financial loss. 

It is understood that the group is admitting guilt so that the High Court hearings scheduled for mid-2016 will not hear arguments over the contractors’ liability; it will be clear from the outset that the 571 have a proper claim and the hearings will therefore only focus on “causation and loss”.

In other words, the hearings will look at individuals’ cases to assess the degree of linkage between being blacklisted and subsequent experiences in the job market, and the degree of financial loss experienced.

The full statement from the group, which consists of Balfour Beatty, Carillion, Costain, Kier, Laing O’Rourke, Sir Robert McAlpine, Skanska and Vinci, reads as follows:

“On 7 October 2015 we, the eight companies that comprise the Macfarlanes Defendants*, submitted a Re-Amended Generic Defence to the Court. In this document we lay out clearly a number of admissions; these admissions are also covered in the accompanying summary which, we hope, will provide interested parties with an easily accessible reference. 

“Both documents contain a full and unreserved apology for our part in a vetting information system run in the construction industry first through the Economic League and subsequently through The Consulting Association; we recognise and regret the impact it had on employment opportunities for those workers affected and for any distress and anxiety it caused to them and their families. 

“We are making these admissions now as we believe it is the right thing to do; we are keen to be as transparent as possible and to do what we can to simplify the High Court hearing scheduled for mid-2016. We hope that the clarity this brings will be welcomed by the affected workers.         

“Indeed, ever since the closure of The Consulting Association in 2009, we have been focused on trying to do the right thing by affected workers. This was why we set up The Construction Workers Compensation Scheme (TCWCS) in 2014 to provide those who felt they had been impacted by the existence of the vetting system with a fast and simple way of accessing compensation. Currently, we have paid compensation to 308 people who have contacted TCWCS and we are processing 39 ongoing eligible claims. 

“We remain committed to TCWCS. We are approaching the High Court hearing in the spirit of openness and full transparency and continue to defend the claim strongly in relation to issues of causation and loss.”

The cases brought by 571 individuals, supported by the GMB, UCATT and other groups, and represented by solicitors Leigh Day and OH Parsons, are currently going through preliminary stages in the High Court, pending a full trial in 2016.

The two unions welcomed the move, but stressed that they will be pressing for full redress for the affected individuals.

Brian Rye, acting general secretary of UCATT, said: “This is a highly significant step forward in the battle for blacklisting justice. Finally the companies have admitted their guilt and have begun to apologise. However, we will continue fighting until justice is achieved for all our affected members.”

Maria Ludkin, GMB national officer for legal and corporate affairs, said: “The admissions of liability for defamation by major construction companies, including Carillion and Sir Robert McAlpine, applies to all cases including those for GMB members. It is a testament to the aggressive legal strategy GMB has pursued.

“The fact that the companies have acknowledged the distress and anxiety caused to workers and their families now gives us a firm basis to make sure members are given the very substantial compensation they deserve, and that the true nature of the secretive Consulting Association is known.

“Even though it has taken years of fighting in the High Court, the companies have now acknowledged that they infringed workers’ rights to confidentiality, privacy, reputation and data protection, which is an important battle to have won.

“The next fight is to ensure the companies are properly held accountable so that this cannot happen again.”