Compensation Offer ‘Grossly Inadequate’ Compared to Carillion/Balfour Deal

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22 August 2014 | Updated 01 January 1970

The GMB union for construction workers, is asking officers and councillors in Scotland dealing with public contracts to compare the offer Carillion had made for Balfour Beatty which it indicated valued the latter at £200 million more than it had done previously with the less than £3 million each company is offering to compensate the workers they blacklisted.

The combined valuation of the two blacklisting firms had been £3.59 billion with Balfour Beatty valued at £2.09 billion and Carillion at £1.5 billion.

GMB is calling for Carillion and others firms to be excluded from tendering for any further public sector contracts in Scotland until they compensate workers that they blacklisted.

The Scottish government wrote to Scottish construction firms recently, seeking their help in publicising the Scottish Government's guidelines on blacklisting in relation to public sector contracts.

The Scottish Government stated: ‘Guidance makes it clear that firms which have engaged in blacklisting have committed an act of grave professional misconduct and should be excluded from public procurement, unless they can demonstrate appropriate remedial action.’

A total of 224 construction workers from around the UK were victims of blacklisting by Carillion. The names, on the files of the blacklisting body, The Consulting Association, were released in the course of an Employment Tribunal in early 2012 when Carillion was accused of blacklisting a construction worker in London.

Picture: Out for more - the GMB union believes companies, like Carillion, involved in illegal blacklisting of workers should pay more compensation

Article written by Mike Gannon | Published 22 August 2014

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