REDCAR and Cleveland Council in Yorkshire dumped trans-national services contractor Carillion yesterday due to its involvement in blacklisting construction workers.
The council will not renew a £5 million highway services contract with blacklist operator Carillion which it has held since 2004.
Instead the work will be taken back “in house” and Carillion’s workers will become council employees.
The decision was taken following a campaign by unions in the construction industry calling for blacklist operators to be refused public contracts.
The unions are also taking legal action to win compensation for victims of blacklisting and Carillion is among the companies facing the High Court on May 9.
“The taking back in house of this important service is good news,” said GMB regional organiser Chris Jukes.
“In an area that has suffered from significant job loss in key sectors, the fact that the council has chosen to try and get better value for local people by in-house provision has to be welcomed.
“Redcar and Cleveland Borough Council have made the right decision and at the same time ensured high quality service provision throughout the locality.”
The council adopted its policy of refusing to employ firms involved in blacklisting in 2013. Carillion’s contract runs out on March 31.
“The highways service will be delivered by the council from Friday April 1, as this way the service can be delivered more cost-effectively,” said Councillor Helen McLuckie, cabinet member for neighbourhoods.
“We are currently consulting with staff and trade unions regarding this decision.”
Blacklisting was exposed in 2009 when the government’s Information Commissioner’s Office seized a Consulting Association database of 3,213 construction workers and environmental activists used by 44 companies to vet new recruits and blacklist trade union and health and safety activists.