‘Blacklisted’ construction workers list exposed

An investigation by the Information Commissioner’s Office has revealed that more than 40 construction companies have, for the past 15 years, been blacklisting construction workers following confidential data bought from a company called The Consulting Association. The companies, including big names Balfour Beatty, Taylor Woodrow and Costain, bought the information illegally and used it to vet individuals for employment.

The use of such of blacklists is apparently common practice in the industry, but it has proved difficult to find sufficient evidence of their existence. In 2005 a director of Balfour Beatty published the names of 1,000 blacklisted electricians, and the recent ICO investigation was prompted by a national newspaper investigation last year.

The ICO uncovered a database containing details on 3,213 construction workers, including sensitive personal information such as construction workers’ personal relationships, trade union activity, as well as people’s employment history. For a £3,000 annual fee, companies gained access to this data, which included such comments as “Poor time keeper. Will cause trouble”, “Irish ex-army. Bad egg”, “A member of the TGWU. Claimed to be a 'sleeper' and should be watched”, and “Do not touch!”

Deputy Information Commissioner, David Smith, said:

“This is a serious breach of the Data Protection Act. Not only was personal information held on individuals without their knowledge or consent but the very existence of the database was repeatedly denied. The covert system enabled Mr Kerr to unlawfully trade personal information on workers for many years helping the construction industry to vet prospective employees. The Data Protection Act clearly states that organisations must be open about how they process personal information, and in most cases those processing personal information must register with the ICO – Mr Kerr did not comply with the law on either count.

“On raiding Mr Kerr’s business premises we discovered an extensive operation involving household names in the construction industry. Kerr held information on thousands of construction workers and profited by checking names against his database.

“We will prosecute Mr Kerr and we are also considering what regulatory action to take against construction firms who have been using the system. I remind business leaders that they must take their obligations under the Data Protection Act seriously. Trading people’s personal details in this way is unlawful and we are determined to stamp out this type of activity.”

David Coats, Associate Director of Policy at The Work Foundation, said:

"The practice of blacklisting is objectionable on legal, moral and practical grounds.  Individuals have a legal right to know that their personal data is being collected for these purposes and must be able to challenge obvious inaccuracies. A fair labour market depends on everyone having the opportunity to gain employment based on their skills, talents and capabilities. How can fairness be guaranteed when employers rule some applicants out for ‘secret’ reasons which often have nothing whatsoever to do with whether they can do the job?

"Practical experience tells us that these blacklists have always been compiled using eccentric criteria and are often based on little more than hearsay and prejudice.  Dodgy data cannot be used to make good employment decisions. Businesses must understand too that their reputations as employers of choice are written off when blacklisting practices are made public."