08:00 06 Mar 2009
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More than 40 construction firms are reported to have been buying confidential data on workers from a body called The Consulting Association (TCA) in secret for the past 15 years.
A raid on the office of TCA, based in Droitwich, Worcestershire, has revealed a serious breach of the Data Protection Act, according to the Information Commissioner's Office (ICO).
The objective of buying and then holding this confidential information is thought to have been to help employers steer clear of disruption that follows the footsteps of union militants.
The ICO said a secret system was run for over 15 years enabling employers to unlawfully vet job applicants.
Action is being considered against more than 40 firms who used the service.
Comments entered against individuals’ names included such entries as "lazy and a trouble stirrer", "ex-shop steward… definite problems… No Go" and "Communist Party".
Business Secretary Lord Mandelson has welcomed the intervention of the information commissioner.
"He will need to look into this further to see whether these practices are more widespread and take the appropriate action, as he's already done in this case," Mandelson commented.
Employers paid £3,000 as an annual fee plus a further £2.20 for individual details, the ICO said.
Invoices to construction firms for up to £7,500 were reported to have been seized during the raid.
The ICO has served an Enforcement Notice ordering TCA's owner to stop using the system. TCA is under pressure to cease trading altogether.
The ICO revealed that the owner had failed to notify it (the ICO) of the fact that it was acting as a data controller.
ICO deputy information commissioner David Smith said: "Trading people's personal details in this way is unlawful and we are determined to stamp out this type of activity."
Ian Kerr, of Droitwich, Worcestershire, who ran TCA, is said to have had a database of 3,213 workers. Names were accompanied by notes such as “poor timekeeper, will cause trouble”.
NG Bailey is reported to have told the Guardian: “We are taking these claims very seriously and an immediate and thorough investigation into the matter has been launched.”
The ICO lists the companies that subscribed to the Consulting Association. The use of brackets indicates where companies have undergone a change of name or where subsidiaries have been absorbed by parent companies. Ex members may no longer exist or no longer avail themselves of Kerr’s service.
Employment Relations Minister Pat McFadden said:
"These practices should not be taking place and I welcome the action taken by the Information Commissioner to put a stop to it.
"Personal data should not be covertly collected, stored and sold - legislation is in place for the authorities to take action if this happens.
"The government is committed to monitoring whether anti-union blacklisting is resurfacing as a problem in the UK and we will carefully examine any new evidence brought forward, including that collected by the Information Commissioner.
"If we see compelling evidence that blacklisting is taking place we will review whether we need to strengthen the law against it."