Companies which don't recognise unions could be stripped of government contracts under Labour
2 min read
Companies which do not recognise trade unions are among those which could be stripped of public sector contracts under a Labour government.
Shadow Cabinet Office minister said that was an example of "risky" behaviour which his party would crack down on if it wins the next election.
Other misdemeanours would include paying bosses too much, dodging tax, failing to pay suppliers on time, not training their staff, breaking equalities rules or breaching environmental standards.
Their contracts would either be put back out for tender or carried out by the public sector instead, or the company will be forced to agree an improvement plan.
The shift in Labour policy follows the collapse of construction firm Carillion, which ministers continued to award big-money contracts even after it issued a profit warning last July.
In a major speech, Mr Trickett said: "The Tories have handed over multi-million pound contracts to large companies, regardless of how unstable those firms are.
"The Government is overseeing a race to the bottom in these firms’ standards, turning a blind eye to blacklisting, tax avoidance and a whole host of other questionable behaviours.
"Theresa May has said she is a customer of these huge companies, but she’s actually the Prime Minister and should act accordingly.
"Labour would act decisively, in contrast with the weakness of the current government, and if outsourcing firms cannot guarantee their business standards, we will take back control of contracts as soon as possible."
Under Labour, companies bidding for public contracts would need to provide full union recognition for staff, and promise not to pay executives more than twenty times their lowest earners.
They would also have to prove they had paid all their taxes, had adopted "best practice" on equalities and paid their suppliers in full within 30 days.
But Cabinet Office Minister Oliver Dowden said: "What matters to us is what works for the public. That means having the right mix of public, voluntary and private sector involvement delivering excellent public services and value for money for taxpayers.
"Labour’s plan puts politics first and would increase costs, and ordinary working people would pay the price through higher taxes, meaning less money going to our frontline services.”
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