Blacklist (employment)

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In employment, a blacklist or blacklisting refers to denying people employment for either political reasons (due to actual or suspected political affiliation), due to a history of trade union activity, or due to a history of whistleblowing, for example on safety or corruption issues. Blacklisting may be done by states (denying employment in state entities) as well as by private companies.

Contents

The first published reference to blacklisting of an employee dates from 1774. This became a significant employment issue in American mining towns and company towns, where blacklisting could mean a complete loss of livelihood for workers who went on strike. [1]

United States

The 1901 Report of the Industrial Commission stated "There was no doubt in the minds of workingmen of the existence of the blacklisting system, though it was practically impossible to obtain evidence of it." It cited a news report that in 1895 a former conductor on the Atlantic and Pacific Railroad committed suicide, having been out of work ever since a strike: "Wherever he went the blacklist was ahead of him". [2]

The National Industrial Recovery Act of 1933 gave employees the right to organize and bargain collectively and numerous strikes occurred until the Act was declared unconstitutional by the Supreme Court in 1935, and organized labor sought relief from employers who had been able to blacklist union members. [3] Though the National Labor Relations Act of 1935 outlawed punitive blacklists against employees who supported trade unions or criticised their employers, the practice remained common. [1] A U.S. Department of Labor and Bureau of Labor Statistics report published in 1938 noted that "Closely related to discrimination and the employer's right to discharge is the blacklist." Employees who had been fired had no recourse to legal action against the employer, but "most States have statutes which make criminal the establishment of a blacklist." [4]

The Taft-Hartley Act of 1947 made amendments which sustained blacklisting by affirming the right of employers to be anti-union, and by requiring trade union leaders to make loyalty oaths which had the same effect as the Hollywood blacklist. [1]

Hollywood blacklist

An investigation was launched in 1947 by the House Un-American Activities Committee (HUAC) into Communist influence on the motion picture industry. The first in the film industry to be blacklisted, as a result of their refusal to provide evidence to HUAC, were a group known as the Hollywood Ten, most of them screenwriters, who had at one time or another been members of the American Communist Party. The best known of the Hollywood Ten are the writers Ring Lardner, Jr. and Dalton Trumbo, who was barred from openly working in Hollywood for over a dozen years as a result of his defiance of HUAC. Trumbo continued to work under pseudonyms and "fronts" until the revelation in 1960 that he had written the script for Spartacus . Actor John Garfield was one of the Hollywood performers to have been blacklisted by major American film studios as a direct result of HUAC investigations and hearings.

US real estate appraisers

On October 16, 2008, Capitol West Appraisers filed a class action lawsuit against Countrywide Financial Corp. (now owned by Bank of America) alleging Countrywide blacklisted appraisers who refused to appraise real estate at inflated prices. [5] [ non-primary source needed ]

In Capitol West v. Countrywide Financial Corp., Capitol West Appraisals alleges Countrywide pressured appraisers to set the value of a property at the selling price rather than setting the value based on an inspection of the property and comparable market prices in the area as required by appraisal standards. Misrepresenting the value of a property allowed Countrywide to lend more money to more buyers at higher risks with less collateral. Countrywide could then make more money off the loans by selling them on secondary markets as mortgage backed securities.

Appraisers who refused to misrepresent property values were put in a "do not use" or "Field Review List" data base, in essence a blacklist. When an appraisal was submitted by an appraiser on the "do not use" database it was flagged for "field review". A field review is a review of the original appraisal. All field reviews were conducted by Landsafe, a subsidiary of Countrywide, who would consistently shoot holes in any appraisal from a blacklisted appraiser. Mortgage Brokers were then required to get a second appraisal from another appraiser. Since independent mortgage brokers did not want to pay for two appraisals and did not know which lender they would ultimately use, and since Countrywide was the biggest home mortgage lender in the U.S., brokers simply would not use anyone on the Field Review List.

As of August 28, 2008, more than 2,000 names were on the Field Review List, Countrywide's blacklist, which it sends to mortgage brokers who hire appraisers across the United States. [5] [ non-primary source needed ]

United Kingdom

Blacklisting in relation to trade union activity is illegal in the UK under the Employment Relations Act 1999 (Blacklists) Regulations 2010.

Trade union members, and workers who raised health and safety and other concerns in the United Kingdom have been blacklisted by employers. They used the services of the Economic League, which operated between 1919 and 1993, and The Consulting Association, which, until it was closed down in February 2009, took over this role within the UK construction industry. [6] [7] However the Information Commissioner's Office was subsequently criticised for failing to take further punitive action against the employers using the blacklist, or carrying out any further investigation. [8]

However, the Scottish Affairs Select Committee subsequently began calling for evidence in relation to blacklisting, [9] producing an interim report in March 2013 [10] and a final report in 2015. Whilst the inquiry was underway, the Scottish Government issued an instruction relating to public procurement which stated that "any company which engages in or has engaged in the blacklisting of employees or potential employees should be considered to have committed an act of grave misconduct in the course of its business and should be excluded from bidding for a public contract unless it can demonstrate that it has taken appropriate remedial steps". [11] The legal position in the Scottish Public Contracts Regulations of 2012 stated that "a business which committed an act of grave misconduct in the course of [its] business or profession" could be so excluded ("A contracting authority may treat an economic operator as ineligible ..."). [12] Current regulations as of September 2023 state that a company which breaches the 2010 regulations is to be excluded from procurement processes for a period of three years unless it can provide satisfactory evidence of having corrected its procedures or that exclusion would not be a proportionate remedy. [13] Corrective action must "in all cases" include issuing an apology. [11] : 4  While acknowledging that some positive steps had been taken, the Select Committee's report said "many questions in relation to the practice of blacklisting remain unanswered", and recommended a full public inquiry as a matter of priority. [14]

Norway

Blacklisting was used in Norway before the Second World War. Well-known blacklisted trade unionists include Thorolf Bugge. [15]

Related Research Articles

A trade union or labor union, often simply referred to as a union, is an organization of workers whose purpose is to maintain or improve the conditions of their employment, such as attaining better wages and benefits, improving working conditions, improving safety standards, establishing complaint procedures, developing rules governing status of employees and protecting and increasing the bargaining power of workers.

Labour laws, labour code or employment laws are those that mediate the relationship between workers, employing entities, trade unions, and the government. Collective labour law relates to the tripartite relationship between employee, employer, and union.

<span class="mw-page-title-main">McCarthyism</span> Phenomenon of US political rhetoric after WWII

McCarthyism, also known as the Second Red Scare, was the political repression and persecution of left-wing individuals and a campaign spreading fear of communist and Soviet influence on American institutions and of Soviet espionage in the United States during the late 1940s through the 1950s. After the mid-1950s, U.S. Senator Joseph McCarthy, who had spearheaded the campaign, gradually lost his public popularity and credibility after several of his accusations were found to be false. The U.S. Supreme Court under Chief Justice Earl Warren made a series of rulings on civil and political rights that overturned several key laws and legislative directives, and helped bring an end to the Second Red Scare. Historians have suggested since the 1980s that as McCarthy's involvement was less central than that of others, a different and more accurate term should be used instead that more accurately conveys the breadth of the phenomenon, and that the term McCarthyism is, in the modern day, outdated. Ellen Schrecker has suggested that Hooverism, after FBI Head J. Edgar Hoover, is more appropriate.

<span class="mw-page-title-main">National Labor Relations Act of 1935</span> 1935 U.S. federal labor law

The National Labor Relations Act of 1935, also known as the Wagner Act, is a foundational statute of United States labor law that guarantees the right of private sector employees to organize into trade unions, engage in collective bargaining, and take collective action such as strikes. Central to the act was a ban on company unions. The act was written by Senator Robert F. Wagner, passed by the 74th United States Congress, and signed into law by President Franklin D. Roosevelt.

Blacklisting is the action of a group or authority compiling a blacklist of people, countries or other entities to be avoided or distrusted as being deemed unacceptable to those making the list; if people are on a blacklist, then they are considered to have done something wrong, or they are considered to be untrustworthy. As a verb, blacklist can mean to put an individual or entity on such a list. A blacklist is synonymous with a list of banned persons or organizations, and is the opposite of a whitelist.

Collective bargaining is a process of negotiation between employers and a group of employees aimed at agreements to regulate working salaries, working conditions, benefits, and other aspects of workers' compensation and rights for workers. The interests of the employees are commonly presented by representatives of a trade union to which the employees belong. A collective agreement reached by these negotiations functions as a labour contract between an employer and one or more unions, and typically establishes terms regarding wage scales, working hours, training, health and safety, overtime, grievance mechanisms, and rights to participate in workplace or company affairs. Such agreements can also include 'productivity bargaining' in which workers agree to changes to working practices in return for higher pay or greater job security.

<span class="mw-page-title-main">United Kingdom labour law</span>

United Kingdom labour law regulates the relations between workers, employers and trade unions. People at work in the UK have a minimum set of employment rights, from Acts of Parliament, Regulations, common law and equity. This includes the right to a minimum wage of £11.44 for over-23-year-olds from April 2023 under the National Minimum Wage Act 1998. The Working Time Regulations 1998 give the right to 28 days paid holidays, breaks from work, and attempt to limit long working hours. The Employment Rights Act 1996 gives the right to leave for child care, and the right to request flexible working patterns. The Pensions Act 2008 gives the right to be automatically enrolled in a basic occupational pension, whose funds must be protected according to the Pensions Act 1995. Workers must be able to vote for trustees of their occupational pensions under the Pensions Act 2004. In some enterprises, such as universities or NHS foundation trusts, staff can vote for the directors of the organisation. In enterprises with over 50 staff, workers must be negotiated with, with a view to agreement on any contract or workplace organisation changes, major economic developments or difficulties. The UK Corporate Governance Code recommends worker involvement in voting for a listed company's board of directors but does not yet follow international standards in protecting the right to vote in law. Collective bargaining, between democratically organised trade unions and the enterprise's management, has been seen as a "single channel" for individual workers to counteract the employer's abuse of power when it dismisses staff or fix the terms of work. Collective agreements are ultimately backed up by a trade union's right to strike: a fundamental requirement of democratic society in international law. Under the Trade Union and Labour Relations (Consolidation) Act 1992 strike action is protected when it is "in contemplation or furtherance of a trade dispute".

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Real estate appraisal, property valuation or land valuation is the process of assessing the value of real property. Real estate transactions often require appraisals because every property has unique characteristics. The location also plays a key role in valuation. Appraisal reports form the basis for mortgage loans, settling estates and divorces, taxation, and so on. Sometimes an appraisal report is used to establish a sale price for a property.

<span class="mw-page-title-main">Hiring hall</span> Labor organization

In organized labor, a hiring hall is an organization, usually under the auspices of a labor union, which has the responsibility of furnishing new recruits for employers who have a collective bargaining agreement with the union. It may also refer to a physical union hall, the office from which the union may conduct its activities.

<span class="mw-page-title-main">United States labor law</span> US laws on fair pay and conditions, unions, democracy, equality and security at work

United States labor law sets the rights and duties for employees, labor unions, and employers in the US. Labor law's basic aim is to remedy the "inequality of bargaining power" between employees and employers, especially employers "organized in the corporate or other forms of ownership association". Over the 20th century, federal law created minimum social and economic rights, and encouraged state laws to go beyond the minimum to favor employees. The Fair Labor Standards Act of 1938 requires a federal minimum wage, currently $7.25 but higher in 29 states and D.C., and discourages working weeks over 40 hours through time-and-a-half overtime pay. There are no federal laws, and few state laws, requiring paid holidays or paid family leave. The Family and Medical Leave Act of 1993 creates a limited right to 12 weeks of unpaid leave in larger employers. There is no automatic right to an occupational pension beyond federally guaranteed Social Security, but the Employee Retirement Income Security Act of 1974 requires standards of prudent management and good governance if employers agree to provide pensions, health plans or other benefits. The Occupational Safety and Health Act of 1970 requires employees have a safe system of work.

Bank of America Home Loans is the mortgage unit of Bank of America. It previously existed as an independent company called Countrywide Financial from 1969 to 2008. In 2008, Bank of America purchased the failing Countrywide Financial for $4.1 billion. In 2006, Countrywide financed 20% of all mortgages in the United States, at a value of about 3.5% of the United States GDP, a proportion greater than any other single mortgage lender.

<span class="mw-page-title-main">Employment Relations Act 1999</span> United Kingdom legislation

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<span class="mw-page-title-main">Surface Transportation Assistance Act</span> 1982 United States law

The Surface Transportation Assistance Act of 1982 was a comprehensive transportation funding and policy act of the United States Federal Government, 96 Stat. 2097. The legislation was championed by the Reagan administration to address concerns about the surface transportation infrastructure. The Act contained Title V, known as the Highway Revenue Act of 1982, which added five cents to the per gallon gas tax, of which four cents was dedicated to restore interstate highways and bridges, and one cent for public transit. The Act also set a goal of 10 percent for participation of disadvantaged business enterprises in federal-aid projects.

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<span class="mw-page-title-main">Indian labour law</span> Laws regulating labour in India

Indian labour law refers to law regulating labour in India. Traditionally, the Indian government at the federal and state levels has sought to ensure a high degree of protection for workers, but in practice, this differs due to the form of government and because labour is a subject in the concurrent list of the Indian Constitution. The Minimum Wages Act 1948 requires companies to pay the minimum wage set by the government alongside limiting working weeks to 40 hours. Overtime is strongly discouraged with the premium on overtime being 100% of the total wage. The Payment of Wages Act 1936 mandates the payment of wages on time on the last working day of every month via bank transfer or postal service. The Factories Act 1948 and the Shops and Establishment Act 1960 mandate 15 working days of fully paid vacation leave and 7 casual leaves each year to each employee, with an additional 7 fully paid sick days. The Maternity Benefit (Amendment) Act, 2017 gives female employees of every company the right to take 6 months' worth of fully paid maternity leave. It also provides for 6 weeks worth of paid leaves in case of miscarriage or medical termination of pregnancy. The Employees' Provident Fund Organisation and the Employees' State Insurance, governed by statutory acts provide workers with necessary social security for retirement benefits and medical and unemployment benefits respectively. Workers entitled to be covered under the Employees' State Insurance are also entitled to 90 days worth of paid medical leaves. A contract of employment can always provide for more rights than the statutory minimum set rights. The Indian parliament passed four labour codes in the 2019 and 2020 sessions. These four codes will consolidate 44 existing labour laws. They are: The Industrial Relations Code 2020, The Code on Social Security 2020, The Occupational Safety, Health and Working Conditions Code, 2020 and The Code on Wages 2019.

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<span class="mw-page-title-main">Unfair labor practice (Japan)</span> Acts committed by an employer that violate the right of workers to organize

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<span class="mw-page-title-main">Whistleblower protection in the United States</span>

A whistleblower is a person who exposes any kind of information or activity that is deemed illegal, unethical, or not correct within an organization that is either private or public. The Whistleblower Protection Act was made into federal law in the United States in 1989.

References

  1. 1 2 3 Robert E. Weir (2013). Workers in America: A Historical Encyclopedia. ABC-CLIO. pp. 71–72. ISBN   978-1-59884-718-5.
  2. ↑ United States Industrial Commission; Balthasar Henry Meyer; Roswell Cheney McCrea (1901). Report of the Industrial Commission on Transportation, including testimony, review and topical digest of evidence, and special reports on railway legislation. U.S. Government Printing Office.
  3. ↑ "National Labor Relations Act (1935) (print-friendly version)". Welcome to OurDocuments.gov. 8 March 2017. Retrieved 8 March 2017.
  4. ↑ Characteristics of Company Unions, 1935. U.S. Government Printing Office. 1938. pp. 215–.
  5. 1 2 Class Action Complaint: Capitol West v. Countrywide (PDF), 16 October 2008
  6. ↑ "Press release" (PDF) (Press release). Office of the Information Commissioner. 6 March 2009. Archived from the original (PDF) on March 27, 2009.
  7. ↑ Minutes – Management Board, 27 April 2009 (PDF), Information Commissioner's Office, 27 April 2009, p. 5, archived from the original (PDF) on 4 August 2009, 8.8. March also saw the ICO investigation into the Consulting Association, which has operated an unregistered database (effectively a 'blacklist') of construction industry workers. The Consulting Association was ordered to stop processing the data. The ICO has put in place a system for individuals to check their information. The Board praised the ICO's joined up work on this matter.
  8. ↑ Damning ICO Misses the Point on Blacklisting from https://www.constructionnews.co.uk , accessed 24 March 2013
  9. ↑ Builders face blacklist damages claims from Financial Times accessed 24 March 2013
  10. ↑ "Scottish Affairs Committee - Ninth Report Blacklisting in Employment: Interim Report". www.parliament.uk. Retrieved 7 September 2015.
  11. 1 2 Scottish Procurement, SPPN 4 2013: Exclusion from public contracts of companies which engage in blacklisting, published 20 November 2013, accessed 12 September 2023
  12. ↑ UK Legislation, The Public Contracts (Scotland) Regulations 2012, regulation 23(4)(e), accessd 12 September 2023
  13. ↑ Scottish Government, Blacklisting, Procurement Journey, accessed 12 September 2023
  14. ↑ "Scottish Affairs - Seventh Report Blacklisting in Employment: Final Report". www.parliament.uk. Scottish Affairs Committee. Retrieved 7 September 2015.
  15. ↑ Lorenz, Einhart (1983). Det er ingen sak å få partiet lite. NKP 1923–1931 (in Norwegian). Oslo: Pax. p. 289. ISBN   82-530-1255-1.
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