Ministers urged to investigate contractor McTear for failing to compensate workers

A construction firm faces calls for it to be blacklisted by all of Scotland’s local authorities after being accused of breaching government employment rules.

Union leaders are urging council bosses to review their links with McTear Contracts until they pay £125,000 owed to workers unfairly made redundant.

Meanwhile, Scottish Labour is calling on ministers to investigate whether they broke new employment legislation designed to protect staff working on public contracts.

The company, which has worked with local authorities and housing associations across Scotland, told The Sunday Post that money owed to nine kitchen fitters would be paid by the end of October after a six-year legal battle.

Still working with councils

The money has not been paid, however, and GMB Scotland says the company – which is currently advertising for staff after winning a four-year contract from Falkirk Council – should now be barred from receiving any public funds under the new workplace rules.

Louise Gilmour, GMB Scotland secretary, said she will write to the leaders of Scotland’s local authorities and Cosla, their umbrella group, highlighting McTear’s conduct and questioning its fitness for public contracts.

She said: “This firm has public service contracts all over Scotland and has worked for more than 10 local authorities.

“Its refusal to pay these workers the substantial sums owed to them should be a concern for every council and housing association that has dealings with it or is considering it as a potential contractor.

“We would ask them to review existing contracts and, before awarding new contracts, think carefully about whether this company’s actions in this matter meet the standards expected of firms being paid by taxpayers.”

The former staff are owed the money under TUPE legislation, which guarantees the same terms and conditions if jobs are transferred to a new business.

They had been employed by Amey, fitting kitchens in social housing in North Lanarkshire, before, in 2017, the contract was divided between two new contractors, including McTear.

Neither firm agreed to take the workers on but after a long-running and landmark legal action, the Employment Tribunal ruled the workers should have been transferred automatically.

No payment to workers

In May, McTear finally agreed, after talks at Acas, the arbitration service, to settle the dispute and pay £125,000 compensation to the workers.

However, it still has not made the payment.

Accounts published in 2022 revealed the company, which has worked for almost a third of Scottish local authorities, including North Ayrshire, Aberdeen, and Fife, had a turnover of £9.9million and profits before tax of £1.1million.

Scottish Labour also voiced concern at the company’s actions.

Mark Griffin, the party’s local government spokesman, asked the Scottish Government if the contractor is in breach of the rules.

He wrote to Neil Gray, secretary for economy, fair work, and culture, seeking confirmation that contractors should abide by the same standards as public sector bodies.

Griffin said: “It is disappointing a company awarded so many public contracts has not properly compensated former workers after what has already been a protracted legal process.

“The Fair Work policies are intended to ensure employers and contractors across Scotland’s public services treat staff with fairness and respect.

“That would not seem to be the case here and I will be writing to ministers to ask for the clearest possible guidance and confirmation that companies must commit to the same standards as public sector bodies before securing contracts.”

The Sunday Post first contacted Keiron McTear, director of the firm, on October 6.

He told us personal issues had delayed the payment but he would instruct his solicitor to transfer the money no later than October 31.

After being contacted again to explain why the funds had still not been paid, McTear said he is now off work on compassionate leave for a separate reason.

He said he anticipates returning to work on November 20 and will “resolve matters then”.