The 10 Minute Rule Bill which was moved by Luciana Berger, Labour MP for Liverpool Wavertree received its first reading.
The Bill is designed to combat the growing problem of phoenix firms, following the death of a worker. A phoenix firm is created when a company goes into administration and then resumes operations under a slightly different name, with the same directors, equipment and premises. UCATT has been campaigning to end the disturbing increase in the number of phoenix firms for some time.
Steve Murphy, General Secretary of UCATT, said: "This is a vital first step in the parliamentary campaign to stop companies who kill workers avoiding justice. If MPs are serious about protecting the safety of workers it is vital that this Bill becomes law."
If enacted into law Ms Berger's Bill would amend the Health and Safety at Work Act to give Health and Safety Executive inspectors the power to freeze a company's assets, in order to prevent the company manoeuvring itself into administration, in order to avoid justice. Similar freezing orders already operate in fraud and drugs cases.
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In her speech Ms Berger, said: "A worrying number of companies are not only ignoring the laws designed to protect their employees, but they are then exploiting legal loopholes to avoid proper punishment following deaths at work, resulting from their malpractice."
Ms Berger gave examples of two cases where phoenix firms had avoided justice.
The first case occurred in Ms Berger's Liverpool Wavertree constituency following the death of construction worker Mark Thornton in March 2007. One of the companies Bryn Thomas Crane Hire Ltd, entered administration months before they were successfully prosecuted for breaking the Health and Safety at Work Act. The company was then bought out of administration by its directors Dylan and Janus Thomas and resumed trading under the name Bryn Thomas Hire Ltd. As a result Bryan Thomas Crane Hire Ltd were fined just £4,500, the Judge in the case said an appropriate level of fine was £300,000.
The second case was that of Noel Corbin a satellite installer who fell to his death whilst working in Belsize Park in February 2008. Mr Corbin was employed by Foxtel Ltd. The company went into administration weeks before it was convicted of serious health and safety breaches in August 2011. As a result the company was fined just £1, but swiftly resumed trading as www.foxtel.co.uk
Ms Berger added: "No one can disagree that Noel Corbin deserved the proper sized ladder. Or that the crane which killed Mark Thornton should have been properly maintained and fit for the task it was doing. In the construction industry strong health and safety laws save lives. If our laws were stronger, more lives might be saved."
The Bill is due to receive its Second Reading on 27th April 2012, but will need Government support if it is to become law.
(CD/GK)
