UCATT Supports Bill To End 'Phoenix Firms'

Construction union UCATT are calling on MPs to support a Bill which will make it far more difficult for companies to escape justice, following the death of a worker.

The 10 Minute Rule Bill which is being tabled by Labour MP Luciana Berger, calls for an amendment to the Health and Safety Act, giving power to the Health and Safety Executive to apply to the courts for a freezing order to prevent a company voluntarily going into administration, following the death or serious injury of a worker. The Bill will have its first reading on Wednesday 8th February.

The number of phoenix firms escaping justice, through entering administration, has become an increasing problem in recent years. By opting for administration companies are often able to avoid prosecution altogether, or if found guilty the financial penalties are dramatically reduced.


Ms Berger tabled her Bill partially as a result of the death of Mark Thornton in her Liverpool Wavertree constituency in March 2007.

Mr Thornton died after a mobile crane toppled over and crushed him. The crane was supplied by Bryn Thomas Crane Hire Ltd.

Prior to the case against the company going to court in April 2011, Bryn Thomas Crane Hire Ltd went into administration in December 2010. After entering administration the company was bought out by its directors, Dylan and Janus Thomas and resumed trading, using the same equipment, under the name Bryn Thomas Hire Limited.

As a result of being in administration, despite being found guilty of serious health and safety failings which contributed to Mr Thornton’s death, Bryn Thomas Crane Hire Ltd were fined just £4,500. The judge said that an appropriate fine if the company had not been in administration was £300,000.

Luciana Berger MP, said: "Companies whose actions result in the death of a worker must be forced to take responsibility. If passed, my Bill will ensure that companies can’t become phoenix firms to escape justice."

Steve Murphy, General Secretary of UCATT, said: "Every workplace death is a tragedy, leaving a family devastated. It is simply appalling that companies can cheat justice following the death of a worker by using creative accountancy and get away completely scot free."

(CD/DW)