The Welsh Government has issued a procurement advice note to all local authorities and other public sector organisations outlining the steps that they need to take through procurement to help eradicate blacklisting.
Finance minister Jane Hutt said: “The use of blacklists is wholly unacceptable and I fully sympathise with the individuals and their families who have suffered a terrible injustice as a consequence of contractors engaging in this practice.
“Procurement is an important part of the overall policy toolkit of the Welsh Government. Under no circumstances is it acceptable for any business in receipt of public procurement expenditure to use blacklists.
“I am determined to take action in Wales. I trust that other governments in the UK will take similar action if they have not already done so."
Steve Murphy, general secretary of construction trades union Ucatt said: “This is a massive step forward in the campaign for justice for blacklisted workers. The construction companies involved in blacklisting must understand this issue won’t go away until they pay compensation to the workers they blacklisted.
“The other devolved administrations and the British government should follow the example of Wales and issue similar guidance. This will massively increase the pressure on the blacklisted construction companies to pay compensation.”